Strategic Analysis of Business Organizations: Google, Nike, and Nestle

This report provides a comprehensive strategic analysis of three prominent business organizations: Google, Nike, and Nestle (Vietnam). It begins with an introduction to strategic analysis, emphasizing the importance of identifying competitive advantages and adapting to a dynamic business environment. The report then profiles each company, detailing their industry, key products/services, and market position. A significant portion of the report is dedicated to analyzing the market strategies employed by each company, including Google's focus on market penetration and innovation, Nike's value-based pricing and differentiated marketing, and Nestle's differentiated marketing and branding efforts. Furthermore, the report critically examines the competitive strategies of each company, such as Google's cost leadership and differentiation, and analyzes their approaches to social responsibility. The report concludes with recommendations for strategy and value innovation, summarizing key findings and insights from the analysis. This analysis highlights the importance of adapting to the market and staying relevant to the consumer.

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STRATEGIC ANALYSIS
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1STRATEGIC ANALYSIS
Introduction
Strategic analyses of a business organization involve identification of the key capabilities,
competitive advantages, and resources possessed by a particular business origination. Analyzing
the operations and activities of the business organization is highly essential in order to attain
competitive advantage and figure out most convenient way of attaining the goals and objectives
of the business organization. In the highly competitive business environment, it is essential for
the businesses to develop core values and provide value to the customers. The external business
environment is highly competitive with presence of new emerging firms offering innovative
products and services to the customers as well as the existing players in the market (Papulova &
Gazova, 2016). The purpose of this report is to analyze the strategies incorporated by different
business organizations. The report will be focusing on the strategies of the chosen business
organizations including Google, Nike, and Nestle (Vietnam). Google Inc, operating in IT
industry, Nike operating in fashion and apparel industry while Nestle operating in food and retail
industry. It provides detailed analysis and compares the strategy implementation of three
different companies operating in three different sectors. The report determines the competitive
analysis of the business organizations operating in their respective business environment.
Further, the report provides detailed analysis of the selected companies. It describes the market
strategy, supporting it with research. Furthermore, it critically analyzes the competitive strategy
of the companies and the ways in which the companies operate in a socially responsible manner.
Moreover, it provides recommendations and suggestions for strategy value innovation. Lastly, it
sums up the main points from the report and concludes the report.

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Description and analysis
Identification of the companies / Company profile
Google is one of the leading companies in the informational technology industry. The
business organization has a global presence with wide range of its products and services
including search engines, chrome browser, web store, Google maps, and other online products.
Google Inc is known for its user friendly search engine and browsers (Google - 2020). The
business organization has a huge impact on the lives of its customers. The company has found
success and leadership position in the market with its high product value and other competitive
advantages. The business organization has found success in very short duration of time. The
company has beaten all odds and challenges and continues to grow and expand its business
operations. Google Inc operates in a highly competitive business environment, yet it has been
able to maintain its position in the global market (Michelon, Boesso & Kumar, 2013).
Advertising and promotion is to core business strategy on which the overall success of the
organization is dependent. Innovation is one of the core values and competencies of the business
organizations. The company continues to offer innovative products and services to the
customers. The scope of technology market in Google is massive. The business organization has
completely altered the ways of gathering information (Rothaermel, 2016). The business
organization has been highly successful in creating new benchmarks in different areas. It
continues to grow and expand its operations. However, as argued by Rohrbeck & Schwarz,
(2013), the company has been criticized for predatory technology. The advertising strategy of the
business organization has been termed as Predatory. However, the business organization
refocused on technological innovation to ensure sustainability and position in the market.

3STRATEGIC ANALYSIS
Nike Corporations was founded in the year 1962 by Bill Bowerman and Phil Knights as
business partners (Contact Nike, Inc. 2020). The business organization operates in sports and
fashion industry. The overall goal of the business organization is to distribution high quality and
low cost shoes to its customers. The business organization not only distributes and manufactures
shoes at affordable pricing but also other athletic apparels, subsidiary ventures and sports
equipments. The business organization has been successful in maintaining both traditional and
nontraditional distribution channels in its targeted regions (Contact Nike, Inc. 2020). The
primary product feature is specifically designed for sports activities and other sports related
merchandise and raw materials. However, the business organization has been facing challenges
to maintain its financial and operational initiatives. The company also faces challenges of low
inventory management systems and its ability to quickly adapt to the changing needs and
preferences of the consumers and the market trends. However, as stated by Michelon, Boesso &
Kumar, (2013), despite the challenges faces by the business organization; it has been able to
maintain conservations in cost structure. According to Rothaermel, (2016), it is worth noting that
the business organization has been able to provide highly effective marketing strategies and
bring opportunities through its sports events in regional and global market. This enables the
business organization to increase exposure in the market and respond to the demands for
fashionable athletic footwear and other accessories. Most importantly, the company has been
able to successfully maintain its quality and performance (Rohrbeck & Schwarz, 2013). The
company also operates in a competitive business environment. It faces stiff competition from
Reebok, in terms of its products and services. Both the companies offer similar products and
services involving designing and marketing.

