Detailed SWOT Analysis Report: Nestle's Market Position and Strategy

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Nestle, a prominent global food company. The analysis examines Nestle's internal factors, such as its extensive brand portfolio, global workforce, and robust R&D capabilities, which represent its strengths. It also addresses internal weaknesses, including brand management challenges and past controversies. Furthermore, the report explores external opportunities like market expansion through partnerships and the growing demand for ready-to-drink products. Finally, it identifies external threats, such as increasing competition and the impact of external factors like natural disasters on product prices and consumer behavior. The analysis concludes with an emphasis on the importance of the SWOT framework for meeting company objectives and evaluating business positions in specific segments like production, marketing, and sales.

Running head: SWOT ANALYSIS OF NESTLE
SWOT Analysis of Nestle
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1SWOT ANALYSIS OF NESTLE
Nestle S.A., the Swiss food company is located in Vevey, Vaud in Switzerland is one of the
famous food companies around the world. In fact, the company ranked as number 33 as on 2016’s
Forbes Global 2000 edition of largest public companies. The thesis can be to understand the strength
and weakness of the company Nestle that would in turn affect the company’s opportunities and threat.
Strength and Weakness are the company’s internal factors and Opportunities and Threats are
the company’s external factors. Therefore, this analysis is often called the internal-external analysis.
The SWOT analysis of the company Nestle has been discussed in the following section:
Nestle have their portfolio both in urban as well as rural markets (Hollensen 2015). In fact,
Nestle has around 8000 brands under its name in order to satisfy the customer needs (Sakunia and Jha
2016). They have around 340,000 of worldwide workforce who are continuously working to meet the
customer expectation (Hollensen 2015). It involves almost 5000 people in their R&D and includes 21
research centres around the world (Sakunia and Jha 2016). They do their branding of their various
food brands which helps to create awareness about various food brands. This also helps because if the
brand Maggi is altered, it does not affect the purchase of Coffee. This can be identified as the strength
of Nestle. However, on the contrary, several controversies regarding their products Maggi, their baby
formula boycott, chocolate price fixing have been affected their business (Sakunia and Jha 2016). On
the other hand, there are so many brands under the same name; therefore sometimes it is quite
difficult to manage such a huge brand.
In today’s world, it is possible for them to introduce more health-related products, and as they
are a market leader, their success rate is comparatively higher. In fact, they launched new premium
chocolates Nestlé Treasures Gold, to cash-in on the recession economy (Renault 2014). By
penetrating more into the market through its robust supply chain will help to expand the company’s
business. Moreover, Nestle has been partnered with several companies including Coca-Cola and has
the major shareholder of L’Oreal (Sakunia and Jha 2016). Moreover, ready-to-drink teas and coffees
are increasing day-by-day (Moura, Branco and Camoesas 2017). Therefore, it helps them to further
grow in their business. On the contrary, in recent days, as competition increases day-by-day, it is quite

2SWOT ANALYSIS OF NESTLE
hard to set themselves apart from their competitors. It is a threat that destroys their brand image.
Moreover, as product price increases due to an increase in the coffee beans because of natural
disaster, there is a decrease in its sales; consumer therefore switches to the other products for which
demand decreases.
Therefore, from the above analysis it can be concluded that SWOT analysis is particularly
important as it helps to meet the company objective. This study can also be used to evaluate the
position of their business. It can also be used to deep into a specific segment like production,
marketing and sales.

3SWOT ANALYSIS OF NESTLE
Reference:
Hollensen S., 2015. Marketing management: A relationship approach. Pearson Education.
Moura, A., Branco, M. and Camoesas, M., 2015, June. NESTLÉ, A GLOBAL FIRM AND ITS
CUSTOMER RELATIONSHIPS. In IMC 2015 International Management Conference 26th June
2015 (p. 96).
Renault, V., 2014. SWOT analysis: Strengths, weaknesses, opportunities, and threats. Community
Tool Box.
Sakunia, D. and Jha, R., 2016. Managing Marketing Crisis: Case Study Research From Nestle's
Maggi Ban In India. Imperial Journal of Interdisciplinary Research, 2(10).