Nestle Company Analysis - Competition, Growth and SWOT

Company background and background

In 1867, there is a rapid rise in infant mortality by the reason why that the babies were unable to feed using their company mothers. Therefore, Henri Nestlé - a German man developed a kind of milk which based on food for the newborn child. In five years later, his products were being sold around the world as the right food for many ages. While using significant development, Nestlé soon became a multinational industry for the reputation in providing the high-quality condensed milk. Certainly, Nestlé sustained its succeed by way of a step into the delicious chocolate industry. Although in 1875 Henri decided to sell the company to his three local businessmen in Vevey however the name has been maintained till now. They chosen skilled staff to extend their business. Later in 1904, Nestlé delicious chocolate was first launched to the market to compete with chocolate pub Hershey. In 1905, Nestlé ventured on the merger with the Anglo-Swiss Condensed Dairy company to create a dynamic and potential enterprise. During 1906, Australia is among the most second major export market for Nestlé and offered by an enormous system of suppliers and sales people. Package Kat, After Eight and Smartie respectively put into its portfolio. Australia's hq became the headquarter of Oceania Region, which includes New Zealand, Australia and Pacific Island in 1999 and its now the chief executive official is Trevor Clayton.

Company Operations

Nestle is a preferred hallmark in Australia due to its variety brands and the ability of satisfying varieties of customer. Based on the Australian's utilization needs, its products are categorized into 10 organizations: Drinks, Espresso Products, Breakfast Cereals, Chocolate & Confectionery Products, Snack foods & Muesli Bars, Medicated Lozenges, Formula Bases &Sauces, Noodles, Cooking Ingredients and Food preparation Milks.

According to the Aus Food Reports that Nestlé's chocolate products have been rated at the second position after Cadbury of the very best 15 chocolate pubs in Australia. Nestlé's products are now nationwide advertising through the shops.

Australia, New Zealand, and Pacific Island are elements of the Oceania region. The Nestle Oceania is the place of work of more than 5, 000 employees within over 70 factories, office buildings and the circulation centers placed over the region. As yet, Nestle has totally 447 factories in 86 countries across the world with correctly 330, 000 employees. Products are being sold in 196 countries and be the world's head company in diet, health, and health and fitness with an unparalleled portfolio greater than 2, 000 global and local brands.

Nestlé fits the customers' need by starting various brands of chocolates includes Set Kat, Aero, Smarties, Crunch and Nestlé. Customers always have many selections with Nestlé's delicious chocolate as the many designs, sizes and preferences such as Set Kat

The pie chart below showed the marketplace share of Australia Nestlé's Chocolates bars with others rivals in 2015:

The line graph of the marketplace growth of Australia Nestlé's Chocolates bars from 2011-2013

Company's quest statement

"Nestlé is. . .

. . . the world's leading nutrition, health, and health and fitness company. Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in an array of food and beverage categories and eating events, from day to night time. "

The mission statement of Nestle is quite good. This is a customer-oriented objective since it concentrates on the consumer's need not the sales. It is not too long but not too short and it has a clear content which is not hard to comprehend. The mission affirmation details that Nestle and its staff have always centered on their quality because they want to supply the best as well as the most healthy, nutritious options with their consumers to add their life condition. Nestle improves itself by the ability providing the fun of food and beverages which reveal that they give people the reason why to invest money. However, the clients couldn't completely trust Nestle so far as it points out the implementation plan. Additionally, it struggles to see any central value of the business in the statement such as teamwork, integrity or dedication. Despite the big company, Nestle cannot stand apart from its rivals until it has a comprehensively specific mission declaration.

SWOT Analysis

  • Strengths
  • Product diversity

Nestle has run a huge number of popular brands until now. The business manages to supply diverse type of food and beverages in order to fit the global market environment also to satisfy their clients' requirement. Naturally, this strength not only impulses the company's income but significantly multiply their reputation worldwide so as to maintain their devoted customers and expose to the new ones.

  • Strongly concentrate on researcher and development

The Nestle Researcher and Development (R&D) were proven to aim at innovating and guarantying the product quality as well as the safeness of each product. Experts in the business recognize that food can affect and impact human being lives; therefore Nestlé thinks that its responsibility is to make effort in seeking a remedy to create the greater nutritious and more healthy food to provide billions of people or individuals all over the world. To facilitate researching, Nestle has 3 Research & Researcher centers and 31 Product Technology Centres and R&D centers worldwide with about over 5, 000 employees includes nutritionists, dietitians and individuals. Their tries are worth to get the trustworthy from customers' choice selection.

  • Weakness
  • Less ability to provide consistent quality in food products

Customers have been warned about the meals contaminants and poor characteristics products from Nestle and the chance of cancer when working with Nestle Milk. Although they are all rumours without any proof, the image of the company might be negatively affected the ingestion and level of consumers.

  • Opportunities
  • Acquisitions and mergers

Nestle is currently owning a wide range of well-being products which bring them much income on a yearly basis. This money can provide them chance to acquire more start-ups to keep expanding their trademark throughout the world. By this way, they aren't only earning but also creating new products with minimal monetary cost. Furthermore, Nestle might be given chances to co-operate with other brands that have reputation such as Coca-Cola - in 2001, the Coca-Cola Company and Nestle S. A released their jv to tap a sharp expansion of beverage segments.

  • Strong researcher & development

Nestle has a great and strong team about researching and producing. It is edge because they can help Nestle to kick off more new products in future and grow the market in places even the places with the hard condition, for example Africa - in 2016, they discovered that the Africans had too little healthy red bloodstream cells which move oxygen around your body in other conditions is iron insufficiency. Thus, Nestle made a decision to tackle the challenge with the addition of relevant substances which can help them into their most popular products - Maggi bouillon

  • Demand much healthier food

People have craze to choose the best things for themself and their families especially food which is the most important and indispensable part of daily life. Balanced diet definitely has great intensity of buying and consuming. The mission of Nestle is to try their finest provide the regularly healthy and wholesome food in response to the demand from customers.

  • Threats
  • Food protection

The company must take legal responsibility if there is any problem happens which relates to food security. Therefore, Nestle must be careful in the producing process even the tiniest point. In such an event, the business might be required to concern product recall and waring, which may devastate the business's reputation.

  • Rising uncooked food price

With regard to the progress of global economics, the value of recycleables is growing regularly. Nestle must face with the problem that they are required to increase their prices but it maybe led to a decrease in consumption while they will suffer capital loss if they keep carefully the price at same stage.

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