Preview

Comparing International Strategies of Nestle and Kraft Foods in Emerging Countries

Satisfactory Essays
Open Document
Open Document
614 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Comparing International Strategies of Nestle and Kraft Foods in Emerging Countries
Comparing International Strategies of Nestle and Kraft Foods in Emerging Countries

Research Help

Flashcards

« Study and create flashcards for free at Cram.com

Upgrade | Hi sweetlife...

Get Access to StudyMode.com - Complete Your Registration Now.

StudyMode - Premium and Free Essays, Term Papers & Book Notes

Essays
Book Notes
AP Notes
Citation Generator
More

Comparing International Strategies of Nestle and Kraft Foods in Emerging Countries

By pprraanniittaa, september 2013 | 8 Pages (1941 Words) | 2 Views

|

4.5
1
2
3
4
5
(1)
|

Report

|

This is a Premium essay for upgraded members

Upgrade to access full essay

CLICK THREE TIMES FOR GOOD LUCK
Send

NESTLE’S GLOBAL STRATEGY FOR PENETRATING INTO EMERGING MARKETS Nestle is one of the world’s largest global food companies. It has over 500 factories in 76 countries, and sells its products in 193 nations. Only 1% of sales and 3% of employees are located in its home country, Switzerland. Having reached the limits of growth and profitable penetration in most Western markets, Nestle turned its attention to emerging markets in Eastern Europe, Asia, and Latin America for growth. Many of these countries are relatively poor, but the economies are growing quickly. Thus a consumer base capable of buying many Nestle products will develop over the next couple of decades. In general the company’s strategy has been to enter emerging markets early before its competitors and build a substantial customer base by selling products which suit the local population such as infant formula, milk, and noodles. Nestlé narrows down its market share to many small niche markets, as opposed to general or one for all strategies. Nestlé keeps the goal of commanding
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    level 3 business studiesUnit 3 introduction to Marketing P1
    • 678 Words
    • 3 Pages

    level 3 business studiesUnit 3 introduction to Marketing P1

    Nestle use a variety of marketing strategies. One of which is the growth strategy which can take many forms as as listed below..…

    • 678 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Kantian and Utilitarian Theories
    • 2409 Words
    • 10 Pages

    Kantian and Utilitarian Theories

    Nestle is a corporation engaged in home products processing and marketing worldwide. In the mid-1860s, it developed an infant-food formula as a supplement and/or substitute to breast-feeding. It then claimed humanitarian achievement after the formula was used by relief organizations such as the Red Cross to feed starving infants in refugee camps. In third world countries, the Nestle product has also been used as an alternative to less nutritious local infant feeding substitutes. And today, Nestle is the third largest home food company in the world with gross sales of nearly US$39 billion a year. But the Nestle success story is marred by controversy as the company has been charged for gross violations of a World Health Organization Code that affected both first world and third world countries.…

    • 2409 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Best Essays

    Nestle Ethical Issue
    • 2675 Words
    • 11 Pages

    Nestle Ethical Issue

    Nestle is the one oldest multinational businesses which was established in Switzerland since 1866 by a Swiss pharmacist, Heinrich Nestle. He developed a milk food formula for infants. This company had gone in many name changes from 1866 to 1947, and the last name Nestle has used since 1977. There are eleven categories such as Baby Foods, Sports Nutrition, Chocolates, Waters, Coffee, Beverages, Frozen Meals, Ice Cream & Frozen Treats, Imported Foods, Healthcare Nutrition, and Pet Foods. Base around the world is in 83 countries 461 factories, and 45% of all factories are approached to settle manufacture in developing countries where include 48% of employees (Nestle 2010). In this essay, it will be evaluated that Nestle has faced with ethical issues in three product segments of unethical water supply, child labor in cocoa supply chain and breast powdered-milk boycott which this firm has some keys to dealing with those challenges. Moreover,…

    • 2675 Words
    • 11 Pages
    Best Essays
    Read More
  • Better Essays

    Strategy and International Business: Nestle Case Study
    • 1686 Words
    • 7 Pages

