Business Management – Exploring Strategy December 6th 2012
1 INTRODUCTION 2 NESTLE WATERS PROFIL 2.1 From the beginning to nowadays 2.1.1 History 2.1.2 Nestle Waters contemporary mission 2.2 Nestle Waters strategic capabilities 2.2.1 Nestle waters resources 126.96.36.199 Physical capabilities 188.8.131.52 Financial capabilities 184.108.40.206 Human capabilities 2.2.2 SWOT analysis 220.127.116.11 Strengths 18.104.22.168 Weaknesses 22.214.171.124 Opportunities 126.96.36.199 Threats 2.3 Nestle Waters Environment 2.3.1 PESTEL analysis 188.8.131.52 Political level 184.108.40.206 Economic level 220.127.116.11 Social level 18.104.22.168 Environmental level 22.214.171.124 Technological level 126.96.36.199 Legal level 2.3.2 Competitive forces analysis 188.8.131.52 Threat of new entrants 184.108.40.206 Threat of supplier power 220.127.116.11 Threat of substitute goods 18.104.22.168 Threat of customer power 22.214.171.124 Rivalry among competitors 3 NESTLE WATERS STRATEGIES 3.1 Communication based on shared value 3.2 Innovation for sustainable development 3.3 The Lean management 4 CONCLUSIONS REFERENCE LIST APPENDICES
3 3 4 4 5 5 5
6 6 7 7 8 8 9 9 10 10 10
11 12 12 14 15 17
The attention given to fresh water and its waste is a major issue of our century. The incredible population growth that our planet will face, in the next twenty-five years, will necessarily be accompanied by an explosion of water consumption and degradation of its quality (P. R.
1990). There are two different ways to consume water, drink the tap water or buy bottled water. The attractiveness and dynamism of the bottled water market may surprise considering existing obstacles: Many sources of supply exist, Products that were nearly impossible to tell apart by taste, A free substitute exist; tap water
• • •
The bottled water market is facing major changes over the last 10 years. While some players were long established, new major competitors entered in the market and deeply changed it. In the field of bottled water a company seems to radiate at international level: Nestle Water, the water division of the Nestle SA group, leader on the food and beverage market. It seems interesting to analyse Nestle Waters strategy to
understand the reason of his success on the bottled water field and what is done to ensure another 140 years of existence to the company. The first part of this report will be dedicated to Nestle water profile and the second part to Nestle Waters strategy to preserve its position on the market.
2. NESTLE WATERS PROFIL
2.1 From the beginning to nowadays
2.1.2 History The Swiss multinational Nestle, world leader on food and beverage market was born in 1867 when Henry Nestle creates and markets milk powder for baby. It was only in 1969 with the acquisition of 30% Vittel stake that Nestle settles permanently on the bottled market. The company became Vittel majority shareholder in 1987, Perrier Group in 1992 and Sanpellegrino in 1998. In 2002 the water division of Nestle officially became "Nestle Waters" (Nestle waters.com website, 2012). . 2.1.1 Nestle Waters contemporary mission Today, the Nestle waters mission is to help consumers deal with the growing public health challenges. According to Nestle Waters website (Nestle.com, 2012) bottled water is the healthiest packaged beverage thanks to: Its absence of calories, Its controlled origins, Its outstanding quality, Its taste Its convenience.
The long-term vision of the group is to make Nestle Waters the reference company in nutrition, health and wellness.
2.2 Nestle Waters strategic capabilities To understand the power of Nestle Waters it is interesting to analyse strategic capabilities that contribute to its long-term survival and its competitive advantage. Resources configuration within a challenging environment is an important part of the company strategy. By this way the...