Stratagic
The success of Nestle in Chinese market
Summary
Nestle whose headquarter is located in Switzerland is the world 's largest food company, and has set up its first sales office in Shanghai China in 1908. At present, Nestle has been known well and gained the trust of Chinese consumers, and its coffee products have occupied 80% of the market share in Chinese coffee market. Considering the success of Nestle in Chinese market, this report will mainly study the success of Nestle coffee to provide references for other coffee enterprises in Chinese market. Firstly, through using some analytical tools including PESTEL and five forces model, this report analyses the external environment of Toyota and reaches the opportunities and threats faced by Nestle and though value chain analysis, this report reaches the strengths and weaknesses of Nestle. Last, this report analyses the differentiation strategy from brand, products and service adopted by Nestle and reaches that Nestle should continue to implement differentiation strategy deeply because of the favourable current economic environment, intense competition within the industry and the customer loyalty brought by brand differentiation.
Table of contents
1 Introduction 1
2 Mainbody 2 2.1 PESTLE analysis 2 2.1.1 Political factor 2 2.1.2 Economic factor 3 2.1.3 Social factor 3 2.1.4 Technical factor 3 2.1.5 Legal factor 4 2.1.6 Environmental factor 4 2.2 Five forces analysis 5 2.2.1 Threats of new entrants 5 2.2.2 Threats of substitute products or service 5 2.2.3 Bargaining power of suppliers 6 2.2.4 Bargaining power of buyers 6 2.2.5 Rivalry among existing competitors 6 2.3 Opportunities and threats 7 2.3.1 Opportunities 7 2.3.2 Threats 7 2.4 Value chain analysis 7 2.5 Strength and weakness 9 2.5.1 Strength 9 2.5.2 Weakness 10 2.6 Porter 's Generic strategy 10
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Summary
Nestle whose headquarter is located in Switzerland is the world 's largest food company, and has set up its first sales office in Shanghai China in 1908. At present, Nestle has been known well and gained the trust of Chinese consumers, and its coffee products have occupied 80% of the market share in Chinese coffee market. Considering the success of Nestle in Chinese market, this report will mainly study the success of Nestle coffee to provide references for other coffee enterprises in Chinese market. Firstly, through using some analytical tools including PESTEL and five forces model, this report analyses the external environment of Toyota and reaches the opportunities and threats faced by Nestle and though value chain analysis, this report reaches the strengths and weaknesses of Nestle. Last, this report analyses the differentiation strategy from brand, products and service adopted by Nestle and reaches that Nestle should continue to implement differentiation strategy deeply because of the favourable current economic environment, intense competition within the industry and the customer loyalty brought by brand differentiation.
Table of contents
1 Introduction 1
2 Mainbody 2 2.1 PESTLE analysis 2 2.1.1 Political factor 2 2.1.2 Economic factor 3 2.1.3 Social factor 3 2.1.4 Technical factor 3 2.1.5 Legal factor 4 2.1.6 Environmental factor 4 2.2 Five forces analysis 5 2.2.1 Threats of new entrants 5 2.2.2 Threats of substitute products or service 5 2.2.3 Bargaining power of suppliers 6 2.2.4 Bargaining power of buyers 6 2.2.5 Rivalry among existing competitors 6 2.3 Opportunities and threats 7 2.3.1 Opportunities 7 2.3.2 Threats 7 2.4 Value chain analysis 7 2.5 Strength and weakness 9 2.5.1 Strength 9 2.5.2 Weakness 10 2.6 Porter 's Generic strategy 10
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