Nestle Swot

1886 Words8 Pages
Introduction: Nestlé’s lineage dates back to 1867 when Henri Nestle founded the company Ste Henri Nestle and was responsible for producing infant food composed of milk, grain, and carbohydrates. Before Nestle even knew it, the company grew substantially and was required to build plants in each major market it was located in, so that to ensure efficient production and distribution. This way the company could gain sustainability within its home market, as well as in its European-based markets. The gain in Nestlé’s rapid popularity was mainly accounted towards large numbers of doctors all over Europe highly recommending the company’s product for malnourished infants. Subsequently, Nestle also engaged in mergers, geographical expansions,…show more content…
With Nestle being recognized worldwide, providing a wide variety of products ultimately results in greater flexibility and leverage for organizational decisions. In addition, existing products are prone to become stronger and gain greater value through innovations and R&D. The stronger Nestlé’s brands are the more value they can create, not only for their consumers, but also for their shareholders.
Weaknesses:
* Standardization of products – since standardized products and images are not sensitive to cultural differences, misfortunes accruing to global brands – such as Nestle – can reverberate across entire product ranges and tarnish corporate reputations either on a region-wide or worldwide scale. Therefore it is crucial for management to carefully analyze the cultural context in which it is operating. * Weak brand image in U.S. – a strong controversy over Nestlé’s aggressive marketing efforts to 3rd World mothers resulted in a much publicized boycott in the U.S. that still persists today within the diverse American culture. Another issue that adds to a weaker brand image – majorly by the U.S.- is that concerning the chocolate bar Kit-Kat. Even though Kit Kat is produced worldwide by Nestle, it is not the case in the U.S. where Hershey Inc. has acquired the license to produce the candy bar.

More about Nestle Swot

Get Access