Threat of new entrant, Threat of substitute goods, Power of suppliers,

1. Poter's five forces
for Nestle

2. Threat of New Entrants
 New entrants would always be a threat for the company.
 Nestle has a strong name in the market.
 Nestle has been the leader of market so it is big challenge
for the new entrants.
 Many companies entered in food industry but few are
survive.
 Threat of New Entrants is low.

3. Threat of Substitute Goods
 High competition is always seriously threat.
 Nestle deal in those product which very common and daily use.
 Initiatives would make it easier for Nestle to go beyond the
substitutes.
 Threat of substitute product is high.

4. Bargaining power of suppliers
Dairy and agricultural raw materials.
The company maintains high
standards in seeking quality
suppliers.
Nestle is known for good relationship
between the company and its
suppliers.

5. Bargaining power of customers
The customers in the food processing
industry have a lot of bargaining power.
Nestle differentiate itself from other
companies product on its good quality.
Society has in progress of becoming more
health conscious.

6. Competitive Rivalry within the Industry
Nestle has a very strong position in the food processing industry
DANONE and Kraft Foods are the main rivals of Nestle.
Nestle has always led in the industry because of its top quality
products and constant innovations