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Team 1: Seunghyun Lee, Jingkai Li, Yuan Cheng, Will

Coval, Akash Miriyala, Zhenyu Wei

Consumer Packaged Goods Industry (CPG)

Industry Valued at $2 trillion in the U.S.


Mature and Growth is slow
Requires profound understanding of
buyer preferences
Rise of Technology influence on
shoppers (SM and Apps)
Pressure to build economies of scale

General External Environment


Technolo
gical
Change

Specific
Internati
onal
Events
Abolition
of Milk
Quotas in
EU

Legal/Po
litical
Conditio
ns
Rising
Trade
Protectioni
sm
Changing
Tax
Regimes

Digital
Technolog
y

DAN
ONE

Demogr
aphic
Trends
Digital
Customer
s
New
MiddleClass
Customer
s

Cultural
Trends
Econom
ic
Climate
Milk Price
Inflation
Exchange
Rate

Healthy
Lifestyle

Porters Five Forces Model


Suppliers

Low

Entry
Low

Buyers

Low

Danone

Rivalry
High

Substitutes

Moderate

Learning from Numico

Manufacturing Plant in Minster

Education Danone Institute

Corporate Strategy Strategic Alliance


Nonequity, Equity, & Joint Venture
Motivation for Danone

Danones Value
Improve current operations
Economies of Scale
Learning from Mengniu
Risk & Cost Sharing

Shape competitive market


Technology standards
Tacit Collusion

Facilitating entry & exit


Low-Cost Entry
Test the Market

Downside Risks

Strategic Alliance with Mengniu


Rareness of the Alliance
Rare resources & Capabilities

Costly to imitate
Social Complexity

Organized to exploit
Investing each other
Contracts