Nestle capitalizes on it’s strengths, weaknesses, opportunities, and threats when implementing their general and current strategy We have analyzed their internal and external environment and have listed a few of the important ones here. Nestle has always had a strong reputation since the company was founded by Henri Nestle in 1886, having since then established many valued brands. On the other hand, weaknesses include recent issues of labor conditions overseas in their cocoa farms. . The increase in awareness of health issues and trends in nutritional foods have spurned opportunities in areas like the organic food market. However, Nestle is also faced with threats from government regulation which in the US means abiding by FDA laws
Nestle keeps a competitive advantage from its competitors because of it follows both a product differentiation and low-cost operational strategy It’s values renovation and innovation of it’s many brands in areas like baby foods and coffee. A main factor in implementing this strategy is constant expansion. This resulted in many mergers and acquisitions and joint ventures throughout Nestle’s history. This strategy is a main reason why Nestle is the largest global food company, a key strength and advantage. Nestle also follows a low-cost strategy in terms of it’s operational effectiveness. Nestle produces almost all of it’s products in factories overseas. It implements the Nestle Continuous Excellence program which is meant to facilitate better management in the operating systems.
Apart from it’s general strategy, Nestle current strategy focuses it’s efforts in premiumisation – the ability to strengthen it’s premium products lines in areas like high-end coffee and chocolate brands For instance, as an extension of Nestle’s premium coffee brand Nespresso, Nestle recently unveiled a new luxury tea machine called Tpresso. The machine releases essential oils that contain healthy antioxidant. This strategy demonstrates Nestle’s desire to move into opportunities in the healthy beverage market and also capitalize on the consumer buying trends in the luxury goods area
(Not for PowerPoint) As a result of its global presence and need for long-term commitments, Nestlé has incorporated the interests and cultural values of its diverse stakeholders. It has brought the historically Swiss tradition of structure, efficiency and commitment to the environment and blended it with the local traditions of their many divisions.