New Product Development and Nestle

2127 Words Nov 15th, 2012 9 Pages
Nestle is a company that is operating in food and beverage market. In the last decade nestle is a leading nutrition and health corporation that promise a safe and high quality product to its customers. The company illustrates a significant profit ratio and therefore nestle become a role model for those companies that want to be successful. As a result this report is illustrating why and how nestle have achieved a superior performance
First of all the company have a operation in all around the world which means that they achieve an economy of scale. Apart from this minor information in terms of product offering the company are currently developing a products that are requiring a similar
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So we can easily conclude that research department is one of the main factor that nestle is being successful in the market.
The most striking feature of inbound and outbound logistic are that the company does not use middle firm to its warehousing and distributing its products. Nestle international partner have their own distribution centre’s and warehouses in other words they are kind of integrated forwardly. In that way they are ensuring that all frozen products are remaining quality to its retailers. As a result of this the inbound and outbound chains are running efficiently and therefore its not increasing its cost. Apart from this nestle also provide a special equipment for some of its products to its retailers. For example all retailers have a special freezers for nestle ice creams the reason that they are providing this equipment cause nestle want to also ensure that products are remaining quality and undamaged to its customers. So we can easily concluded that the corporation are really effective to keep products quality while transiting to its retailers and also to its customers.
The corporation promises high quality product to its customers and therefore supplying a quality materials are important. They don’t use vertical integration strategy instead they have a long term perfect relationships with its suppliers. In other words supplier power is not strong
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