Strategic Management Report: Analysis of Nestle's Business Strategies

This report provides a strategic analysis of Nestle, a major international food processing company. It begins with an overview of Nestle's products, business, and corporate values. The report then examines the various strategies employed for different product lines, including the identification and evaluation of key competitors. A significant portion of the report focuses on Nestle's Nespresso product, analyzing its competitive advantages, sustainability, and strategies for maintaining market leadership. The analysis extends to Mr. Jean-Paul Gillard's role in acquisitions and strategic alliances, exploring the rationale behind these decisions. Furthermore, the report delves into the management and operational strategies of Nespresso, considering alternative approaches and lessons learned from the company's overall product strategies. The report concludes with a summary of key takeaways from Nestle's strategic approach.

Strategic Management

Table of content
MAIN BODY 3
P1 Explain and evaluate Nestle products, business and corporate values..............................3
P2 what are the various strategies for these products? Name and evaluate two competitors
for each...................................................................................................................................3
P3 Name two main competitors of Nestle Nespresso product. What is competitive
advantage? Is it sustainable? How Nestle can maintain its competitive advantage for their
products..................................................................................................................................3
P4 Evaluate how and why Mr. Jean-Paul Gillard adopted and function acquisition and
strategic alliance in the market...............................................................................................3
P5 how do you think Mr. Jean-Paul managing and operating the Nespresso product
strategies and tactics? State any alternative strategies...........................................................3
P6 what general lesson learned from the Nespresso products strategies?..............................3
REFERENCES...........................................................................................................................3
Books and Journals.................................................................................................................3

MAIN BODY
P1 Explain and evaluate Nestle products, business and corporate values
Nestle is the well known Swiss international food processing company of Switzerland
provide wide variety of products to its customer such as coffee, baby food, confectionary as
well as ice creams and many more (Barros, Hernangómez and Martin-Cruz, 2016).There is
different type of products, business as well as corporate values which is followed by Nestle
that is going to be mentioned below:
Nestle products: There are wide variety of products offered by Nestle such as Baby
food, Breakfast Cereals, confectionary as well as pet food and so on to its customer at
affordable cost. They want to retain their customer for a longer period of time. In addition to
this, it aid assistance in increasing sales as well as profitability level in future period of time.
Business: The Company want to achieve leading position across the world. It helps in
increasing sales as well as profitability level in future period of time.
Corporate values: The corporate values of Nestle are to maintain honesty and trust
in order to retain customer for a longer period of time. It helps them in increasing sales as
well as profitability level in future period of time.
P2 what are the various strategies for these products? Name and evaluate two competitors for
each
There are different strategies which are adopted by company in order to provide
healthier products to its customer which is going to be discussed below:
Offering wide range plant-based foods: They offer wide variety of dietary products
according to the needs and wants of consumer. It helps in increasing sales as well as level of
profitability level in future period of time.
Customer Need: The main purpose of Nestle is to provide healthy and convenient
products for increasing the lifestyle of consumer in the market in order to satisfy them. They
offer products according to the taste of buyer for satisfying them. It helps them in retaining
customer for longer period of time.

Food Innovation: The Company emphasised on bring innovation in food market in
for increasing satisfaction level of consumer in the market. In addition to this, the business
organisation offer innovative and unique goods and services in order to compete with rival
firm at marketplace.
In addition to this, there are two competitor of Coffee is Starbucks and Unilever
(Baumgartner and Rauter, 2017). And for the coffee machine, there are competitor available
named as coffee bean and Kraft Heinz. Therefore, it is necessary for business firm to
maintain competitive advantage over rival firm at marketplace.
P3 Name two main competitors of Nestle Nespresso product. What is competitive
advantage? Is it sustainable? How Nestle can maintain its competitive advantage for their
products
There are two main competitor of Nestle is General Mills and Unilever. The main
purpose of Nestle is to provide healthy as well as tasty food to its customer in order to
increase their health lifestyle. In addition to this, they maintain good relationship with its
customer in order to gain competitive advantage over rival firm at marketplace. They focus
on optimum utilisation of resources in order to maintain sustainability within organisation.
They offer superior quality products as per the need of customer that helps them in achieving
competitive benefits in the market (Bryce, 2017).
P4 Evaluate how and why Mr. Jean-Paul Gillard adopted and function acquisition and
strategic alliance in the market
The strategic alliance of Nestle is formed with Polar Beverages in order to boost their
brand at marketplace. They focus on identifying the need of consumer for providing product
in advance as well as instant consumption at anywhere and anytime. The main purpose of this
strategic alliance is to increase brand image and reputation of company in front of customer
in the market (Durand, Grant and Madsen, 2017)
P5 how do you think Mr. Jean-Paul managing and operating the Nespresso product strategies
and tactics? State any alternative strategies.
The strategy which is adopted by Nestle is to set up the joint venture with Swiss-
based dispenser in order to sell an innovative product at marketplace. They make effective
financial strategy and tactics in order to make plan of implementing products strategy in

better way. In addition to this, they forecast the demands of consumer in order to satisfy
them. And also, they consider external environmental factor for making effective plan at
marketplace. Then, they implement product strategy for satisfying the need and wants of
consumer (Hill, 2017). The competitor firm uses STP Approach in order implements effective
product strategy such as:
Segmentation: The manager of Unilever dividing the whole market into
psychographic, behavioural, demographic as well as geographic segment for executing
product strategy in an effective manner. The main aim is to assess the need and wants of
customer according to the different elements such as age, gender, income as well as religion
of an individual person of society.
Targeting: They focus on targeting customer in order to analyse the need of
consumer in order to satisfy them. It is necessary to satisfy the requirement of customer in
order to provide them high quality products and services as per their wants.
Positioning: Herein, The manager focuses on offering superior quality products and
services to its customer in order to retain them for longer period of time. In addition to this, it
helps in building brand image and position of products in the mind-set of consumer at
marketplace.
P6 what general lesson learned from the Nespresso products strategies?
There are different lesson which is learned from Nespresso products strategies such as
it experience to be boosting to mass market. In addition to this, they adopted effective
distribution deal; understand their client in order to make good relationship with its customer
at marketplace. In addition to this, the manager focuses on fulfilling the need of customer by
provide them high quality products and services at affordable cost. In addition to this, they
make effective strategies related to products for satisfying their customer at marketplace.
These are the wide range of lesson related to Nespresso product strategies acquired during the
period of time (Koseoglu, 2016).
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REFERENCES
Books and Journals
Barros, I., Hernangómez, J. and Martin-Cruz, N., 2016. A theoretical model of strategic
management of family firms. A dynamic capabilities approach. Journal of Family Business
Strategy, 7(3), pp.149-159.
Baumgartner, R. J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production, 140,
pp.81-92.
Bryce, H. J., 2017. Financial and strategic management for nonprofit organizations. Walter
de Gruyter GmbH & Co KG.
Durand, R., Grant, R. M. and Madsen, T. L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal, 38(1),
pp.4-16.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing
function. Macmillan International Higher Education.
Koseoglu, M. A., 2016. Mapping the institutional collaboration network of strategic
management research: 1980–2014. Scientometrics, 109(1), pp.203-226.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.