    Strategy and International Business: Nestle Case Study

    Over the years, many typologies of multinational companies (MNCs) have been developed. As such, Bartlett and Ghoshal (1989) provided the most extensive typologies regarding MNCs. Besides, Harzing (2000) uses a different division of the multinational companies and separates them in relation to organizational design and subsidiary role, local responsiveness and interdependence. The identified types are: Multidomestic, Global and Transnational (Harzing, 2000). Multidomestic typology combines high national responsiveness and domestic competition, implying that the company responds to national differences and has a decentralized structure, although scores low on global competition and economies of scale. In contrast, Global typology characterizes high global competition, economies of scale, and low national responsiveness, as companies tend to build cost advantages through economies of scale. Finally, the Transnational cluster combines both typologies focusing on economies of scale as well as national responsiveness. Verbeke (2009) describes four archetypes of administrative heritage, namely the ‘centralized exporter, ‘international projector’, ‘international coordinator’, and ‘multi-centred MNE’ which regard to a specific routine of internationally transferring FSAs. In comparison to Harzing’s (2000) typology, these four archetypes of administrative heritage describe how a company’s FSAs are internationally transferred and its location advantages, while Harzing’s typology discusses the types of MNCs and its measurement to various elements. In 1986, Bartlett and Ghoshal…

    • 1686 Words
    • 7 Pages
    Better Essays
    Read More
  • Best Essays

    Nestle Market Research
    • 3338 Words
    • 14 Pages

    Nestle Market Research

    * Aziz, M.K. (2009) Marketing Management Strategies of Nestlé [online]. Publication 20 May 2009 [accessed 18 June 2012]. Available from: http://www.scribd.com/doc/61960026/Nestlé…

    • 3338 Words
    • 14 Pages
    Best Essays
    Read More
  • Better Essays

    Competitor Analysis: Hershey's
    • 1191 Words
    • 6 Pages

    Competitor Analysis: Hershey's

    Goals: Nestlé’s primary objective is to be the leader in nutrition, health and wellness, committed to enhancing people’s lives, and the industry reference for financial performance, trusted by all stakeholders. Additionally, Nestlé is committed in driving performance in line with the Nestle Model of profitable growth and resource efficiency, with growth around 5% and improvements in margins, underlying earnings per share in constant currencies and capital efficiency.ii…

    • 1191 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    THE STRATEGIES USED BY NESTLE’S COMPETITORS IN MANAGING THE ENVIRONMENT
    • 5461 Words
    • 14 Pages

    THE STRATEGIES USED BY NESTLE’S COMPETITORS IN MANAGING THE ENVIRONMENT

    Nestl describes itself as a food, nutrition, health, and wellness company. Recently they created Nestl Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. They believe strengthening their leadership in this market is the key element of their corporate strategy. This market is characterized as one in which the consumers primary motivation for a purchase is the claims made by the product based on nutritional content. In order to reinforce their competitive advantage in this area, Nestl created Nestl Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and loss responsibility for the claim-based business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition. This unit aims to deliver superior business performance by offering consumers trusted, science based nutrition products and services. The Corporate Wellness Unit was designed to integrate nutritional value-added in their food and beverage businesses. This unit will drive the nutrition, health and wellness organization across all their food and beverage businesses. It encompasses a major communication effort, both internally and externally, and strives to closely align Nestls scientific and RD expertise with consumer benefits. This unit is responsible for coordinating horizontal, cross-business projects that address current customer concerns as well as anticipating future consumer trends. International Strategy Nestl is a global organization. Knowing this, it is not surprising that international strategy is at the heart of their competitive focus. Nestls competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses. Nestl aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets of Africa and Latin America. Nestl recognizes the profitability…

    • 5461 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Case Analysis in Nescafe Product
    • 1360 Words
    • 6 Pages

    Case Analysis in Nescafe Product

    Nestlé 's superior geographic presence is key to its success over competitors. From the initial beginning in Switzerland the company has grown by leaps and bounds and now enjoys a presence in almost every country in the world. Today, Nestlé 's presence in most markets, including emerging markets, dates back many generations, and in some cases more than a century.…

    • 1360 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Nestle in China
    • 382 Words
    • 2 Pages

    Nestle in China

    What is the strategy of sales and marketing help Nestle succeed in this market? Do you think it continue succeed with this strategy?…

    • 382 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Nestle - Global Strategy Case
    • 1636 Words
    • 7 Pages

