Introduction

Mondelēz International, Inc. is an American multinational confectionery, food and beverage conglomerate, with global net revenues of $35 billion in 2013, employing around 107,000 people,manufacturing and marketing delicious food and beverage products for consumers in approximately 165 countries around the world. It comprises the global snack and food brands of the former Kraft Foods including in cookies and crackers, chocolate, and gum and candy .

Industry analysis

According to Robert Grant Contemporary Strategy Analysis 7th edition, the median ROE, which reflects the profitability of a specific industry, illustrate the food production industry in the US has the rate of return on common stockholders’ equity at 6.5% from 1999 to 2007. Thus, its ROE sheds a light on food production’s relatively lower profitability comparing to real estate or investment banking industry. However, since the ROE is fairly tricky as high liability can also cause higher ROE, Porter’s 5 forces model is, for lack of better word, the best way to analysis the food production industry. In the following paragraphs, dissecting the suppliers, buyers, substitutes, potential entrants, and how they combining together inter-playing with the industry competitors that determines the profitability of food production industry that Mondelez is in would be devoted to business. First of all, as for potential entrants, the start up company has always been the main force in potential entrants, since the existing company in other industry seldom choose food production but high profitability industry like real estate etc.. Besides, the existing companies’ former image may hurt the attractiveness to customer. However, though food production needs economies of scales, which considered as a high barrier to entry, in Chinese market, there are over 10% of rate of gross profit, together