Taking A Look At Oreo's American Cookie Company

Oreo is a well-established American cookie company. For many years, it has produced for the American market. However, in its attempt to expand into international territory, it discovered strengths and weaknesses in its strategy. We will use their experience to study business strategy, growth potential and company direction moving forward.
Analyzing Oreo’s strategy:
Strength (Internal): The size of Oreo provides great resources in manufacturing. Oreo is a strong brand in America, with a 100 year old recipe, and a strong association with family values. Oreo has “adaptability” to new cultures (Clements, S., Jain, T., Jose, S., Koellmann, B. (2013). Oreo has experience making cookies in China and India. The acquisition of Cadbury, an established

Their internal weaknesses are outweighed, because though they did not have the palette requirements and international presence, with the proper research and continued efforts for exposure they are big enough to put the effort forward. In opportunity, we analyze if the efforts are worth expanding. According to our SWOT analysis Oreo’s Positive internal strengths and positive external opportunities demonstrate it is appropriate to use an “aggressive strategy” going forward (CSUGlobal, 2015).
According to the BCG Matrix Oreo stands as a star opportunity because it is a well-established company that is seeing great opportunities for growth. Oreo’s acquisition of Cadbury enforced its brand position in India. In China, Oreo had already done business and had resource presence; however, it was only when Oreo decided to modify its product that it realized the growth potential. Currently, Oreo can explore new cookie products, but maintain the strength of its family brand to expand. An example of this business strategy is Starbucks and its evolution to teas in the Asian

Oreo and other international cookie makers will have to penetrate the market considering there are other established cookie makers. In the case of India, there a major well established cookie companies such as Parle, Britannia and ITC.
Threat of substitute products: This information allows us to analyze to what degree our product is threatened by the entry of a substitute. The Oreo cookie product can easily be substituted by another flavor or imitation. However, Oreo’s brand is what distinguishes it from its competitors. Oreo is an old brand established on family values. Oreo carries this through its international campaign and as a result strengthens its presence.
Determinants of supplier power: This information allows us to understand the level of power the suppliers have in an industry. In this case, Oreo does not supply a unique product. In addition, Oreo is not an undersupplied product. There may be more product then people in the market. Except in Indian rural areas where supply may be scarce therefore increasing supplier power in those areas will be