I believe Kellogg’s competitive advantage against its competitors is their focus on
innovation and thinking of new foods that the customer will want before their
competitors. The brand loyalty from the customer’s is very strong due to the value
Kellogg’s provides. Kellogg’s was the first in their industry to fortify their cereal with
calcium, iron, and zinc. Part of their organizational culture is their commitment to being
the best in their industry, which is followed by the assembly line workers all the way to
the CEOs. Their values are made up of six terms: integrity, accountability, passion,
humility, simplicity, and results, which everyone in the company follows and strongly
believes in. Another intangible resource that was acquired from the start of the company
is diversity. The founder of Kellogg’s reached across cultural boundaries and employed
women in the workplace. Diversity is still instilled in their company because Kellogg’s
wants knowledge from people of all cultures and experiences therefore they can gain an
advantage on their competitors by applying their employees knowledge to market to a
vast customer base. Thus Kellogg’s intangible resources contribute to Kellogg’s
competitive advantage and why they are still a leader in their industry for over 100 years.
Possibly one of their greatest tangible resources is their global infrastructure. They
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immediately expanded globally when the company was first started. Kellogg’s products
are marketed in 180 countries around the globe.
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Core Competencies:
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1. Valuable- Kellogg’s focuses on nutrition despite the fact that they are operating in
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the processed foods industry providing quality food with nutritious benefits. They
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fortify their cereal with nutrients a person needs to get their day started and also
leads to a healthier lifestyle.
2. Rare- Kellogg’s is not just a cereal company. The company also produces
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crackers, cookies, granola, frozen veggie burgers, and snack bars. But because of
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its concentration on producing the best quality and great tasting cereal for the
vi y re
customer, it is seen only as a cereal company. They offer so many varieties of one
kind of cereal such as frosted mini-wheats (chocolate, blueberry, cinnamon, etc.)
but also an array of different kinds of cereal. Often Kellogg’s cereals take up half
of the cereal aisle alone.
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3. Difficult to Imitate- the diversity and innovation that is part of the culture at
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Kellogg’s is difficult to imitate. Diversity was part of the company since the
beginning, so the longevity of this core competence is almost impossible to
imitate for the competitors. The innovation goes hand in hand with the diversity
is
because the employees come from all different backgrounds and have different
ideas that lead to Kellogg’s unique innovation.
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4. Nonsubstitutable- Quality assurance from Kellogg’s brands is nonsubstitutable
because they are even more stringent than government regulations which is for the
pure benefit of the customer. They often visit the supplier’s plants to make sure
proper sanitation procedures are being followed and that the raw materials meet
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their specifications. They take samples of the product multiple times along the
production process.
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