SWOT ANALYSIS OF THE NESTLE COMPANY |
Organizational Theory and Behavior Term paper Prof. Asli Goksoy | |
Nowadays the company is one of the largest consumer packaged goods company in the world with a huge range of varying products. Nestle has spread its power to different markets such as chocolate, infant foods, water, health care nutrition etc. Today it is on the markets of 86 countries with more than 283,000 employees.| |
Irena Zasheva and Nikolay Iliev|
SWOT Analysis of the Nestle Company
Nestle is a company with headquarters in the Vevey, Switzerland, founded back in 1866 by Henri Nestle. Nowadays the company is one of the largest consumer packaged goods company in the world with a huge range of varying products. Nestle has spread its power to different markets such as chocolate, infant foods, water, health care nutrition etc. Today it is on the markets of 86 countries with more than 283,000 employees. 1. Strengths
-The Nestle logo and brand image -the unique set of associations in the minds of customers concerning what a brand stands for and the implied promises that the brand makes is defined as the brand image and logo of a company. As Nestlé’s logo says “good food, good life”, it has proven with its products the superiority to competitors and haslet its products stand behind the brand name. Thus, for Nestle we can say that the company’s corporate identity is totally associated by the very brand and logo of the company, and is a fundamental reason for their success on such a variety of markets. It is contributing for the brand recognition and loyalty building as well as for the creation of long-term customer relations. Therefore, the brand image of Nestle continues to play a crucial role for the corporation’s globalization efforts. It makes it one of the most famous and easily recognizable brands in the world. Nestle often stands out in front of many of its direct competitors when it comes to brand loyalty and quality.
- Specific path to growth- it has often been discussed that what is more important for Nestlé’s shareholders is not the company to be the largest on the market, but to be the leading one, that is they are putting much more emphasis on the quality rather than on the quantity of growth. As will become clear from our later analysis the refusal to divest weak brands is associated with the negative consequences of this company’s culture.
-Adaptivity- another one of the strengths of the company is the fact that they are easily adapting to the differing tastes among the geographic regions as well as to the constantly changing preferences of the customers from the same regional markets. The customization process of products for different niches and markets plus the constant spreading of the company into new product lines ensures the continuous customer loyalty to the brand. This is another feature that is obligatory for the survival of every company exposed to global markets.
-Strong focus on research and development- in today’s changing environment it is sufficient for every company to realize the significance of the strive for continuous improvements and innovations. As we have seen in the history, many companies have failed to survive exactly because they cannot catch up with their progress-oriented competitors. However, the Nestle Company is one of those that succeeded to boasts the largest R & D budget out of all the F & B companies- $1,847.2 million. The constant renovation of the product line ensures keeping major brands from slipping into decline as well as the continuous profitability of the company and a competitive edge on the competition. The huge investments that Nestle is making in Information Technologies, is another step necessary for the survival in today’s innovational world. Thus, the company can keep track of all the newest cost-reducing methods as...