Nestle SWOT Analysis , Strengths | Weaknesses | Opportunities |Threats | Limitations of SWOT Analysis

1. Nestle SWOT Analysis
DR. MUMTAZ M. KHAN

2. Strategy Analysis
Internal Strengths Build, enhance
Weaknesses Resolve, reduce
External Opportunities Exploit, expand
Threats Avoid, minimize
Strategic Analysis

3. Strengths
 Reliable suppliers
 Highly skilled workforce through successful training and learning programs.
 Superb Performance in New Markets
 Successful track record of developing new products – product innovation.
 Successful track record of integrating complimentary firms through mergers &
acquisition.
 Highly successful at Go To Market strategies for its products.
 Strong Brand Portfolio
 Strong Free Cash Flow

4. Weaknesses
 Need more investment in new technologies.
 Financial planning needs more efficiency
 High attrition rate in work force
 The product positioning and unique selling proposition
 Days inventory is high
 Limited success outside core business
 Not very good at product demand forecasting leading to higher rate of missed
opportunities.

5. Opportunities
 Economic uptick and increase in customer spending on food items
 Organization’s core competencies can be a success in similar other products field.
 New environmental policies
 Opening up of new markets
 Decreasing cost of transportation
 The new taxation policy
 The new technology with Standards
 Post Covid-19 period

6. Threats
 Intense competition
 Changing consumer buying behavior from online
 Rising raw material price
 Liability laws in different countries are different and Nestle may be exposed to various
liability claims given change in policies in those markets.
 The company can face lawsuits in various markets
 Rising pay level
 The seasonal demand of the highly profitable products
 The currency fluctuations given the volatile political climate.

7. Limitations of SWOT Analysis
 Certain capabilities or factors of an organization can be both a strength and weakness at the
same time
 SWOT does not show how to achieve a competitive advantage, so it must not be an end in
itself.
 The matrix is only a starting point for a discussion on how proposed strategies could be
implemented
 SWOT is a static assessment
 SWOT analysis may lead the firm to overemphasize a single internal or external factor in
formulating strategies..
 SWOT focus on individual importance of factor rather than how they are collectively
important and impact the business holistically.