Nestle SWOT

Topics: Nutrition, Product management, New product development Pages: 6 (1794 words) Published: May 5, 2014
SWOT Analysis of Nestle Australia Ltd
Executive Summary
This SWOT (strength, weakness, opportunity, threat) report examines those four areas of a new Nestle product in the market. This product has a new and unique mixture that has never been in the local market shelves ever before. Although this report is mainly about the new product, it also looks at the history of Nestle and goes into depth about the SWOT of the company. Introduction and background: This area provides a brief overview of the company’s products that has already been in the market, its current market, and relevant history of the breakfast products of Nestle. SWOT table: A one page table that state the strengths, weaknesses, opportunities and threats of this product. Findings: A one page explanation of the points listed in the SWOT table, and ranking it from the most important to the least. Recommendations: A two page description of the new product, and justification of the choice made by choosing this product using at least one of the four analysis points. Introduction

Nestle is the world’s leading food company. Nestle was found in 1866 by Henri Nestle and became one of the biggest food and beverage company. Nestle started at providing babies food with high quality. However, in recent years, Nestle has focused on nutrition, health and wellbeing. Since establishment until now, Nestle has been through 6 stages:

1866 – 1918: Food products for babies and Powder milk;
1918 – 1944: Chocolate, Coffee and Fresh milk;
1944 – 1975: Fast food Maggi;
1975 – 1981: Fast food products;
1981 – 1996: Yogurt and Butter;
1966 – Present: Ice cream.

Nestle develops its company by the way of acquisition; they acquire other international companies to expand their market. However, it also faces the risk of controlling their business with a large market from different locations. Many companies enter into the food industry which has increased the number of competitors in this market. Nestle has focused on finding and developing new products that concentrate on health and how to maintain customer’s health. The main competitors of Nestle are Unilever, PepsiCo Inc., Kraft Foods Group Inc., and Groupe Danone S.A. Through five years, the profit of Nestle Australia was decrease because of the competition of other companies; in 2012 it profit was 248,505 million.

Table 1: Financial of Nestle in the last 5 years

This report will recognize some strengths, weakness, opportunity and threat for Nestle. The below section has taken a brief overview of SWOT analysis. In the discussion section, the key of strengths, weaknesses, opportunities and weaknesses are analyzed in more particular. Finally, the suggestion for the company is made.

SWOT Analysis

Strength
Weakness
1. World's largest beverage and food company ($7 billion in revenue). 2. Affordable product price
3. Wide range of product catalogue
4. Research & Development capabilities (food and nutrition research) 5. Distribution channels and geographic presence
6. Competency in mergers and acquisitions

1. Inability to provide consistent quality in food products
2. Employees’ safety failure
3. Customer fears to try the unique mixture product of nestle 4. High Spending on advertising
5. Weak implementation of Corporate Social Responsibility
Opportunities
Threat
1. Brand image (advertising and promoting targeting children) 2. Increasing demand for healthier food products
3. Establishing new joint ventures
4. Uses many type of marketing to promote their product
1. Competition
2. Substitute goods
3. Food contamination
4. Rising of raw material price
5. Trend towards healthy eating

Discussion
Strengths
As Nestlé is a world renowned brand it has certain key core competencies. One would be the unmatched product and brand portfolio. The business offers one of the widest portfolios of food and brewery products in its sector. It also operates 29 brands that earn more than $1...

References: Navi, G 2009, Nestle, Scribd, viewed 18th September 2013, http://www.scribd.com/doc/21544545/Introduction-Nestle-Was-Founded-in-1866-by-Henri-Nestle-And
Nestle 2013, Nutrition, Health & Wellness - New Product Development at Nestlé, Business Case Studies, viewed 18 September 2013, http://businesscasestudies.co.uk/nestle/nutrition-health-wellness-new-product-development-at-nestle/introduction.html#axzz2f1LLXlr9
Nestle Group Limited 2011, The World’s leading Health, Wellness and Nutrition Company: Annual Report 2011, Nestle Group Limited, viewed 18 September 2013,
Nestle 2013, About Us, Nestle, viewed 18 September 2013,
Interbrand 2013, Nestle, viewed 18 September 2013, retrieved from Interbrand database
Overview of the Nestlé Oceania region 2013, Nestle, viewed 13 September 2013,
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