Neste Swot

Question 1- Swot and strategy

1. Unmatched product and brand portfolio. The business offers one of the widest portfolio of food and brewery products in its sector. It also operates 29 brands that earn more than R1 billion in annual revenues. With more than 8,000 products it is hard for any other corporate to compete against Nestlé.

2. R&D capabilities. Nestlé invested more than R2 billion in R&D in 2014. It’s introducing new and redesigned products every year, strengthening firm’s competitive advantage.

3. Distribution channels and geographic presence. Nestlé runs in more than 100 countries and has extensive distribution channel all over the world, which supports its operations globally.

4. Competency in mergers and acquisitions. Over the years Nestlé has been forming successful partnerships and acquiring other companies in order to grow and maintain its leadership in the market.

5. Brand reputation valued at $7 billion. Nestlé is known almost everywhere and has a reputable brand for its products that are used by millions every day.

Weaknesses

1. Inability to provide consistent quality in food products. Nestlé has been recalling many products from trade due to food contamination or poor quality supplies. This does not only hurt firm’s sales but its image as well as the business is unable to control quality of the products.

2. Weak implementation of CSR. The company has announced and is involved in many programs that aim to make company more eco-friendly and improving the working conditions of its suppliers. Still, Nestlé receives a lot criticism over the effectiveness of its programs.

Opportunities

1. Increasing demand for healthier food products. The trend of buying and consuming only healthy food products is a major shift in consumer tastes and opens up an immense market for companies. Currently, Nestlé tries to introduce more healthy food products in response to the trend.

2. Acquiring startups specializing in...