Strategic Management: In-depth SWOT Analysis of Nestle Corporation

This case study provides a strategic management analysis of Nestle, focusing on a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. It highlights Nestle's strengths, including its famous brand, large product portfolio, and global reach, while also addressing weaknesses such as brand management challenges and controversies. Opportunities for growth include distribution channel expansion, while threats are primarily from high market competition and substitutes. The analysis concludes that Nestle needs to innovate to minimize challenges and maintain profitability, emphasizing the importance of continuous product development to compete effectively in the market. This assignment solution is available on Desklib, a platform offering various study tools and resources for students.

Running head: strategic management
Strategic Management

Strategic management
SWOT ANALYSIS OF NESTLE
It has been seen that company is considered as one of the largest companies and it is seen
that there are various challenges that are faced by the company. Like high level of competition in
the market.
Strength
If there is Strength in the organization then it can be easy to conduct the activities. The
strength of Nestle is that it is considered as a famous brand in the market. The company owns the
largest renowned, trusted and worldwide accepted brands that help to ensure that the
organization has edge over many competitors in the market. Also it has been seen that the
company has a largest product portfolio in the beverage and food sector. The company has a
worldwide reach and it is seen that Nestle focuses on the requirement of the buyers that vary
from region to region. This also creates a good image that enhances the customer base. By
focusing on the research and development it has been seen that company focuses on creating new
products according to the need of the customers so that high competition level prevailing in the
market can be reduced (Moura, Branco and Camoesas, 2015).
Weakness
It can be evaluated that there are various brands under the same group so to manage all
the brands is considered as a difficult process and also it enhances the conflicts in the company.
Also there are many controversies that take place in the company. The controversies that are
prevailing in the market are related to baby formula boycott and also the child labor that give
adverse impact on the overall brand (Hunt, 2014). So, to reduce this issues the company should
focus on maintaining the quality so that growth can be achieved.
Opportunities
As the level of competition is enhancing it has been seen that there are various
opportunities that are available with the company. Nestle has the opportunity to distribute its
products by focusing on the distribution channel as it can help to achieve goals and objectives of
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the company. Also the company has the opportunity to expand the operations as there are many
resources available with the company (Peck e al., 2013).
Threats
The company is facing the threat just because of the high level of competition the
company. In this sector it has been seen that buyers are high and also he loyalty is low if
comparison is made with the other sector. The major threat is from the competitors who are
considering the latest technologies to conduct the activities of the company. Due to this there are
many substitutes available in the markets that are taken into consideration by the competitors. To
compete with the other competitors from the same sector it is seen that company should offer
products at low price so that competitive advantage can be achieved (Payaud, 2014).
So, it can be concluded that to survive and achieve growth in the market the company has
to introduce innovative products so that it can be easy to minimize the challenges. If company
has to achieve profitability it is important to minimize the level of competition by focusing on
innovation of the products.
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References
Hunt, S.D., 2014. Marketing theory: foundations, controversy, strategy, and resource-advantage
theory. Routledge.
Moura, A., Branco, M. and Camoesas, M., 2015, June. NESTLÉ, a global firm and its customer
relationships. In IMC 2015 International Management Conference 26th June 2015 (p. 96).
Payaud, M.A., 2014. Marketing strategies at the bottom of the pyramid: Examples from Nestle,
Danone, and Procter & Gamble. Global Business and Organizational Excellence, 33(2), pp.51-
63.
Peck, H., Christopher, M., Clark, M. and Payne, A., 2013. Relationship marketing. Taylor &
Francis.
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