About Porter Five Force & SWOT Analysis Description, effect of Nestle Company.

2. MD. MUWAS MIA
ID: 151-11-4362

3. PRESENTATION GOING ON CASE STUDY ANALYSIS-
NESTLE: GLOBAL STRATEGY

4. AT A GLANCE
• Nestle is a Swiss Company founded in 1866 by Henri Nestle
• World biggest food and beverage company
• 2000+ brands worldwide
• Around 3,28,000 employees.
• Sell product 191 country
• 418 factories in 86 country
• One of the main shareholders of L'Oreal, the world's largest cosmetics company.

5. VISION & MISSION
Vision
Nestle aim to meet various needs of the consumer everyday.
[
Mission
Good food, Good life Nestle strive to being consumers food that are safe, high
quality and provide optimal nutrient.
Values
Acting legally and honestly

6. PRODUCTS
• Baby Food
• Bottled Water & Beverage
• Chocolate
• Dairy Products
• Coffee
• Ice Cream
• Prepared Food
• Cosmetic
• Healthcare Nutrition

7. PORTER’S FIVE FORCE MODEL
Risk of entry by
potential competitor
Bargaining power of
suppliers
Bargaining power of
buyers
Threats of substitutes
Intensity of
rivalry among
established Firm

8. PORTER’S FIVE FORCE MODEL
Threat of New Entrants
Nestlé has been around for over a century. New entrants should capture a portion
of Nestlé's Market to survive. Its long history, product quality, consumer
satisfaction allowed Nestlé to obtain a considerable share of the market.

9. PORTER’S FIVE FORCE MODEL
Bargaining Power of Supplier
Creates and maintains positive relationship with its suppliers. Nestlé holds large
purchasing power also more bargaining power. The company prefers Long-term
relationship with its suppliers which ensures quality of products.

10. PORTER’S FIVE FORCE MODEL
Bargaining Power of Buyers
Nestlé’s understands the power of customers and has taken specific steps to meet
their needs. Society is more health conscious-Nestlé is incorporating health and
wellness in its products.

11. PORTER’S FIVE FORCE MODEL
Threat of Substitute Products
Nestlé is surrounded by the threat of substitute goods. Similar products that
compete directly with Nestlé. Competition is high. Responsibility to improve its
products. Nestlé focused on health and wellness in order for its products to stay
competitive.

12. PORTER’S FIVE FORCE MODEL
Intensity of Rivalry among Competitor
Nestlé is a powerhouse in the Food Industry. These companies spend hundreds of
millions to appear more desirable. Companies continue to strive in order to stay
competitive but consumer will continue to enjoy ever- improving products.

13. SWOT ANALYSIS (STRENGTH)
• Very long history over 150 years
• Operates in 194 countries
• Nutrition sector with over 3500 scientists in company R&D network.
• Offering 2000+ brands worldwide
• People trust on products due to proper healthy and safety measures.
• Company always adapts the new technology
• Strong distribute network

14. SWOT ANALYSIS (WEAKNESS)
• Less consumer research in few areas.
• Target customer high and upper middle class people so lower class can not afford
to buy nestle product
• Main weakness of Nestle products that there are different companies which
provide substitutes of Nestle products but the name of Nestle products is always
stand in the last because of low advertising and marketing

15. SWOT ANALYSIS (OPPORTUNITY)
• Establishing new joint venture
• Nestle have opportunity to expand their product line like tea
• Increasing number of working youth

16. SWOT ANALYSIS (THREATS)
• Many competitor
• Rising raw material prices for some period
• Market segment growth could attract new entrants.
• Existing companies are increasing their product line.

17. BOSTON CONSULTING GROUP (BCG) MATRIX
Star (Rapid growth and expansion)
Nestle Beverage
Cash cows (Ability to find out Star or question Mark)
Baby food products
Question Mark (Invest heavily to increase market share)
Breakfast cereal
Dogs (Low market share & growth)
Pharmaceutical Products

18. SOCIAL RESPONSIBILITY
• Invest on three areas- Nutrition, Water & Rural development.
• Nestle education programs have reached 9 million people.
• Planted 7,50,000 trees in Malaysia.
• Reducing greenhouse gas.

19. RURAL DEVELOPMENT
• Water Education Programs in India, Proper use of water
• Coffee training programs in Philippines
• Joint venture for driver training in Pakistan
• Ice cream on wheels in South Africa.