MCD1020 Nestlé SWOT - SWOT PDF

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SWOT Analysis of Nestlé Nestlé is a Swiss company, which is also one of the most famous food companies in the world, has 447 factories in 194 countries and approximately 8000 kinds of products including coffee, baby food, bottle water, chocolate, tea and some other things. As measured by revenues, Nestlé used to be NO.1 in 2011, and it was listed NO.14 in the FT NO.500. It is such a strong brand that we can find its product in almost every corner in the world. Next, the SWOT analysis can help us realize this popular company in strengths, weaknesses, opportunities and threats.

Strengths 

First, the development in 194 countries can extend markets and channels of selling goods. Then, the varieties of products can bring different kinds of consumers, for example, the milk powder and nutrition can be sold to baby and old people respectively, and everyone can buy coffee, drinks and snacks.

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It is an almost impossible thing for any other operating to compete against Nestlé, because its annual earnings can reach more than one billion dollars from the 29 operating brands.

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Nestlé is a well known brand with good quality and many advertisements. As a result, customers trust this brand more than other brands, as the products are used by millions of people everyday.

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Nestlé keeps cooperation with some strong brands while finding another operating to create new products at the same time. It not only can make the brand

be active but also can guarantee the cooperation be secure. 

The prices of products are easy to be accepted, even though the profit of every single good is not as high as expected, but the consumption can display whether the profit is enough and the strategy is successful.

Weaknesses 

All the products have their own formula, which ask the process and material to be controlled rigorously. However, it is inability to provide consistency in the quality of the their food products, hence the goods will be influenced by the suppliers and other objective reasons.

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There always be some issues when manage and control a large company such as Nestlé. For example, the amount of chemicals used in milk powder exceeded the secure statement in China in 2008 and Nestlé suppliers employed the child labor in 2005. Every department, factory and staff in 194 countries will make mistakes in several steps. Moreover, no matter who should be responsible to the mistakes, it will final affect the image of Nestlé.

Opportunities 

People nowadays attach more importance on healthy and the quality of life, so the nutritive goods are their preference. The foundation of Nestlé’s nutrition products is hard, hence expand this part of market will not be difficult.

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Using stars as spokesman and holding theme activities both can attract consumers, the advertisement should be designed according to the products’

properties and the level of customers.

Threats 

The higher demand of consumers of goods influences the quantity of raw materials. Nestlé have to keep balance of the demand and supply, which need to find more resources and labor force. The increase of the inputs means the company will take on more risk.

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The brand’s irresponsibility to run thorough quality assurance on its products resulted in providing contaminated food and other products on the market, which can hurt the reputation of the company and lead to losses.

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Contending with the similar strong company such as PepsiCo, Coca-Cola will hardly stop. All of the companies which have leading positions in the same market with Nestlé are the threatens.

In conclusion, there is no denying that Nestlé is one the most successful food companies in the world, this SWOT analysis displays that Nestlé has a lot of strengths about consumptions, customers, management approach, cooperative partner and high quality. Then, the analysis can help Nestlé determine how to increase internal strengths. The weaknesses, opportunities and threats analysis can provide a general direction to Nestlé in its development and progress. By using correct management approach such as this situational analysis can help Nestlé goes well....