Kit Kat Company Essay Example for Free

fit hombre Company Essay1 INTRODUCTIONoutfit bozo started in August 29 in 1935 in York by Rowntree, in 1973 kit out cat-o-nine-tails entered in Japan market. In 1988, Nestle took over the fit out guy ( fit bozo, 2014). Today, getup computed axial tomography is truly successful in Japan, getup computed axial tomography has much than then devil hundred dissimilar products in Japan, it attend to Kit computerized tomography get much and more(prenominal) market sh atomic number 18 in Japan( Kit guy, 2014). More and more people think Kit Kat is like a logo in Japan, because in that respect are some special Kit Kat products only selling in Japan. Kit Kat success in Japan is the fact, but why Kit Kat is successful in Japan, it must be affect with generic dodging. Kit Kat using the right strategy to serve up them success. generic strategy is very important for the confederacy, it leave alone help the company increase the war-ridden. When the Kit Kat prefer t he right generic strategy, it will help the company more stronger, they privy get more market shares, help the company to be successful. 2. Generic StrategyGeneric strategy was described by Micheal Porter in 1979, Porters generic strategy is talking about how a company increase the hawkish advantage in their chosen market. There are three generic strategy, personify leadership, variantiation or focus, focus is about two different way, apostrophize focus or differentiation focus (Oxlearn.com, 2014). Cost leadership strategy means still the cost in the organization help the company to increase the competitive advantage. For example Wal-Mart, they are using cost leadership, they are very successful, they harness the cheap domestic suppliers and from low-wage foreign markets, they donjon the cost and usingthe lower footing selling to the customers (Small Business Chron.com, 2014). note strategy means a company using many different products to increase the competitive advantag e and get more market shares.For example, Apple company is a very successful in the world, they earn many different products, iPhone, iPad, iPod, Mac, Watch, etc. They are using different products to improve themselves, help the company to get more customers and market shares. Focus strategy is including cost focus and differentiation focus. The different with cost focus and differentiation focus is focus the cost or products differentiation. Cost focus is focus the cost, use the lower cost to improve the competitive advantage. contraryiation focus is a company try to produce the different products in the new market take the company more stronger, increasing the competitive advantage. Kit Kat is a successful company in the world, they are using cost leadership strategy and differentiation strategy.There are some reasons for why Kit Kat chosen cost leadership strategy. Lower cost raw materials. Kit Kat owned by Nestle SA. Kit Kat is selling coffee bean, when they making the produc ts, the need the raw materials, for example sugar, milk, coffee and chocolate. Nestle SA is doing business with this raw materials, so they sens use the cheaper prices to get the raw materials (MarketWatch, 2014). That will help the company to reduce the cost, it means Kit Kat can use the lower price to selling their product and keep the profit, increase the competitive advantage. Retail. In January 15 2014, the worlds first Kit Kat opened in Tokyo (Ashcraft, 2014).Before 2014, Kit Kat do not have any store, they only selling in the other craps. in all of the customer can cloud the Kit Kat from the supermarket or shops. It can help the company save the cost. They are selling in the supermarket can help the company, they do not need to hire more employees and open the own shop they need to spend more cost. Today they opened the first store in Tokyo, but customer also can buy the Kit Kat from the supermarket or in other shops, it can help the company get more customer and increas e the competitive advantages. There are some reasons for why Kit Kat chosen differentiation strategy. The strategy customer.Kit Kat has more then 200 different products in Japan. There are more then forty products are only selling in Japan, for example Wasabi, Strawberry Cheesecake, Lemon Vinegar, and Cucumber (Break with Kit Kat, 2014). Kit Katproduces many different products, that is achieve the differentiation strategy, they try to use the differentiation to improve the company. Different people has different taste, need and want, so different will get more and more customer to buy the products, different product is suitable to different customers. That is the reason why different products can increase the competitive advantage for the company. All of the different products have their own package, different colour and different weight.In 1942, Kit Kat fist time selling the blue Kit Kat in the market, in 1949, Kit Kat start to selling red Kit Kat in the market, after that, Kit Kat produced more and more different Kit Kat, for example, in 1990s Kit Kat start to selling the Nestle Macintosh Corporation ( Kit Kat, 2014). Japan is a positive country, people want to improve the quality of life, so they need more different products, they want more different experience. Everyones life is different, so they have different demand, students, workers and old people have different need, today you can find much more different Kit Kat in Japan, anyone can choose different Kit Kat for them. Different Kit Kat has own colour, people like different colour, so different colour can keep different customer and different weight is suitable for different customer, for example, if one family like eating Kit Kat, they