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Strategic Management Nestle

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Introduction This report will focus on Nestle SA and will look into the industry the company is competing in. Based on various strategic analysis models the report will evaluate why the company has been so successful over the past century and how is Nestle managing to sustain constant growth and achieve great performance in the food and beverage industry. Company Background The Nestle Company started in 1866 with a one man’s idea and then it turned into one of the world’s biggest corporations. Henri Nestle was a pharmacist and he decided to develop a formula for a substitute of the mothers’ milk. The formula was so successful that there was a demand for it on different markets and it was attracting interests from different companies …show more content…

Research and development is also a major strength of Nestle. There are centres in 17 locations worldwide that are concentrated on researching new technologies and ways of innovative new products or to improve already existing ones. Weaknesses One of the major weaknesses that Nestle is facing is the mature market they are operating in. When the market is mature it can give stronger competition to the new entrants. As well the company should focus on consumer research on different target markets for different products. Not every product is right for every market and Nestle should focus on consumer research in order to avoid that weakness. Russia had been a very difficult market for Nestle and because of the big area the Russian market is covering it is always affecting the general performance of the company. Opportunities The world is now recovering from a very bad recession from the past few years. Thus the demand for Nestle products should increase as customers’ budgets are increasing too. Because the consumers’ budgets are increasing customers are getting more and more health oriented and health conscious. Therefore there is a big opportunity for Nestle to introduce more health-based products before the competition. On the other side in some South Asian countries like Pakistan and Bangladesh, consumers are mainly driven by the price rather than health or nutrition and there is a opportunity for Nestle as well to introduce a variety

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