SCHOOL OF BUSINESS & LAW
UNIVERSITY OF GLOUCESTERSHIRE
The nutrition business - Health and
“Our core aim is to enhance the quality of consumers lives every
day, everywhere by offering tastier and healthier food and
beverage choices and encouraging a healthy lifestyle. We
express this via our corporate proposition 'Good Food, Good
Nestle Nutrition program:
products for infants
young and elderly
health conscious consumers
Nestlé Home Care (high-nutrition foods
and nutrition-related services)
According to the Ansoff Matrix, diversification
is the point where the company moves away
from existing market and existing products.
The strategy of NESTLÉ when launching the
nutrition business is to achieve different
markets through different products.
It is a competitive advantage that NESTLÉ
has created recently. However this strategy
does not drive NESTLÉ to a Blue Ocean as it
does not create an unknown market.
The competition still exists in a red ocean,
where many companies try to get greater
share of existing demand.
NESTLÉ´s new strategy
doesn’t satisfy the
Sequency of BOS. The
reasons are for the
Price, which is not
accessible to the mass of
buyers and also because
of the Cost, as the
company had to spend a
lot on R&D for the new
range of health and
Nestle's market leadership and leading
brands provide economy of scale which
is important as NESTLÉ has high product
development costs. It takes advantages
on country specific differences,addapting
it´s products to the host country´s.
The presence of global customers
is a market driver that could be
related to NESTLÉ´s need for
Interdependence between countries
increases the need of internationalization
specially companies like NESTLÉ, which
the parent country´s market is too small
and the competition is fierce. Globalized
competitors would pressure NESTLÉ
to adopt an international strategy,
as they would be competing with them
inside NESTLÉ´s in the domestic market.
NESTLÉ´s strategy in foreing markets
avoid the disadvantages of policies
issues, operationg mainly through
joint ventures and partnerships with
local companies avoiding this risks.
“Part of Nestle's recent success
has been down to its ability to weather
currency and raw material price
Fluctuations. Considering the strategy
of acquisition the company will be able
In integration of these acquisitions
will only improve profits further”
Unique capabilities: NESTLÉ exploits
advantages in technologies and
scientific capabilities around the world.
It has strong R&D investments in many
countries. Product tehcnology centers
are present in 34 countries and 4
in-house fundamental research centres
counts with partnerships with
universsities around the world in order
to exchange experiences with their
centres and explore overseas knownledge in the filed of
new technologies and development.
strategy is global. The
coordination of the
activities is high and
Activities is disperse.
Joint ventures and alliances
NESTLÉ owns some world´s
well known brands across
diverse products categories.
It´s diverse portifolio is it´s
global leadership. Enters
foreing countries through
joint ventures and alliances
that avoid the risks of lack
of knownlege on target country
1/3 of the Britain population has not a
perception of the NESTLÉ name. The
company fail in the UK in what concerns
linking it´s name to it´s well known
brands. Less then 5% of NESTLÉ´s total
profit is from UK market.
The marketing strategies in the UK market
are weak. There is a need for
consolidation of the advertisement in a
global pattern. In the UK NESTLÉ works
with some local agencies.
CEO is not likely to standardization of
products, as he thinks food needs to be to
customized to the local market conditions
in each country.
The NESTLÉ brand needs to be more
evident in the packaging in the UK for
gaining the credibility the brand has all
over the world.
owns 32 billionaire
than CHF1 billion
($1.13 billion) in
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MINTZBERG, LAMPEL, QUINN and GHOSHAL, 2003. The Strategy Process:
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