Nestle's 3 Key Success Factors

Topics: Nestlé, Globalization, Häagen-Dazs Pages: 2 (496 words) Published: October 13, 2010
1.Localization amidst globalization
Successfully achieving localization in the increasingly globalized food industry •Product planning, production, marketing and services form a strategy of successful localization of a global company •Nestle has 2 organizations that focused on leveraging its global reach to achieve operational efficiencies: GLOBE and GNBS provide the process, organization and technology infrastructure to allow Nestlé to leverage its global size •GNBS will enable Nestlé to leverage its scale to increase the efficiency and effectiveness of its "back office" whilst enabling the markets and businesses to focus on demand generation and profitable growth •Nestle’s Swiss sales is only 2% of their total global sales

2.Global brand strategy
Nestle has products that resonate all over the world under a unified brand •These brands are unified under the Nestle banner, which delivered a value and reputation of a “global food company” while the products delivered its own specific attributes •The global corporate brand was the brand platform for delivering localized products and brands •Nestle has built global brands such as Nescafe, Nesquik, Nestea, Taster’s Choice, Haagen-Dazs

3.Successful M&A
Nestle has grown thru organic growth but really thru successful M&A •Nestle has acquired to enter both emerging and developed markets, and new product categories •Clear strategic focus: Food & Beverages, Nutrition, Health & Wellness, adjacencies to existing core businesses oWithin these strategic focuses, 12 of their brands represent 70% of sales, most are #1 or #2 in Market Share (4 of these brands are billion dollar brands) •Clear criteria for transactions: Enhancing key metrics, strong market positions, brands, capabilities, ease of integration (culture) •Global scope but focus on bolt-ons: both emerging and developed markets •M&A drives profitable growth thru competitive advantages, growth drivers, and operational pillars •Case...
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