Nestle SWOT analysis

Topics: Brand, Strategic management, Economics Pages: 3 (254 words) Published: October 12, 2013
Nestle SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Nestle
Nestlé is the largest food and beverage company in the world. The group's products include beverages, milk based products, ice creams, prepared dishes, and pharmaceutical products. Nestlé primarily operates in Europe, the Americas, Asia, Oceania and Africa. The group is headquartered in Vevey, Switzerland and employs 283,000 people.

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Nestle SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor

TYPE OF FACTOR
Favorable

Internal

Strengths

Unfavorable

Weaknesses

Ability to leverage

Increasing

strong brand name to

instances of product

generate sales

recalls hampering

Ability to customize

brand equity

products to the local
market conditions
Strong global
operations with
diversified revenue
base
Research and
development
capabilities
External

Opportunities

Threats

Transition to a

Compliance issue

'nutrition and well-

resulting in penalty

being' company

payments

Focus on developing

Macro economic

and emerging

factors

Economies

Allegations of

Booming out of home

unethical business

eating market

activities

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