Detailed Business Analysis Report: Nivea's SWOT and PESTLE Framework

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Added on  2023/02/02

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This report presents a business analysis of Nivea, employing SWOT and PESTLE frameworks to evaluate its strategic position. The introduction highlights the importance of understanding internal and external factors for business success. The SWOT analysis identifies Nivea's strengths, such as its strong performance and market expansion, and weaknesses, like limited resources outside its core business. Opportunities include adopting new technologies and responding to environmental initiatives, while threats involve currency fluctuations and volatile political climates. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors impacting Nivea. The political environment involves regulatory influences, while the economic environment considers interest rates and inflation. Social factors relate to consumer health and marketing strategies, and technological factors focus on innovation. Legal factors address employee safety and regulations, and environmental factors emphasize sustainability. The conclusion emphasizes the value of these analyses in understanding business impacts. References from various academic sources support the analysis.
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PORTFOLIO
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Cover Content
Introduction
SWOT Analysis
PESTLE Analysis
Conclusion
References
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INTRODUCTION
A business want to be successful in marketplace, it is necessary to understand
factors that exert impact on their development of company.
The internal factors figure out strength and weakness.
If one element brings positive effect is consider strength and a factors prevent
development of company, is weakness.
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SWOT ANALYSIS
Strength Weakness
Nivea's superb performance and building portfolio at
entering new market and expanding into new products
categories.
Successful track records of developing new products and
integrating complimentary firms through merger and
acquisition
Nivea need more investment in new technologies as not
able to tackle challenges.
Limited resources outside core business as not good at
demand forecasting, missed opportunities.
Opportunities Threats
Adoption of new technologies along with government
green drive for new innovation, creates huge
opportunities for Nivea.
With low inflation rate Nivea enable to increase its
competitiveness with competitors.
Increase the demand of highly profitable products in
peak season. Foe example- winter care products.
Nivea, is operating in numerous countries, exposed to
currency fluctuation in volatile political climate market
across the worlds.
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PESTLE ANALYSIS
Political environment
Economic environment
Social factor
Technological Factors
Legal Factor
Environment Factor
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POLITICAL ENVIRONMENT
Nivea, is affected by local, national, global political environment. It prices are
control by regulatory bodies and differ from nation to nation.
Need to check political influences before launching new product so that they do
not face any legal issues.
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ECONOMIC ENVIRONMENT
Change in interest and exchange rate, as well as inflation rate are main
element that affect the value of Nivea.
Increase in commodity price leads to increase risk at financial market
which affect the business of respective organisation.
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SOCIAL FACTOR
They concern mainly about people's health according to their age, attitudes and
emphasis on safety.
Nivea, using power of new marketing strategies as part of mix grow awareness
among targeted consumer.
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TECHNOLOGICAL FACTORS
Nivea using modern technological advancements for new and existing products.
Focusing on reliable quality, as a strong track record for innovation with use of
superior technology as core element for success.
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LEGAL FACTOR
With the adoption of laws, Nivea ensure certain safety for their employees such
as health, compliance and grievances. As it is beneficial for both employees and
organisation.
There are certain legal regulation which are not favourable for the respective
company. Such minimum wage act, that bound to pay certain amount of wages
as per the law.
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ENVIRONMENT FACTOR
Nivea, is focusing on minimising effect on surroundings of environment by
adopting certain techniques to sustainable environment of business.
Focusing on lower down carbon emission at certain level, as to have control
over it.
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CONCLUSION
From the above discussion it has been concluded that, SWOT and PESTLE
analysis help a decision maker in understanding the impact of these changes on
their business.
Further, SWOT analysis focus on internal strength and weakness. Where as
PESTLE analysis concentrates on external factors that affect business.
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