4STRATEGIC ANALYSIS
Nestle Vietnam operates in food and beverage industry. The main focus of the business
organization is in food and drinks. It is the mission of the business organization to provide
delicious and nutritious food and beverage products to the customers. The company provides
wide range and variety of food products (Nestle Strategy. 2020). The business organization has a
strong geographic presence in the world. The research and development of the business
organization is one of their key competitive advantage and capabilities. The major capabilities of
the business organization mainly stems from its research and department network (Burchell &
Cook, 2013). The geographically diverse business organization is its major revenue sources. The
company’s sustainability efforts enable them to gain reputation and brand image. However, the
business organization has been criticized over its practices. It has been argued by Zott & Amit,
(2013), that the company engaged itself in unethical marketing and misleading labeling.
However, the business organization focuses on enhancing the quality of life and contributing to a
healthier future while maintaining a market leadership (Proctor, 2014). The business
organization has specific strengths which enables the company to gain top most position in the
market.
Description of market and industry strategy
The world famous business organization Google implements a generic strategy to handle
the external forces prevailing in the market. The business organization tactfully handles the
intensive growth strategy through its market penetration strategy (Sharma & Shukla, 2015). This
enables the business organization to ensure growth and sustainability in the business

5STRATEGIC ANALYSIS
organization. Other market strategies such as product development, product improvements, and
diversification are some of the strategy which is focused by the business organization in order to
support its growth and expansion strategy (Araujo et al., 2013). Accessibility and affordability
are two major components of its marketing strategies. This has enabled the business organization
to sustain in the highly competitive business environment. As rightly stated by Jarillo, (2013),
that effective market strategy begins with product innovation and product improved geared
towards the satisfaction and need of the consumers. The company primarily focuses on its
products and services. It has successfully differentiated its brand from other competitors in the
market. Furthermore, the company also focuses on user convenience. In other words, the
business organization considers customer experience to be one of the most important elements
for successful marketing (Walker et al., 2014). As a part of its effective marketing strategy,
Google Inc. captures the largest market share through online advertising. Moreover, the
competitive pricing policies of the business organization have enabled the company to attract
wide range of consumers in the market. The competitive pricing policies enable the business
organization to differentiate its products and services from the competitor’s products and
services (Engert, Rauter & Baumgartner, 2016).
On the other hand Nike Corporations implements value based pricing policies and price
leadership tactics for marketing its products and services in the global market. The pricing of the
product is based on the value of the product that is offered to the customers. In order to remain
competitive in the market and sustain its position in the market, it implements a differentiated
pricing strategy (Krylov, 2014).. The business organization tactfully segments the market to
attract the target customers. Targeting the market is considered to be one of the most important
aspects. Nike Corporations, positions its brand in order to create and image in the minds of the

6STRATEGIC ANALYSIS
consumers. Moreover, the company has a strong product portfolio in various market segments.
This tactics enables the business organization to retain the customers in the organization and
attract new customers from the market. Similar to Google Inc, Nike corporations also consider
innovation and new product develop to produce high quality footwear and apparel for the
consumers in the market (Schoemaker, Krupp & Howland, 2013). The business organization
also provides online marketing strategies to enable the business organization to gain a leadership
position in the market. According to Dolata, (2017), the business organization invests hugely in
market in order to sustain its position in the market. Nike Corporations promotes and advertises
its products with famous professional athletes and celebrities with sponsorship agreements. The
company also endorses their products with athletic professionals to market their products and
services. The business organization mainly focuses on various sponsorships, email marketing,
internet marketing, and utilized multimedia marketing campaigns. For instance, Nike’s athlete
endorses their footwear products with Romanian tennis player named Llie Natas. This enables
the business organization to gain exposure and attract new customers in the market (Bower &
Meitl, 2016).
The company Nestle also invests hugely in marketing and promoting its products and
services. The company implements a differentiated marketing strategy similar to Nike
Corporations in order to retain its position in the market (Rothaermel, 2016). The differentiated
targeting strategy of the business organization enables the company to target homogeneous
customers with wide range of products and services. The business organization also uses a
combination of value based product based pricing and positioning strategies similar to Nike
corporations (Autio & Thomas, 2014). The business organization mainly focuses on branding
and advertising to retain new customers and ensure loyal customers. The marketing strategy

