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Swot And Marketing Of Nestlé Essay

1749 words - 7 pages

SWOT Analysis belongs to one of the most valuable materials in a company. Every company creates its own chart. It shows company’s positives so-called strengths and opportunities, and negatives which are weaknesses and threats. Basically, it is an overview of company’s aspects, what company is good in, what it should improve. Two bottom boxes of SWOT Analysis chart show what the company should be aware of as to the threats and what are new upcoming opportunities it can obtain (SWOT Analysis, n.d., Investopedia, para 1)

Nestlé’s most recent SWOT Analysis for the year 2013 provide couple of issues in each box. Another data provided shows the analysis for specific countries and its strenghts, weaknesses, opportunities, and threats.

Strengths are very important for the company to build on. They show what the company is best in doing, its achievements. Nestlé being one of the biggest and most recognizable companies in the world, it has a lot of strengths. The company name Nestlé is known almost everywhere and its products are used every day by millions of people. The brand reputation is valued at $7 billion. In the food and beverage sector, this business offers a wide range of products, it operates 29 brands with more than 8.000 merchandises. These numbers and statistics make it hard for other companies in the same sector compete and overcome these results.
(Strategic Management Insight, 2013, „Strenghts“ section, points 1,5)

Throughout the existence, the company tries to reach customer’s best satisfaction by constant improvement of products, as well as by innovating new ones. In 2013, the company introduced new flavors of chocolate, different packaging and modifications of shapes of a product. (Nestlé International Travel Retail SA, 2014, „Innovations and Renovations 2013“ section)
Communication and product availability are significant to customers. Currently, the society’s trend is to live healthy and active life. Accordingly, Nestlé has adapted their products to these current trends. (Iftikhar, Hashmi, Faiz, Javaid, & Sakhi, n.d., p. 15, chart) In 2010, they announced that the company will invest roughly $500 million over 10 years time in production of products with health-benefit. It will also deepen its pharmaceutical and nutrition research in order to evolve products that may help to prevent different kinds of illnesses. (Mijuk, 2010, para 1-2)

As every company, Nestlé has its weaknesses that can be eliminated by analyzing sensitive areas. When Nestlé’s new products are entering the market, there might be a problem with already existing well-known companies with similar products. Therefore, the competition may be higher. One of the best examples for this case it Nestle Plain Yogurt. It has been unable to make its markets in the United States. The competition has overcome the product. (Iftikhar, Hashmi, Faiz, Javaid, & Sakhi, n.d., p. 15, chart)

In the recent couple of years, Nestlé has had issues with food contamination and poor quality...

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