Good Example Of Core Competencies And Competitive Advantages Case Study

Mutti S.p.a. Assignment – Part I

The Mutti S.p.a. is increasingly appealing to customers that need fresh and local products that are carbon neutral .The other competitive advantage is in its branding of the tomato products. Right from the start, when the products were identified with two lions, customers became well acquainted with them. Advancement in its canning and processing helped the brand to hit high marks in the local market. In 1951, Ugo Mutti developed an essentially coated aluminium packaging called thimble tube packaging to keep the tomato paster fresh for a longer period. The other competency is innovation, in which special cans have been improvised to keep the tomatoes without sacrificing their flavours. This has made the brand more popular with restaurants to become bulk of the company’s customers. The other important competency and thus competitive advantage has been the company’s focus on quality. By the superior quality, it stands out, and customers are willing to pay for it with trust. The company involves in smooth symbiotic relationship with others to keep its commodity selling abroad. It is also introducing new products to excite its customers and retailers. However, engagement with long term credit partners makes it unlikely to incur financial problems. By the fact that its market share and revenues are expanding, the company will continue attracting more customers and retailers.

Scenario Analysis

The company began at the end of 19th century, making significant advances in the first 50 years. From 1951, with the arrival of Ugo Mutti, it began experiencing rivalry from competitors. Initially, its manufacturing processes became disappointing, until 1990s. In 1970s, it decided to venture in other products for stability in the market. However, the cost of managing the increased employees and other operational obligation coupled with increased stiff competition, made its market niche to begin declining. This made the management to drop other products and focus only on tomatoes. Thus, from 1990s the company made strategic quality commitment to produce tomatoes only. This period was its leap-ahead stage. The strategy has made it be one of the leading tomato companies in the world, increasing revenues and expanding significantly in foreign market despite the last recession. It is now in the same position in the market, as from the start, but better globally.

SWOT Analysis

Issues that should be Addressed
First, the company needs to ensure that it has a sufficient production capacity for its quality products before adding more market niches globally. It has also to address the issues of cross cultural management as it expands globally for smooth human resource management. However, it will be important if its research and development teams travel in the world to search for new ideas regarding product preferences before introducing new products. Importantly, to keep the quality of its products superior, it will have to be continually bringing in new talents or thinking.