7STRATEGIC ANALYSIS
incorporated by the business organization enables them to fuel growth and profitability of the
business organization (Cui et al., 2015). As a part of their marketing strategies, Nestle
implements effective ways to create video tutorials to demonstrate the nutrient value of the food
products offered by the company. Through YouTube and other social media platforms the
business organization conducts surveys to gather customer information and provide products as
per the needs and demands of the customers (Cui et al., 2015).
Critical analysis of competitive strategy of each companies
As mentioned by Korableva & Kalimullina, (2016), the unique culture of Google Inc has
enabled the business organization to create unique culture enables the business organization to
create an identity and brand image of the business organization. The competitive advantages of
the business organizations including unique brand image, the leadership positioning and top
notch talents within the business organization enables the organization to maintain its
competitiveness in the global market (Ardito & Petruzzelli, 2017). Google inc. incorporates a
cost leadership strategy, differentiation strategy and value creation to maintain its
competitiveness. The products and services offered by the business organization are unique and
are affordable in the market as mentioned by Segers, (2015).. The business organization tactfully
lowers of operating cost in order to make the products and services affordable in the market. The
business organization has a cost advantage. The pricing of the products and services offered by
the business organization are highly competitive. This enables the business organization to attain
higher profit margin as compared to their competitors in the market. Moreover, as mentioned by
Aryanto, Fontana & Afiff, (2015), the differentiation strategy adopted by the business
organization enables it to attain competitive advantage. The costs of operations are compensated
by its bulk sales. The business organization also focuses on cost leadership strategy on specific

8STRATEGIC ANALYSIS
market segment. It is one of the company’s competitive advantages. Furthermore, the business
organization focuses on continuous innovation and distinctive competencies which enables the
business organization to connect with various internet users, website owners, and advertisers.
The company also has technological advantages (Dess, 2013). The high performance system of
the business organization enables the business organization to undertake workload more than
normal general system of other competitive. This capability of the business organization has cost
advantage over its competitors in the market (Alhaddi, 2014).
As compared to Nike Corporations, it focuses on product differentiation, strengthening
customer/supplier intimacy and focusing on market niche. As mentioned by Dess, (2013), the
product differentiation strategy is implemented by the business organization to distinguish the
products from the competitor’s products through system information. The business organization
also contains strong reputation in the market by developing new products and focusing on
product developing. This strategy enables Nike Corporations to make it strong and hard for the
competitors by following product differentiation strategy (Autio & Thomas, 2014). The business
organization strengthens customer along with supplier intimacy strategy to retain customers and
attract new customers in the business organization. According to Bower & Meitl, (2016), the
strong reputation of the business organization is maintained its strengthening the customers and
enhancing supplier relationship. They develop a strong relationship with the customers and the
suppliers through their effective information system. Furthermore, as stated by Rothaermel,
(2016), the business organization focuses on market niche strategy. It implies that the business
organization focuses on specific market or specialized place by implementing information
system. In contrast to Google Inc. strategies, it does not focus on ‘low-cost leadership’ rather the
pricing of the product is slighter higher which reflects its quality and premium products (Autio &

9STRATEGIC ANALYSIS
Thomas, 2014). The business organization embeds latest technologies in its products and
services which are interrelated with others. The footwear product offered by the business
organization focuses on taste and changing preferences of the consumers as mentioned by Cui et
al., (2015). The research and development of the business organization considers the choice and
preferences of the consumers to manufacture high quality fashionable products to the customers
thereby making it socially appropriate.
According to Alhaddi, (2014), Nestle is designed to strengthen its focus on core nutrition
business. The business organization mainly focuses on strengthening the leadership position in
the market, which in turn strengthens its competitive strategies. The overall aim of the business
organization is to deliver superior service to the customers and ensure business performance by
offering high qualified customer trusted nutrition products and services (Dess, 2013). The
autonomous global business unit within the business organization reinforces its competitive
advantage. The international strategy of the business organization complements its competitive
focus. The competitive strategy of the business organization is associated with its foreign direct
investment, high risk, and potentiality (Aryanto, Fontana & Afiff, 2015). The business
organization recognizes its sustainability and profitability in high risk countries. This enables the
business organization to take necessary risks to ensure growth and sustainability in the business
organization. Another competitive strategy of Nestle is its strategic partnership with other large
organizations as stated by Autio & Thomas, (2014). For instance, the business organization
entered in alliance with Coca Cola in order to gain advantages and benefits from Coca Cola
regarding bottling systems along with other expertise. This enables the business organization to
compete in a flat and fiercely competitive business environment (Rothaermel, 2016).

