Nestlé is the world’s largest food and beverage company. We have more than 2000 brands ranging from global icons to local favourites, and we are present in 191 countries around the world. - (https://www.nestle.in/)
SWOT Analysis
Strengths:
• The company targets many different markets with different products
• It has good relationships with retailers and other big brands such as Coca-Cola
• The company is well known in most countries and is well-established in Europe and The United States which are two of the largest national economies.
• The diverse variety of products means that they successfully fit into many different markets and spaces within them.
• Nestle is a well trusted and recognised brand, especially in families.
• The brand has the ability to change, grow and develop.
• Growing middle classes in nations such as China and India create larger and broader markets for Nestle’s products
Weaknesses
• It’s sales relies heavily on a few well-recognised brands which mean that any sudden changes in consumer behaviour could disrupt the company.
• A lot of their products are in big retailers stores such as Walmart who have the power to decide the price and placement of their products in store.
• Many new modern brands are entering the market which could be detrimental to traditional brands such as Nestle.
• Nestle has a bad reputation due to previous incidences such as the creation of their baby formula, which didn’t specify that clean water was needed when mixing the formula, in turn causing sicknesses.
Opportunities
• Because Nestle is trusted by families, they are able to create a new line of products that people would feel comfortable enough to try.
• Prepackaged foods are becoming increasingly more popular due to people living busy lifestyles, therefore, Nestle has a chance to continue to grow by responding to the demand of prepackaged food.
• People are becoming more health and fitness conscious, this gives Nestle the opportunity to create a line of products for a more health-conscious target market.
Threats
• Cadbury’s Moro bar is a direct threat to Nestle due to its popularity.
• People want to know what’s in their food due to suspicion towards unknown ingredients. Because of this people are purchasing fresh organic foods as well as checking labels before buying prepackaged foods.