Localization Strategy

1816 WordsJun 12, 20128 Pages
The Industry/strategy The industry Nestle will be in is the sector of Food and Beverages, the industry that specializes in the conceptualization, the making of, and delivery of foods. This is the sector in which the major part of the revenue of Nestle is earned. This field reflects the sector in which they have the most knowledge and experience; here lies their core competence. Products sold by Nestle in this industry range from bottled water such as ‘Nestle Pure Life’ to chocolate ‘KitKat’ to frozen pizza’s ‘DiGiorno’ to healthcare nutrition such as ‘Boost’ and many more.(NESTLE MAIN SITE) Nestle main competitors are Kraft foods and Unilever, they posses rather similar characteristics and knowledge Nestle has. The food and beverage…show more content…
Due to all these characteristics in this industry and the assumptions given by the egalitarian ecologies the best strategy for Nestle to pursue is a ‘localization strategy’. This strategy aims at producing products to mainly the local market, which is tailored to the preference of this market. Since Nestle is a big player, it has all the necessary resources and abilities to partner or collaborate with external parties. Trends in eating behavior and health are changing; Nestle therefor has to play towards these changing trends. This localization strategy will be based on several future trends in (healthier) food. On trend which is most in line with the localization strategy is on that is directed to demographics. This meaning that (new) products are also tailored to preferences of different generations such as the Baby Boomers to the Gen-Yers and what other names different generations will get in 2040. These different generations will have different attitudes towards healthy and performance-based eating. This is a major opportunity for Nestle to stay profitable in the future. A second trend that will be embedded in Nestle strategy is to be more ‘Foodie focused’, this means focusing of people who have a redefined in food. A successful strategy Nestle can pursue to
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