    Nestle - Global Strategy Case

    From the NESTLE : GLOBAL STRATEGY case, it can be seen that Nestle generally operates worldwide with the strategy of customization rather than globalization. It moves into consumer markets by using Niche market strategy to become the market leader in each of the niches. It mainly focuses on European markets, which make up 70 percent of its sales. As mentioned, these markets are in the mature state of the life cycle of that industry and also demographic changes such as the stagnation of population growth rate and slight decline in the food consumption have made it very challenging for companies like Nestle to generate higher profits through higher sales. Factually, the western economies are slumping in output and growth, thereby influencing the consumption patterns of customers, especially in the retail business. Consumers are becoming more aware of price and tend to spend less while they demand for customization, product differentiation and specialization at the same time. Another trend is the shifting away from branded food and beverages towards cheap non-branded foods and beverages. Nevertheless, the introduction of non-brand own labeled products such as Food Lion or encouraging private labeled products only makes sense in a large scale, in order to achieve economies of scale. As a result of increasing non-brand cheap products offered by rivals, Nestle has found itself in an even more problematic position in the market and needs to develop a new strategy either away from branding or towards a higher degree of international market penetration. Since Nestle prioritizes high quality and has distinctive competencies in producing higher quality food, it would be unwise to change the strategic group, because it would most likely lose its smooth operation. The right strategy is to expand into new markets such as Asia, Eastern Europe and South America.…

    • 1636 Words
    • 7 Pages
    Good Essays
    Read More
  • Powerful Essays

    hgvgn
    • 2234 Words
    • 7 Pages

    hgvgn

    Nestle had long recognised the need to diversify its operation beyond the Swiss frontier. Nestle strongly believe that a Nestle company in a foreign country can grow successfully only if there is a parallel growth in that country. It is with this spirit of partnership growth in that country. It is with this spirit of partnership and enterprise that Nestle arrived at the shores of Malaysia in 1912.…

    • 2234 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Nestle Growth Strategy
    • 859 Words
    • 4 Pages

    Nestle Growth Strategy

    As their main growth strategy Nestle used the acquisition method which is when the company takes the ownership of another company. Scholes(2008) This method might not always be as easy as it seems and could face direct failure, 70% of acquisition ends up with lower returns. As the biggest mistake organizations commits is paying too much for a company which might not have the resources or experience required.…

    • 859 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Marketing Report on Maggi-Nestle
    • 3063 Words
    • 13 Pages

    Marketing Report on Maggi-Nestle

    The world's largest food and beverage company, Nestle, was founded back long back in 1866 by a Swiss chemist Henri Nestle. Today, with sales of 96.3 bn USD ( in 2007), and a net profit of 9.5 bn USD, Nestle S.A is the world's leading nutrition, health and wellness company. It ranks no 1 in consumer Food Product category of Fortune's “ World's Most Admired Companies'. Headquartered in Vevey, switzerland, Nestle now employs around 265000 people at 481 factories in 87 countries and operates in almost every country in the world. It is truly a Multinational Corporation with home country sales accounting for only 2 % of the worldwide total.…

    • 3063 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Nestle - Report
    • 5379 Words
    • 17 Pages

    Nestle - Report

    This report had the purpose of obtain the most accurate marketing strategy for the case study of Nestle in 2008 to compete and growth in the market place. The analysis of this work showed different frameworks that helped to understand clearly the market context for this company. In the first place, the PEST analysis showed how the external factors affect the food and beverage industry. At the same time, to identify the main environmental issues that this industry has been facing was used SWOT analysis. Additionally, the Porter Five Forces were used to comprehend the competitor’s intensity and the global industry profitability. Afterwards, the model of Value Chain Analysis gave to this study the important facts to conclude the strategy options for this case, understanding deeply the different values of the organization that Nestle has as a company. At the end, the Ansoff Matrix opened a door to formulate the best strategy option proposed for this firm. This report conclude that a realist renovation of their line products and new strategic acquisitions on a new industry should be the best way for Nestle to growth in the market and at the same time maintain its position as the largest food and beverage company in the world.…

    • 5379 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Nestle final
    • 3347 Words
    • 11 Pages

    Nestle final

    Nestlé is the leading nutrition, health and wellness company in the world. Their mission is „Good Food, Good Life” and they provide consumers with nutritious and tasty food and beverages.…

    • 3347 Words
    • 11 Pages
    Powerful Essays
    Read More

Related Topics