need more weight, can help them save time, do not need to buy many times, so bigger weight is suit for them. Key competitors.Kit Kat is doing business with chocolate, but there are some chocolate industry in the world, for exampleFerrero brands, Mars brands and Cadbur y brands. They are also doing the business with chocolate, the are also very successful, so Kit Kat need to improve the competitive advantage. Other brand do not have much different products, but Kit Kat have many different products, it will help Kit Kat easy to get the customer. Kit Kat is owned by Nestl SA which also owns a go astray of other product brands, from 2007 to 2012, the market share only changed 0.7%, that mean differentiation help the Kit Kat keep the market shares (Break with Kit Kat, 2014).Kit Kats target market is men and women of all ages, so different products can help Kit Kat keep the market shares. All of the chocolate company selling the products in Japanese market, the number of customers is fixed, so Kit Kat is using differentiation strategy to increase the competitive advantage, when Kit Katfight with other company in the market, they are more stronger, they can get more market shares, help the company more successful. 3. Ebola and Kit KatEbola computer vir us is an infectious disease, this disease has a high risk of death (Who.int, 2014). First cases notified in March 2014 in west Africa.(Who.int, 2014). It affect the price of cocoa, in November the price of cocoa up twenty percent, before November it was up to thirty-five percent to forty percent (PBS NewsHour, 2014). West Africa is the worlds largest cocoa origin, when Ebola virus found in west Africa, that affect the cocoa trade, many farmer in Ebola virus disease, because this disease has a high risk of death, so much of the farmer died of Ebola virus disease, so they lose a lot of labor, they do have enough people to working with the cocoa, so the chocolate company can not buy the enough cocoa, demand higher then supply, the price of cocoa will going up. In USA, all of the price of chocolate increase ten cents for severally Kit Kat. Kit Kat is a chocolate company, cocoa is the most important raw material, they need the cocoa to make the chocolate, but the price of cocoa going up , so they need to spend more cost on the cocoa, but they did not pass all the cost to the customers, so in 2014 the gross revenue slump seven percent (FoodNavigator-USA.com, 2014).Kit Kat can use operational level strategy. Operational level strategy A plan that flesh out how a business will use its production resources to meet its goals. Many business managers will put together a detailed operation strategy in order to clearly present to subordinate staff their plans for how their portion of the business should function in order to attain its objectives (BusinessDictionary.com, 2014). The price of cocoa up around twenty percent is about the global economy, so all of the chocolate companies are increase the costs, they also need the cocoa to produce the products. If Kit Kat is using cost same like other time, they also want to keep the profit, they must transfer the cost to the customer, it means increase the price of the Kit Kat, but Kit Kat can choose to reduce the cost in the tr ansport or other please, they also can find the cocoa supplies from other countries, help them to reduce the cost.Seventy percent cocoa from west Africa, there are also thirty percent cocoa they can find, using the cocoa from other may be is cheaper, try to save the cost in the other places, for example package,or transportation. Kit Kat can find the cheaper other raw materials, help the company to reduce the cost. When Kit Kat try to save the cost in other places, do not increase the price of products, they can increase the competitive advantage, help the company keep the customer and market shares.4. ConclusionKit Kat is a very successful company in Japan. Kit Kat is start from 1935 to now, Kit Kat has 79 years history. In this 79 years, Kit Kat from a small business becoming this successful company, because they are using the right strategy, right strategy can help the company service and becoming more stronger. They have more the four hundred different products, they can fight w ith the Ferrero brands, Mars brands and Cadbury brands, and becoming same with that brands, even more successful in Japan. Different strategy suit for different situation and different company, there is not best strategy, there is only suitable strategy, a strategy may be can take the company more and more successful or closed.5. List of ReferencesKit Kat. 2014. KitKat History. Online. lendable from http//nestle.jp/brand/kit/about/history/ Accessed 22 DEC 2014. Oxlearn.com, (2014) Oxford Learning Lab Watch it Learn it Badge it. Online. Available from http//www.oxlearn.com/arg_Marketing-Resources-Porter%27s-Generic-Strategies_11_33 Accessed 28 December 2014. Small Business Chron.com, (2014) Examples of Cost Leadership Strategy Marketing. Online. Available from http//smallbusiness.chron.com/examples-cost-leadership-strategy-marketing-12259.htm l Accessed 28 December 2014. MarketWatch, (2014) Nestle keeps view on raw material inflation. Online. Available from http//www.marketwa tch.com/story/nestle-keeps-view-on-raw-material-inflation-2012-08-09 Accessed 28 December 2014. Ashcraft, B. (2014) The Worlds First Kit Kat Store Is Opening in Tokyo, Kotaku. Online. Available from http//kotaku.com/the-worlds-first-kit-kat-store-is-opening-in-tokyo-1501753395 Accessed 28 December 2014. Break with Kit Kat, (2014) Global Business Strategy. Online. Available from http//breakwithkitkat.weebly.com/global-business-strategy.html Accessed