10STRATEGIC ANALYSIS
Furthermore, Nestle corporations also have insights on new international markets for growth and
expansion.
Suggestions and recommendations for strategic value innovation
Value innovation involves continuous pursuit of low cost and differentiation thereby
creating value for both the business organization and the consumers in the market. Value
innovation is considered to be the cornerstone of marketing strategy (Bower & Meitl, 2016). It is
suggested that the business organizations must focus on offering utility and affordable pricing as
value is created by offering high quality products and affordable pricing. Value innovation in
business organization can be created by achieving whole system of price, utility, and cost
(Rothaermel, 2016). These elements must be in aligned with each other to create value for the
customers. It is suggested that the business organizations must focus on cost saving by reducing
operating cost and eliminating other factors which the business organization competes on. It is
also recommended that the business organizations must increase buyer value by developing new
products and innovation in the products and services offered by them (Autio & Thomas, 2014).
As per the analysis, it has been identified that Nike Corporations focuses on rigorous marketing
strategies such as sponsoring the products and inviting sports celebrities to promote the brand.
However, as stated by Engert, Rauter & Baumgartner, (2016), the business organization lacks
cost affordability and focuses only on advertising and promoting its products and services.
Henceforth the products are only purchased by small market segment consumers. Only the high
income group earners are targeted. Therefore, it is recommended that the business organization
must revise its pricing strategy to reach to its wide market base and ensure that the products and
services offered by the business organization are affordable by all market segment consumers

11STRATEGIC ANALYSIS
(Schoemaker, Krupp & Howland, 2013). In order to overcome stiff competition in the market,
they must focus on incremental improvements in quality and cost of the products and services. It
has been identified that Google Inc, continually focuses on product development and innovation.
This enables the business organization to overcome stiff competition in the market and continue
to maintain its position and reputation in the global market (Bower & Meitl, 2016). Google Inc.
is an example for innovative company; the business organization strategically breaks free from
the competitive market and stakes out in a new market space. According to Engert, Rauter &
Baumgartner, (2016), the company creates new innovative products and services having no
direct competitors or similar products. This has enabled the business organization to create value
of the customers. It is recommended that both Nike Corporations and Nestle must also focus on
product innovation and product improvement along with ensuring quality and cost. Considering
the present market scenario, with increase in globalization, it is expected that global competition
will also increase (Rohrbeck & Schwarz, 2013). Therefore, it can be said that profitable growth
and expansion of the business organization might be a challenge for the organizations.
Henceforth, value innovation is highly essential to ensure sustainability and profitability of the
business organizations (Michelon, Boesso & Kumar, 2013). It is recommended that the business
organizations must focus on strategic thinking in contrasts with companies focusing on beating
the companies. In today’s dynamic and highly competitive business environment, technological
innovation and value creation is highly essential to ensure greater productivity and sustainability
(Rothaermel, 2016). It is also essential for the business organizations to provide customer desired
valuable products to ensure profitability of the business organization in the globalized economy.
The needs and requirements of the customers can be fulfilled by creating valuable products for
new market segment and focus on creating customer demand (Rohrbeck & Schwarz, 2013). By

12STRATEGIC ANALYSIS
providing valuable and highly creative products and services, the consumers will be willing to
purchase the product (Burchell & Cook, 2013). Henceforth, it can be said that innovation and
product improvement is the key strategy to overcome stiff competition in the global market. It
must also be ensured the product innovation and product improvement must be in alignment with
cost, price, and utility to the customers (Zott & Amit, 2013).
Conclusion
Therefore, from the strategic comparison of three companies from different sector it has
been identified that all the companies incorporate unique strategies for value creation to ensure
its competitiveness and sustainability in the market. The report has strategically analyzed the
three selected companies, Google Inc, Nike Corporations, and Nestle. It has been identified that
Google Inc has various competitive advantages such as its global presence, reputation, and brand
image in the global market. Further, the business organization provides innovative products and
service while focusing on affordability and accessibility. The business organization implements
generic strategies to overcome the challenges in external business environment. The report has
analyzed the competitive strategies and market strategies incorporated by different business
organizations. It has been identified that Nike Corporations implements a value based pricing
policies. The pricing policies of the business organization are based on value of the products.
The business organization mainly focuses on rigorous marketing strategies to promote its
products among professional athletes and sports celebrities along with sponsorship agreements.
However, it has been argued that the company focuses mainly on advertising rather than value
creation and pricing. Therefore, it has been recommended that the business organization must
focus on creating valuable products and ensuring affordability. This will enable the company to
make the products affordable among wide market base. The report has also analyzed the

13STRATEGIC ANALYSIS
strategies of Nestle. It has been identified that Nestle also invests hugely in promoting and
marketing its products and services. The company also incorporates a differentiated targeting
strategy for its wide range of food and nutrient products. This enables the business organization
to ensure growth and profitability. The report has provided recommendations and suggestions for
strategic value innovation and the ways in which the selected organization can incorporate value
innovation to stay ahead of other competitors in the global market.

14STRATEGIC ANALYSIS
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