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Nestle SWOT Analysis
DR. MUMTAZ M. KHAN
Strategy Analysis
Internal Strengths Build, enhance
Weaknesses Resolve, reduce
External Opportunities Exploit, expand
Threats Avoid, minimize
Strategic Analysis
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
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.
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
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.
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.

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Nestle swot analysis by Mumtaz Muhammad Khan

  • 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.