Nestle' Case Study

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Background The dairy products at Nestlé are a big driving force for the growth of the company 's sales. With the health kick of the many individuals around the world, it pushes the innovator and renovators of Nestlé to reach new height in finding better and healthier products for their consumers. More recent, dairy division became a big potion of the company 's earnings, so it would be best for Nestlé to focus a big portion of their core competences and resources on the fast growing dairy division. Which leads us into the most recent yogurt produced by Nestlé 's, which is the LC1. I. OPPORTUNITY AND THREAT ANALYSIS Comparing Nestlé with the environment concerning which it would determine the…show more content…
However, it is difficult for the new entrant Total 1 2 III. Supplier Rate Weight R x W Comment 1. Number of supplier 1 0.5 0.5 There are vast amount of supplier in the market. Nestlé can switch from one supplier to another easily. 2. Size of supplier 2 0.5 1 Nestlé demand a huge amount of supply. The more reliable sources may grab more attention by Nestlé. Total 1 1.5 IV. Buyer Rate Weight R x W Comment 1. Number of Buyer 5 0.7 3.5 Increasing in health conscious lead to higher demand by consumer 3. Price sensitivity 3 0.3 0.9 Functional food is inexpensive product. Customer can buy these daily goods but can eat another food instead of functional food. Total 1 4.4 V. Substitute Rate Weight R x W Comment 1. Uniqueness of product 4 0.5 2 There are high competitions in vary kind of substitute product which would be effect within the functional product. 2. Price performance relative 5 0.5 2.5 High performance would be one kind of value added in the price of goods. Total 1 4.5 Figure 4 Industry Attractiveness Factor Analysis Summary (IAFAS) Factors Rate Weight R x W Rivalry among Industry 3.5 0.3 1.05 New Entrant 2 0.1 0.2 Supplier 1.5 0.1 0.15 Buyer 4.4 0.3 1.32 Substitute Uniqueness of the Price 4.5 0.2 0.9 Total 1 3.62 Figure 5 Environmental Weight Score Factors Rate Weight Weighted Score EFAS 3.74 0.6 2.24 IAFAS 3.62 0.4 1.45 Total 1 3.69 III.

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