Nestle - Report

Topics: Marketing, Strategic management, Strategy Pages: 17 (5379 words) Published: April 26, 2012
Abstract
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.

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Table of Contents

1.Introduction3
2.Definitions of strategy4
3. Strategy Definitions applied to Nestle7
4.Industries and markets where Nestle compete8
5.Structure and dynamic of this markets9
6.Critical success factors of competing in the Food and Beverage Market.10 7.Nestle differentiation from competitors11
8.Resources, competencies and capabilities12
9.External Analysis13
9.1 Macro Environment of Nestle13
9.2 Micro Environment of Nestle14
10.Strategic Options15
11.Strategy recommended17
12.Conclusion18
13.Reference20
14.Appendix21

1. Introduction

Nowadays it is not essay for companies to maintain a high position in market shares. When it comes to companies with many years of experience and high yields in the markets is challenge to keep reputation and more difficult to overcome that status. At the same time, there are many external factors that influence in customers behaviours and needs. However, companies do not have power to change those external problems but they can change themselves. It is important that companies see what happened in the past to predict the future; the history of any corporation is needed to survive in this competitor world.

This report will analyse and evaluate the case of Nestle in 2008, giving the definitions of marketing strategies applied to this company which are the base of success in any corporation. Moreover, this work will be define the industries and markets in which Nestle compete, the structure and dynamic of these markets, the critical success factors of competing in this field, how Nestle differentiate itself from other competitors, resources, competences and capabilities. Another important point that will be mentioned is the major macro and micro environmental strategic marketing issues that Nestle faced in terms of opportunities or threats. Additionally, it will be evaluated the most appropriate way for Nestle to compete in its market place, taking into account the strategies that they already have implemented.

To summarize, this report will be recommend the most accurate strategy for Nestle to continue growing in a long term period, as it has done so far. It will be given different alternatives to reach all the expectations of customers and maintain potential innovation spirit in this competitive and globalised world.

Definitions of strategy
In the field of Marketing Strategy the concept of the term strategy vary depending on different points of view and it has been changing over the time. There are many ways to define this word which help marketers to understand this useful but abstract concept. The definition of “strategy” started from military to business languages....

Cited: in Nickols, 2006). The Five Forces is the framework exposed for this professor.
2. Customers | 4. Geographic areas |
Treacy and Wiersema (1993) This definition identify three discipline values for strategy term (Nickols, 2006):
According to Aaker and McLoughlin (2007), there is another important point of business strategy and it is defined by four dimensions:
* The Product – Market Investment Strategy – Where to compete
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