Published by MBA Skool Team, Last Updated: August 20, 2021
SWOT analysis of Nestle analyses the brand by its strengths, weaknesses, opportunities & threats. In Nestle SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Nestle to benchmark its business & performance as compared to the competitors. Nestle is one of the leading brands in the food & beverages sector.
The article below lists the Nestle SWOT (Strengths, Weaknesses, Opportunities, Threats), top Nestle competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
Nestle is one of the biggest food processing, health and wellness brand in the world
People looking for good quality, branded products like foods, dairy products, baby food, pet food, confectioneries, etc.
Urban middle and upper middle class
Nestle is a world class company providing good quality, healthy and tasty food and beverages
Nestle Product Portfolio
1. Nestle Milkybar
2. Nestle MilkMaid
3. Nestle Everyday Dairy Whitener
6. Nestle Kitkat
7. Nestle Bar One
8. Nestle Polo
The above mentioned brands are the prominent products under the Nestle product portfolio.
SWOT Analysis of Nestle
For Nestle, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Let us start the Nestle SWOT Analysis:
The strengths of Nestle looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Nestle :
1. Nestle has an experience of more than 140 years in the industry 2. Nestle is one the world's biggest brand and is consistently in the Fortune 500 list 3. The company has a global reach with presence in over 86 countries 4. Employee strength of around 330,000 people worldwide
5. Nestle offers a wide product range including baby food, pet food, dairy products, confectioneries, pharmaceuticals, beverages, etc.
6. Popular brands owned like Maggi, Haagen-Dazs, Boost, Kit Kat, Nescafe, etc.
7. Largest R&D network facilitating continuous innovation
8. Nestle has a very strong supply chain network and products are available through groceries, supermarkets and even online worldwide
9. C.S.R. activities for rural development, environment protection, water conservation,, etc.
10. Mergers and acquisitions and joint ventures have strengthened Nestle's market position
11. Strong marketing and advertising through TVCs, print media, online ads, OOH and sponsoships
12. Brand loyalty and brand recall of Nestle is extremely high for the brand
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Nestle SWOT Analysis:
1.Being a big global brand, numerous controversies in different countries of operation cause issues 2.Strong competition by other brands means limited market share growth for Nestle
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Nestle SWOT Analysis:
1.Introduce more health based food products to tap the health consciousness amongst consumers 2.Expanding focus on developing economies can boost business for Nestle 3.Continue with acquisitions and joint ventures to increase its market share
4.Try to capture the rural markets
5. Tie-ups with leading hotel chains, restaurants, schools, government institutes etc can help Nestle maintain its market dominance
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Nestle are as mentioned:
1.Failure of the complex supply chain at low levels can affect the business 2.Economic instability and recession in countries can adversely affect Nestle because it is a global player 3.Events like Eurozone crisis, as most of its revenue comes from Europe
4.Increase in cost of raw materials can affect profit margins
5.Stiff competition in all product segments
There are several brands in the market which are competing for the same set of customers. Below are the top 11 competitors of Nestle:
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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