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Pages: 20
Category: Business and Industry
Date Submitted: 10/12/2016 06:56 AM
Nestle Strategy Report
Table of Contents
Executive summary 4
External Environment Analysis 6
Economic 6
Social 7
Legal/Political 10
Technological 10
Environmental 10
Cultural 11
Competitor analysis 13
Threat of New Entrants 13
Threat of Substitute Goods 13
Bargaining Power of Suppliers 13
Bargaining Power of Customers 14
Competitive Rivalry within the Industry 14
Strategic capabilities and weaknesses 15
Strengths 15
Weaknesses 17
Recommendations/Conclusion 19
References 22
Appendices 24
Team organization 25
Executive summary
Dear Mr.Bulcke,
The ESPEME Consulting Group is proud to present to you the 2014 edition of our annual business report on Nestlé. In the first section of this report, we analyze Nestlé’s external environment, highlighting the major trends and the opportunities and threats resulting from these trends. The year 2014 is still market by anemic growth in mature markets, while growth in emerging economies has slowed down. However, as disposable incomes increase and middle classes develop, emerging markets are still an untapped source of growth for Nestlé. Socially, consumers are increasingly aware of their ability to influence their health through diets and lifestyles, thus modifying their habits and preferences. The effects of the last economic crisis have led to a greater private label penetration, a trend Nestlé must watch out for. Changes in regulation, leading to increased compliance costs, along with the water scarcity problem could impact Nestlé in the near to distant future.
Secondly, we focus on Nestlé’s strategic capabilities and the company’s ability to react to the opportunities and threats mentioned in the previous section. Unmatched brand portfolio, geographic presence (especially in emerging markets) and R&D allow Nestlé to react quickly to changes in the external environment. 2013 results, with successful integration of acquisitions, have shown that Nestlé has successfully commenced its transition into a...