New Product Development and Nestle

Company has no local competition and the company has an opportunity to establish itself as the market leader nicher for the product that is offering.

The following paper is about a company that is at the top level of their industry in selling their products and services. The background of this company describes about what kind of company this is and the types of products and services it provides to their customers. This section also includes the recent performance of this company and the varying aspects of what their target customers and whose is the competition.

This is more than any other food company – both as a percentage of sales, as well as absolute terms (Nestle, The world of Nestlé - (n.d.). Retrieved from http://www.nestle-family.com/our-company/english/assets/downloads/The-World-of-Nestle.pdf), p. 16, para. 6). Nestle has established a rigorous process of product testing which includes scientific nutritional assessment. Each product has a measurable nutritional value to prove its superiority in delivering nutritional benefits. Research and development has given the organization the capability of forming innovative partnerships and collaborations at each stage of the product development process (Nestle, The world of Nestlé - (n.d.)., p. 19, para. 2). The company’s ability to bring together all of its global R&D resources enables Nestle to provide efficient, innovative, and high quality products while adhering to a strict regulatory compliance. Nestlé’s R&D has been influential in the global food market and beneficial for large companies to duplicate their success in creating value and sustainability through research and development.

R&D capabilities. Nestlé invested more than $2 billion in R&D in 2011. Because of its innovation & renovation process nestle introducing new and redesigned products almost every year, its strengthening firm’s competitive advantage.

As aforementioned, Nestlé is the leading company in nutrition, healthcare and wellness, offering nutritious products for every moment and age. It is the largest food and beverages conglomerate in the world, with a portfolio covering almost every food and beverage category, providing consumers a multitude of products to choose from.

Here are some the common challenges which all the organizations face around the world and Nestle Bangladesh Ltd is also facing all of these challenges more or less.

Nestle being the largest global Food & Beverage Company with highest sales and wide range of products can undoubtedly create competitiveness to Kellogg’s Company. The strengths of General

Nestlé is the global leading nutrition, health and wellness company based in Switzerland. Its product line includes baby food, breakfast cereals, coffee, confectionery, dairy products, frozen food, pet foods, yoghurt and snacks with high revenues making it the world’s largest food company. Nestlé operates in 197 countries with over 340,000 employees, in 2014 its group sales account CHF 91.6 billion (USD 99.9 billion), whereas its trading operating profit is CHF 14 billion (USD 15 billion). “The Group’s net debt fell from CHF 14.7 billion to CHF 12.3 billion reflecting strong free cash flow during the year at CHF 14.1 billion more than offsetting the payment of the dividend of CHF 6.9 billion and the initial phase of the current share buy-back programme” (Nestle, 2014).

A supplier group have even more power over an industry if it is dominated by a few companies, there are no substitute products, the industry is not an important consumer for the suppliers, their product is essential to the industry, the supplier differs costs, and forward integration potential of the supplier group exists. Labor supply can also influence the position of the suppliers. These factors are generally out of the control of the industry or company but strategy can alter the power of

Notably, one of the core strengths of Nestlé is the strong brand image they have which inspires trust in consumers. Nestlé are able to build on this reputation to extend their brand categories. Further, recent efforts to follow corporate social responsibility strategies have heightened the firms approach to sustainability, which is aligned to current expectations from the consumer market for firms to take a greater responsibility towards the wider macro environment. Moving on to a critical analysis of the weaknesses of the company, one of the core weaknesses of Nestlé is the content of some of their products, which marks a move away from healthy eating initiatives. For example, Nestlé produce a number of confectionary goods including sweets and chocolate bars. Nestlé will in the future have to work with the UK government to ensure that a clear marketing message is put across for such treats to only be enjoyed alongside a balanced diet. Overall, however, Nestlé’s strengths overshadow their weaknesses and many of the weaknesses are being tackled by strategic actions. Recognition of the firm’s opportunities and threats leads to a discussion of the value of internationalisation and in particular the opportunities present within emerging economies. Further, the development of capabilities and thus

Since then the company has continued to flourish; mergers and acquisitions, global investment and product innovation have seen Nestlé position itself as a “global leader in Nutrition, Health and Wellness” (Nestlé, 2015) and, according to Forbes (2016), it is the largest company within the food industry and the 33rd ranked company on the Global 2000 (Forbes, 2016). Whilst renowned for chocolate, it did not become a global leader on the strength of one product. Its portfolio includes, baby food, beverages, frozen food, prepared dishes and healthcare nutrition. Food and beverages in particular have been prevalent in the aggrandizement of the corporation.

Resources are the source of the firm’s capabilities. Resources are bundled to create organisational capabilities. Some of a firm’s resources are tangible and intangible. Tangible resources are assets that can be seen and quantified. Intangible resources include assets that typically are rooted deeply in the firm’s history and have accumulated over time. Intangible resources are relatively difficult for competitors to analyse and imitate. The four types of tangible resources are financial, organisational, physical and technological. And the three types of intangible resources are human, innovation and reputational (Hanson, D., Hitt, M., Ireland, R. D., & Hoskisson, R. E., 2011, pp. 75-78).

Nestle is a swiss multinational food and beverages company. Its headquarters is located at vevey, Switzerland. In terms of revenue it is largest food company in world. Nestle produces the portified products such as baby food ,bottled water ,breakfast cereals ,coffee ,tea ,dairy products ,ice cream ,frozen food ,pet foods ,and snacks .Nestle provided 167 billion servings of fortified products .Among them 29 brands of Nestle are getting turnover of $US1.1 billions. Nestle is one of main shareholders of L’OREAL company, the worlds largest cosmetic company.

According to me Nestle have only focus on the economic responsibilities and has been concern about the shareholders acceptations than the society. There is a wide space for improvement in the company’s policies towards society and environment.

Nestlé design is to offer sheltered, wonderful, helpful and nutritious nourishments to enhance wellbeing and prosperity of buyers of any age everywhere throughout the world. To address the issues and cravings of today's and tomorrow's customers, Nestlé is unequivocally dedicated to Research and Development (R&D) to enhance items and grow new sustenance’s with particular medical advantages.