Business Strategy of Nestle: Key Core Capabilities and Business Level Strategies

Running head:
Business strategy

Table of Contents
Introduction.................................................................................................................................................3
Key core capabilities of Nestle.....................................................................................................................4
Business level strategies of Nestle...............................................................................................................6
Conclusion...................................................................................................................................................9
References...................................................................................................................................................9
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Introduction
The report focuses on the key products, services, and customers of Nestle Company
which has been selected in the paper. Nestle is one of the leading companies which deals with
various food and beverage products and services. The firm is rendering its products and services
across the world to attain the competitive advantages in the market. In today’s era, the firm is
expanding and flourishing its business across the world by offering innovative and tasty products
to the customers. Further, the report depicts the business level strategy and core capabilities of
the company. The key core capabilities are an essential part of the organization because it helps
to make a strong position in the competitive market. It describes that how business level
strategies are leading to core capabilities in the world. The firm also uses corporate-level
strategies in order to overcome the competitors in the international market (Nestle, 2016).
Background of Nestle
Nestle is a Swiss international food and drink corporation with its headquartered is
located in Vevey, Vaud Switzerland. It was incorporated in 1867 by Henry Nestle who was a
trained pharmacist. It is one of the biggest food companies in the world measured by the revenue
and profit. The firm deal with various products such as medical food, baby food, breakfast
cereals, bottled water, coffee and tea, frozen food, pet foods, ice cream and dairy products etc.
Nestle brands include Nescafe, Smarties, Kit Kat, Maggi, and Nespresso. It is one of the biggest
shareholders of L’Oreal which is the biggest cosmetics company. The company manages and
operates 447 factories in more than 194 countries.There are approx 339,000 employees
employed in the firm. In today’s era, the corporation is increasing its revenue and profit with
maintaining sustainability in the organization. The firm introduced its chocolates in 1904 in the
market (Nestle, 2016).
In 1930, Nestle introduced enormous new products such as Nescafe and Milo. Therefore,
the company is increasing its revenue and profit day by day. Along with this, the firm uses
marketing mix strategies, product growth strategies, and diversification strategies in order to beat
the competitors in the market. Apart from this, the company uses personal selling, advertisement,
and promotional strategies in order to promote and enhance the food products in the global
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market. In today’s competitive world, Nestle is number one food Group Company across the
world. The main target market of the firm is kids, young girls and boys who buy food products
on daily basis. The corporation uses several strategies to attract more people and to differentiate
its products from the competitors in the market. Apart from this, marketing mix strategies are
used by Nestle to stand out against the rivalries in the competitive market (Nestle, 2016).
Product and service description of Nestle
The company has approx 8,500 brands in over 80 countries in the world. Nestle provides
a wide range of food products and services to the customers across the world. The products and
services include coffee, chocolates, Nestle water, beverage products, frozen meals, ice-cream,
baby food, tea, and pet foods. In this way, the firm has been able to maintain a dynamic position
in the competitive market. Along with this, the organization uses innovative and new
technologies to produce delicious food products to the customers across the world. In addition,
home delivery is also provided by the firm to promote the products and services across the world
(Nestle, 2016).
Key core capabilities of Nestle
Nestle is one of the largest brands in the international market. The key core capabilities of Nestle
have been discussed below.
 The firm maintains a unique team to understand the needs, expectations, and desires of
the customers in the market. It helps to maximize and increase the revenue and profit of
the firm.
 The firm has the capability to produce and launch more nutritional food and beverage
products in the competitive market. Further, Nestle has been able to attract and retain
more human resources in the international market. It is one of the biggest core
capabilities of the firm.
 Along with this, the company is able to win and develop trust through quality among the
customers in the world. This core capability provides a chance to increase the number of
customers in the market.
 In addition, Nestle follows positioning strategy to make a strong financial position in
front of customers in the competitive market (Varma & Ravi, 2017). Furthermore, the
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