Campbell: How To Keep The Soup Simmering Harvard Case Solution & Analysis

Campbell: How To Keep The Soup Simmering Case Solution

SWOT Analysis:

Strength:

• The sales of Campbell Soup are increasing, which can be considered a main strength.
• The market share of the Campbell Soup is also increasing not only in United States but in other parts of the world as well such as Russia and China.
• The management of Campbell is continuously increasing the product range, furthermore, the management is also bringing continuous innovation in the taste of their products which might result in the increase in future sales.
• The fact that the products of Campbell are exported in more than 100 countries, makes Campbell the leading company in the Soup producing industry. The high distribution will also result in the increased brand identity as well.

Weaknesses:

• The profit margins of Campbell are reducing day by day due to high inflation.
• The prices of Raw materials are also increasing immensely and the prices of gas is also increasing drastically which is reducing the profit margins of the company.
• The gearing ratio of Campbell soups is very high, it is highly likely that the company might find it very difficult to raise further finance which might reduce the pace of growth. Furthermore, high level of debt might result in the higher interest costs which again decreases the profitability of Campbell Soup.

Opportunities:

• Although Campbell Soup is operating in many geographically dispersed locations, there are still considerable opportunities available for the company to further expand in many other countries as well. India might be the most appealing market for Campbell as the soup consumption is very high there.
• Not only the company can operate in more countries, they can further expand their range of products in North America, China and Russia which seems to be profitable for the company.
• The management might relocate their production plants in countries where the skilled labor is available more cheaply and the production costs are also very low in under developed countries. This strategy is greatly uses by the manufacturing companies in the modern business environment and is quite cost-effective.

Campbell How To Keep The Soup Simmering Harvard Case Solution & Analysis

Threats:

• Campbell is operating in an industry which is very sensitive and Campbell must have to comply with various strict laws and regulations, failure to breach the rules might result in the serious fines and penalties.
• The competition in the soup producing industry is increasing enormously which ultimately narrows the profit margins..............

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