Nestle Company Analysis: Competitive Advantage and Future Prospects

This report provides a comprehensive analysis of Nestle, a Swiss transnational food processing company. The report begins with an introduction to Nestle, including its history, brands, and tagline. It then delves into an external analysis using the PESTLE framework, examining political, economic, social, technological, and legal factors. Following this, an internal analysis is conducted using the SWOT framework, identifying the company's strengths, weaknesses, opportunities, and threats. The report then identifies Nestle's competitive advantages, such as its market leadership, brand recognition, and economies of scale. The sustainability of these advantages is also discussed, considering factors like customer base, brand image, resource advantages, and scope of expansion. The conclusion summarizes the company's potential for growth and its ability to maintain a competitive edge, increase market share, and explore international opportunities. References from academic sources are also included to support the findings.

NESTLE
COMPANY

INTRODUCTION
 Nestle company
 First phase: About Nestle.
 Second part
a.) External: Pestle
analysis.
b.) Internal : SWOT
analysis.
 Third part: competitive
advantage.
 future sustainability of
the competitive
advantage.
 Conclusion

ABOUT NESTLE
 Swiss transnational
company .
 Headquarter in Vevey,
Switzerland.
 Founder: Henri Nestle.
 Founded in: 1866.
 Subsidiaries: Nespresso,
Nestle purina Petcare
company.

ABOUT NESTLE
 More than 2000 brands.
 Industry: Food processing.
 Tagline: Good Food, Good
life.
 Logo: based on the family
coat of arms
Featured by single bird
sitting in nest.

EXTERNAL ANALYSIS ( PESTLE ANALYSIS)
 Political factor:
a.) Diversification in community.
b.) Different rules and policies.
c.) challenge related to government
Instability.
d.) stability in the economies
Such as China & India.
 Environmental aspects
a.) Quality standards.
b.) campaigns

EXTERNAL ANALYSIS ( PESTLE ANALYSIS)
 Economic factor
a.) Research and development
b.) Boost economic worth.
c.) Offers products
d.) change in inflation rate
 Social factor
a.) different Life style and culture
of consumers
b.) Maintain quality of the products.
c.) offers product on local platform
(Blockeel et al., 2016).

EXTERNAL ANALYSIS ( PESTLE ANALYSIS)
 Technological factor
a.) latest technologies
b.) Considered social media channel
c.) reduced gap between customers
and company
d.) maintain standards.
Legal factor
a.) labor laws affect operations
b.)less wages
c.) Policies in context to foreign trade

INTERNAL ANALYSIS ( S-W-O-T ANALYSIS)
Strength
a.) Good brand image
b.)wide variety of products
c.) Effective services
d.)High ratio of satisfied customers.
e.) Effective distribution channel
(Baker, 2016).

INTERNAL ANALYSIS ( S-W-O-T ANALYSIS)
 Threats
a.) More
competitors
Such as Kellogg,
Unilever
b.) high
substitution rate
c.) difficult to
attain large
market area
d.) cost of the
products

INTERNAL ANALYSIS ( S-W-O-T ANALYSIS)
Weakness
a.) different brands
b.) more competitors
c.) rate of Acquisition
Opportunities
a.) International scope.
b.) Bring improvisation in
distribution channel
c.) latest technology
(Bull et al., 2016).

COMPETITIVE ADVANTAGE IDENTIFIED
 Leading the
market.
 One of the
biggest brand.
 Large scope of
Nestlé
 Wide
customer base
(Grant, 2016).

COMPETITIVE ADVANTAGE IDENTIFIED
 Company maintains
scale of economies
in manufacturing,
marketing and
administration.
 It helps the
organization to lead
in terms of
innovation and
Maintain portfolio
flexibility
(Wensley, 2016).

STRENGTHS, WEAKNESSES, SOURCES AND
FUTURE SUSTAINABILITY OF THE
COMPETITIVE ADVANTAGE
 Large customer base can
a.) assist in attaining
growth.
b.) Will boost profits.
c.) Reduce the competition
level.
 Good brand image
a.) enhance the product
segment.
b.) attract new customers

STRENGTHS, WEAKNESSES, SOURCES AND
FUTURE SUSTAINABILITY OF THE
COMPETITIVE ADVANTAGE
 Resource advantage
a.) ability to generate
strategic resources.
b.) reduce cost.
c.) boost performance
 Scope of expansion
a.) enhance growth.
b.) maintain customer base
(Burns, Bush and Sinha,
2014).

CONCLUSION
 It is concluded that
a.) company can attain growth.
b.) maintain competitive advantage.
c.) boost profits.
d.) enhance market share.
e.) opportunity to grow in the
international platform.
f.) can enhance the demand of products

CONCLUSION
 Burns, A.C., Bush, R.F. and Sinha, N., 2014. Marketing research (Vol. 7). Harlow: Pearson.
 Wensley, R., 2016. The basics of marketing strategy. In The marketing book (pp. 75-107). Routledge.
 Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
 Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
 Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K.,
Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities
and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem Services, 17, pp.99-
111.
 Blockeel, C., Drakopoulos, P., Santos-Ribeiro, S., Polyzos, N.P. and Tournaye, H., 2016. A fresh look at
the freeze-all protocol: a SWOT analysis. Human reproduction, 31(3), pp.491-497.
 Nestle, 2019.Good food, Good life.[Online]. Available at: https://www.nestle.com
(Accessed on 3April 2019).