Danone is a global food company operating in 140 countries around the world, primarily in Europe. Danone's strategy is designed to differentiate its products from the competition. The strategy based on differentiation is to create a good perceived as premium by the customer, create brand loyalty and therefore low price sensitivity. It wants to do this through the quality and authentic taste of its products. According to Grant, R.M. (2013), “strategy is the means by which individuals or organizations achieve their objectives.” One of the distinctive features of Danone's strategy has been international expansion (geographical strategy) where Danone also has great success in penetrating new markets such as Russia but also has some failures in China. They initially had many products, then in 1996 Franck Riboud adopted a new strategy to divest and refocus on just four products: fresh dairy, water, baby food and medical nutrition, helping them move towards international expansion into emerging markets markets. They have reduced the range of products from so many to four in order to focus on those products with greater quality and control. They focused on doing what they were good at so they wouldn't get distracted. One of Danone's strategies was a different management style which we can call an emerging strategy which can also be called a realized strategy. Danone's chief executive, Franck Riboud, established a coherent strategic direction for the group which involved the acquisition of 37 companies during 2000 and 2010; it also divested 34 companies in which it divested its entire biscuit business. Danone has benefited from joint ventures that give it access to local knowledge and distribution capabilities that economize its management results... half of the paper..." Porters analysis is useful when trying to understand the environment competitive facing an industry. As highlighted in the case study, also due to the consolidation of the sector, in particular of dairy products, and with so many companies investing in the field of medical nutrition, it is likely that the bargaining power of large retailers increase competitive pressure, so gaining competitive advantage was crucial Porter's five forces of competition include three horizontal forces and two vertical forces which are shown below in the diagram: With the help of Porter's five forces factors we can. analyze the varying profitability of the food and beverage industry between 1973 and 2012 in terms of Porter's five forces factors and sub-factors.Reference:• Grant, R.M. (2013) Contemporary Strategy Analysis – Text and Cases (8th edition) Publisher: John Wiley & Sons, Ltd