The Kellogg Company SWOT and PESTLE Analysis

SWOT analysis is a fundamental evaluation model that assesses the internal and external factors and their impacts on the company's micro and macro environment. Precisely the SWOT/TOWS analysis is a structure, utilized to evaluate a company's competitive position by recognizing its internal strategic factors like strengths and weaknesses, external strategic factors like opportunities and threats.
The traditional breakfast habit of having bacon and eggs in the US and UK drastically got substituted by a quicker and healthier option - Cereals. The Kellogg’s cereals were accepted worldwide for its nutritive value, quality and ease of consumption. The company’s innovative methods of introducing healthier breakfast alternative not only made the brand a strong market leader in the industry but presented the company with an edge over its competitors. The company’s target market consists of consumers looking for instant yet healthy breakfast meals.
Strong global presence, influential brand awareness, loyal customers, sustainable growth, imperative acquisitions, a market leader, excellent marketing strategies, high quality of cereals, varied flavors especially in Kellogg’s cereals are some of the greatest strengths of the Kellogg’s company.
Though Kellogg’s represents itself as a healthier alternative especially for breakfast, high sugar content and syrups in its meals are the key weakness of the company that has negatively influenced consumers. Occasionally it has attracted government agencies to scan their product’s nutritive value.
With an increasing urge amidst people to have healthier and easier lifestyle, the Kellogg’s company has huge opportunities to penetrate the market segments that demand varied healthy food products. Today, people in the urban areas are witnessing a frenetic and busy life schedule making them rely on ready-to-eat food options. Hence Kellogg’s can invest further in innovative and healthier food products and take full advantage of this scenario.
FMCG & Food industry is one of the highly competitive industries, with so many new entrants, existing big players and even local manufactures; Kellogg’s faces a stiff competition. Apart from high competition, a threat of counterfeit products and outdated products being sold in retail shops can damage the brand reputation extensively.
The SWOT analysis for Kellogg’s is presented below in the SWOT Matrix followed by detailed analysis:

Strengths	Weaknesses
1. Strong positioning amongst customers 2. Employee Resource Groups to drive business sustainability and organizational success 3. Multinational presence with global manufacturing and supply chain capabilities 4. Strong commitment to nutrition 5. Emphasis on sustainability	1. Lack of segregation in the product portfolio 2. Dependence on few large consumers 3. High level of indebtedness
Opportunities	Threats
1. Expansion in emerging markets 2. Diversification of product portfolio 3. Rapid market growth in ready-to-eat cereal category 4. Stepping into metaverse to attract consumers	1. Intense competition in the food industry 2. Food regulations by the government 3. Kellogg strike compounds supply chain issues

Detailed SWOT Analysis of The Kellogg Company

The current trends of the cereal industry are health awareness, customer buying, and spending patterns. With audiences opting for healthier food options, the cereal industry has introduced numerous healthier products and witnessed tremendous growth over the past few years. Here is a discussion of other external influencers like political, economic, social, technological, legal and environmental, their impression on the cereal industry and largely on the Kellogg’s company.
The PESTLE / STEEPL / PEST analysis report is a structure to examine the consequence of external factors on the macro environment that influences the business of the Kellogg’s. The PESTLE analysis is a useful technique to study the impact of influencers on the Kellogg’s business model, growth trajectory, its business case, and market strategy.
Manufactured in 18 discrete countries and distributed over 180 countries, Kellogg’s is highly influenced by diverse political and legal factors. Consumer health issue is one of the key factor that drives political attention, the government’s high interest in a healthy society is the main basis for political intervention in the cereal industry. Big players like Kellogg, Quaker, Nestle etc., are under the bird’s eye view of the government agencies constantly checking for quality and nutritive value.
The drastic transition of consumers from traditional breakfast habit to consumption of cereals, have bestowed a tremendous economic growth for The Kellogg’s company. Though Kellogg’s already possesses a global footprint, changing food styles creates a huge opportunity for economic growth in the emerging countries.
The Kellogg’s brand is a socially responsible brand; one of its core social initiative is “Fighting Hunger”, through this the company collected donations for rendering food for the hungry and provided breakfast for various schools. Another remarkable initiative is Kellogg’s – small changes, big differences. That endeavors to efficiently utilize the natural resources during the production process, limiting its influence on the environment and ensuring not to compromise on quality. They guarantee to use minimal energy and water resources and 100% recyclable paper fiber for packing purpose.
The cereal industry is propelling with progression in technology; Modernization in technology has helped the process of production, packing, and delivery becomes highly systematic, computerized and effective. Technology has aided the industry to advertise and communicate with their consumers efficiently. It also supports in adding a scientific approach to the production of food that increases its nutritive value; Kellogg’s was the first company to have calcium, zinc, and iron in its cereals.
The PESTLE / PESTEL/ STEEPL Analysis of the Kellogg’s company is presented in a nutshell below, followed by detailed analysis:

Political	Economical
1. The UK’s exit from the EU may have a negative effect on global economic conditions 2. Suspension of business in Russia amidst the war	1. Strong GDP growth in emerging markets 2. High-cost pressures impacting finances
Social	Technological
1. Growing acceptance of private labels by consumers 2. Growing trend towards plant-based diet	1. Mobile apps for sales collaboration 2. Usage of spend analytics for marketing budget optimization
Legal	Environmental
1. Lawsuits regarding misleading product descriptions and advertisements 2. Court challenge against UK HFSS rules	1. Accused by Greenpeace over usage of genetically engineered ingredients and deforestation 2. Utilising recyclable paper liners in boxes

Detailed Pestle Analysis of The Kellogg Company

1. The SWOT and PESTLE analysis report of the Kellogg's company substantiates a comprehension of the intricate micro and macro factors influencing the brand and its operations.
2. The SWOT analysis report incorporates internal and external analysis. Internal analysis manifesting the Kellogg's strengths and weakness, external analysis helps to identify the opportunities for progress and threats that can hinder growth.
3. The Pestle analysis highlights the current trends in the cereal industry with an explicit depiction of the external factors and its influences on the industry and chiefly on the Kellogg's company.
4. A detailed portrayal of how influencers like political, economic, social, technological, legal and environmental factors have shaped Kellogg’s innovative business model.
5. Perforations into Kellogg's business diversification, extracting its key business segments and highlighting its major competitors.
6. Review of the acquisitions, mergers, capital raising, equity transactions, alliances or partnership ventures that Kellogg's consented with deal valuations and the business objectives or goals that were achieved by them.
7. Comprehensive company analysis to gather information about company profile, number of employees, business model, business plans and marketing strategy, including an abstract information of Kellogg's founders, its corporate headquarters, owners & stakeholders, share price, value proposition and revenue jumps.
8. Understanding of Kellogg's USP or unique selling proposition, mission statement and vision statement that has set a benchmark in the cereal industry.
9. Insights into Kellogg's business model, along with further categorization and analysis of key business segments and business case study.
10. Crisp synopsis of the Kellogg's core competencies that added competitive advantage to the company over its major competitors.
11. Identifying the key performance indicators and success factors that contributed to the fullness of the company.