Marketing

Nestle 2008
CASE STUDY ANALYSIS Iola Ariana Mugica s3314547

With over 140 years in the food manufacturing market, Nestlé is a Swiss headquartered, operating 449 factories and employing 278,000employees worldwide. It’s considered the world’s largest food and nutrition company, operating across 86 countries in the world. Nestlé’s portfolio is currently conformed by 6000 brands with a verywide range of products and services. In addition, Nestle has complemented their products by offering health and nutritional oriented services. Overall, Nestle performance in this industry is strong andsolid (net profit of 10.64 billion Swiss francs in 2007) to remain as leader and achieve profitable growth. However, a number of external and internal factors could compromise their vision towards‘Nutrition, Health and Wellness’ to move forward in the future. CRITICAL SUCCESS FACTORS IN THIS INDUSTRY R&D and technology are crucial to stay competitive and respond globally with innovative solutions tothe constantly changing consumer needs; especially in health and nutrition matters. Economics of scales is vital to gain enough profits in order to maintain the operational margins of thisinternational organization. Supply chain logistics are substantial to efficiently supply the global market. Pricing and quality are important factors to position successfully in the market. Suppliers also playa big role internationally. Other CSF are: distribution, brand, marketing, management, innovation, acquisitions and joint ventures. BIG ISSUES Globalization pressures opportunities to expand into theemerging markets and it also crates tension in internal operations when these markets become economically stronger; sometimes dictating the kind of products Nestle should sell (e.g. China). Inaddition, there are internal issues on how to balance the local autonomy with global coordination in order to develop the right products. As the industry becomes mature and yet competition is increasing,...