Global Business Report: Nestle's Competitive Strategy in Global Market

This report provides an in-depth analysis of Nestle's global business strategy, focusing on its competitive advantages, digital marketing initiatives, and the challenges it faces in the international market. It examines Nestle's key strategies, including high-quality food products, innovation, and operational efficiency. The report highlights Nestle's extensive use of digital marketing platforms such as Facebook, Instagram, and Twitter, and its collaboration with Socialbakers for real-time data analysis. It also discusses the challenges Nestle encounters, such as managing distributed teams, technical support disparities between developed and developing countries, and adapting to diverse cultural environments. The conclusion emphasizes Nestle's unique approach to maintaining its market position through digital marketing and brand image management in a competitive business landscape.

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Introduction
Due to globalization business world has completed changed in terms of expectations,
technology, taste, and preference. It has become very difficult for every organization to maintain
its current position for a long time, especially organization which is in food business sectors like
Nestle. Nestle was established in 1905 with the company merged with Anglo-Swiss Milk
Company (SCRIBD, 2019). This company was set up by two brother George Page and Charles
Page and Henri Nestle and Farine Lactee Henri Nestle. After that, the companies have achieved
great success in expanding their business on the international platform.
Key features of Nestle on global competitive strategy
The main key features which are being used by Nestle organization in order to compete
for the global competition are offering high-quality food product, focusing on innovative food
products, embracing every single opportunity associated linked with digital platform and
increasing operational efficiency by focusing cost-cutting features (Nestle, 2019). Nestle believes
that if an organization wants to survive in this dynamic business environment it has to keep on
improving their capability to tackle external business environment forces.
Extensive use of digital marketing platform by Nestle
Nestle has emerged as the market leader of digital marketing on a global platform in food
and beverage industries. This organization makes extensive use of digital marketing tools like
Facebook, Instagram and Twitter in order to position their new product (Tiago & Veríssimo,
2014). In addition, it is also using this platform to reposition its product in the mind of potential
customers which they recently did in case of Maggi. As per the study, it has been found that
Nestle is utilizing maximum of its marketing budget on digital promotion because they have
understood the change in the current marketing trend. In addition, this organization has tied up
with social bakers which are helping them in dealing with real-time process understanding by
analyzing all the associated information and then convert them into KPI for the Nestle
organization. This helps the organization in taking better decision which helps them in attaining
growth (Socialbeakers, 2019). Also, use of digital marketing platform offers two important
benefits to this organization. First is increasing its global reach from business building point of
view and other is offering cost-effective service in terms of promotion. This organization is using

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Twitter as a mode of two way communication instead of promoting platform by which it can
easily understand the future expectation of the potential customer. This feature offers the
organization a very unique place in the market in which they are operating on the global
platform.
Challenges faced by Nestle organization
Managing business on the international level is not everyone cup of tea, it takes a lot of
efforts in terms of technology, changes adoption and awareness about market because a business
market has become very uncertain. Nestle being a multinational company is also facing various
challenges related to their business. One of the biggest challenges is managing distributed team
on a global platform is that management is not able to properly monitor the working of the team
because management is not able to physically see the team (Caporaso et al., 2011). Due to
Physical absence, it becomes very difficult to understand the exact requirement of the team and
in many cases, there is always a chance of miss communication between management and
distributed team. Another important challenge for Nestle is technical support. Nestle
organization is operating its business in both developed and developing countries. From
developed country, Nestle is receiving great technology support due to their lifestyle
advancement but when it is compared with a developing country, it is not getting the same kind
of technical support from them because they are still struggling with the technology use. Another
challenge for Nestle is that every country has their own culture, believes, language which differs
from country to country so it is impossible for Nestle to use the same kind of strategy or tagline
for all the countries in which they are operating (Mauser et al., 2013). For every single country,
they have to form a different strategy by considering their business environment. In addition,
there are some countries which have a very diverse culture within the country like India where
language and belief change from state to state. In addition, there are some countries which are
very gender biased like Sudia Arabia in which men are considered more superior to the women
and are offered low pay as well as less opportunity to explore their professional life. This kind of
situation is actually impacting the image of the organization on the global platform.

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Conclusion
Every organization has to face challenge to maintain its sustainability in this competitive
business market. Similar situation is with Nestle organization but this organization has
introduced very unique strategy of position their companies image in the minds of the potential
customer in such a way that some part of negative impact gets overshaded by the positive part of
this organization with the help of digital marketing.

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References
Caporaso, J. G., Lauber, C. L., Walters, W. A., Berg-Lyons, D., Lozupone, C. A.,
Turnbaugh, P. J., ... & Knight, R. (2011). Global patterns of 16S rRNA diversity at a
depth of millions of sequences per sample. Proceedings of the national academy of
sciences, 108(Supplement 1), 4516-4522.
Mauser, W., Klepper, G., Rice, M., Schmalzbauer, B. S., Hackmann, H., Leemans, R., &
Moore, H. (2013). Transdisciplinary global change research: the co-creation of
knowledge for sustainability. Current Opinion in Environmental Sustainability, 5(3-4),
420-431.
Nestle. (2019). Strategy [online]. Retrieved from: https://www.nestle.com/aboutus/strategy
SCRIBD. (2019). Introduction [online]. Retrieved from:
https://www.scribd.com/doc/21544545/Introduction-Nestle-Was-Founded-in-1866-by-
Henri-Nestle-And
Socialbeakers. (2019). Nestlé & The Digital Acceleration Team Take Social to the Next
Level with Socialbakers [online]. Retrieved from: https://www.socialbakers.com/social-
media-content/client-stories/nestle/
Tiago, M. T. P. M. B., & Veríssimo, J. M. C. (2014). Digital marketing and social media:
Why bother?. Business horizons, 57(6), 703-708.