Marketing and Nestle Essay

1604 Words7 Pages
The paracrisis: The challenges created by publicly managing crisis prevention
A Case Analysis

Communication is faster than ever due to the advent of the Internet and social media which are venues for forum, interaction and information/issue dissemination, Today, nearly half a billion people around the world utilize the Internet. In the United States alone, about 155 million Americans access the Internet at home, with some citizens accessing the Internet only at work. Internet use by consumers in other countries, especially Japan (49 million users), the United Kingdom (29 million), Germany (36 million), Brazil (25 million) and France (31 million), has escalated rapidly. (Ferrell, Thorne, & Ferrell, 2012). The increasing number of
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Nevertheless, the food and beverage industry has been relatively less affected when compared to other industries. This is mainly attributed to the fact that food products continue to be essential to consumers in spite of the slowdown. A comparison between the S&P 500 and the Dow Jones US Food and Beverage Index in 2008 is testimony to the resilient nature of this industry. In 2008, the S&P 500 declined 37.6 percent against a fall of 22.9 percent by the Dow Jones US Food and Beverage Index. (IMAP, 2010). Second, people are becoming more health-conscious and are now demanding nutritious products in which Nestle has the capability to produce. Company’s response to these major opportunities is superior. However, reputational attack initiated by Greenpeace could damage Nestle’s franchise value and could result in loss of business and consumer trust. My analysis of the surrounding opportunities and threats is presented in tabular form below:
Table 2. External Strategic Factor Evaluation
Key External Factors Weight Rating Weighted Score Comments
(Rating Values)
Opportunities:
1. Resilient food (and beverage) industry
2. Increasing importance of health and nutrition
40%

20%
4

4
1.6

0.8
1 -poor response
2 -average response
3 -above average response
4 -superior response
Threats:
1. Reputational attack from across social media sites 40% 1 0.4
Total 100% 2.8 Conclusion:
Firm’s strategies take advantage of

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