Strengths And Weaknesses Of Nestle

Decent Essays
Nestle is one of the largest food and beverage companies in the world. It has, over its long history, been able to construct a variety of different resources in which ultimately have led to strong competitive advantages and capabilities relative to its competitors. (See Appendix 1)
One resource that makes Nestle such a renowned firm is its strong, unmatched brand portfolio of over 2,000 products that are recognized globally. (Appendix 2) Products include Maggi, KitKat, and even Gerber. With such a diverse list of brands, Nestle is able to take advantage of its global reach and has the capabilities to provide consumers around the world with a variety of different products, ranging through all nutrition levels. Because of its diverse list of renowned brands, this resource is immobile due to the fact that it cannot move easily “from one firm to the next”. In the consumer industry, brand reputation and value are key, and because of this, it is not easy to create a replicate of a brand such as Kit-Kat and sell it. The brands that Nestle holds have created large relationships with its consumers, and thus, very difficult to imitate, an attribute of the VRIO framework. Another strength that is emulated within Nestle is its strong R&D network and its direct link to the firm being dynamic. Nestle has the largest R&D network of any food company in the world, with over 34 R&D facilities. As consumers trend more towards healthier products and with a large R&D structure, Nestle has
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