RBV Analysis of Kraft Foods Case Study

Pages: 4 (1488 words)  ·  Bibliography Sources: 1+  ·  Level: Master's  ·  Topic: Business - Management


[. . .] 68% share of the cheese market in North America (CSI Market, 2014).

Intangible resources

Intangible assets are assets and resources that cannot be physically held. These may also be considered as equally important is the physical assets, with a leg can be more difficult to assess.

Technical assets

The organization places a greater reliance on its internal technical systems. The company as a range of different IT systems, some of which operate internally, and some of which tie up with trading partners, for example the organization works with WalMart, within the WalMart inventory management system, allowing them to undertake forecasting, and to aid with production planning. This is particularly useful when it is considered that WalMart are the largest customer, accounting for approximately 26% of all Kraft's sales (Kraft, 2014).

The organization also has other technical assets. For example, one is the "big Fork Little Fork" app which has been released for iPad, is also available for personal computers, costing $1.99 when it was released, is a small program that provides users with information and recipe so they can use Kraft Foods in a nutritious manner (Kleinberg, 2011). Organizations that are able to gain access to social media, and engage with their customers are likely to enhance their brand values (Kotler & Keller, 2014).

Intellectual property

Intellectual property is a very broad category, and includes brands, the company reputation, patents and goodwill. The organization has a well-known, and well respected, brand image. In 2011 a brand survey undertaken by Harris interactive found that Kraft came in 7th place, demonstrating not only high level of awareness, but a significant level of trust within the brand (Alvarez, Gonzalez, & Daguerre, 2012). This is particularly notable result, as the server itself was undertaken with 30,000 people, and therefore highly likely to be representative of the overall brand reputation of the firm.

The firm holds a significant amount of trademarks and patents relating to the organization. The trademarks may be argued as being some of the organizations' most valuable assets, even selling tangible. These include trademarks such as Cool-Aid, Kraft, Cheez-whiz, A.1, Miracle Whip, Lunchables, Planters, Cracker Barrel, Crystal Light, and JELL-O, just to name a few of the most prominent. These are assets but only in terms of the revenue that is produced out of the organization, but the way in which some of these are also licensed to other organizations, for example the licensing of these brands to third-party companies in different countries. In total, it is estimated that the value of the intangible assets, not including goodwill, a Munster $2,209 million at the end of 2013 (Kraft, 2014). The organization also has significant amount of goodwill, which was estimated in the 2013 annual accounts as having a value of $11,505 million (Kraft, 2014).


Another significant intangible asset is the way in which the organization works with many of its customers and suppliers, with cooperative relationships. The cooperative approach towards business scene with WalMart, through the sharing of information is already been discussed under the information technology section. Another area of partnerships can be seen in the way the organization enhances its brand reputations create a number of different sponsorships, including the role of the organization as a Major League Soccer sponsor, and the organization being one of the four major sponsors on the LPGA tour as well as other sponsorship deals (Kraft, 2014).


The organization has a significant amount of resources as competencies embodied within those resources, which are combined in a manner to allow the organization to adapt and develop, meeting market needs in a responsive way, and giving the firm sufficient flexibility to continue to change and adapt as needed.


Alvarez, Jesus Timoteo; Gonzalez, Sonia A. Ferruz; Daguerre, Jesus Calzadilla, (2012, Dec), Pricing and Valuation of Intangible Assets, Journal of Modern Accounting and Auditing, 8(12), 1780-1788

CSI Market (2014), Kraft, accessed at http://csimarket.com/stocks/competitionSEG2.php?code=KRFT on 17th Sept 2014

Kleinberg, Adam, (2011, Jan), Why Every Brand Needs an Open API for Developers, accessed at http://mashable.com/2011/01/04/brand-open-api-developers/

Kotler Philip; Keller Kevin, (2014), Marketing Management, Prentice Hall

Kraft Foods, (2014), Form 10k, accessed at http://files.shareholder.com/downloads/ABEA-3QV6OO/3479462482x0x730413/145F2E19-6958-4EA2-9111-B31F2E8CEF47/filing_10K.pdf on 17th September 21014

Kraft Foods, (2014), accessed at http://www.kraftfoodsgroup.com/home/index.aspx on 7th September 2014

Mintzberg Henry, Ahlstrand Bruce, Lampel Joseph B. (2011), Strategy Safari: The Complete Guide… [END OF PREVIEW]

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