Nestle’s sustainable growth in mature market
The company establishment
Nestle was first founded by Henri Neslte in the 1860s by developing and producing food products for babies who could not adapt mother’s milk. Following the success in baby food products, Henri incorporated with an Anglo-Swiss condensed milk company to develop dairy products, especially for government supply in World War I. High sensitive and quick responding to the demand of consumer, Nestle continued to create and develop new product mix to canned food, beverage, pet care products, to maximize its scope of business in food segment.
Nestle had been incurring high success during its operation in food industry, proved ...view middle of the document...
As a result, the second sector is established with the vision is “to create future, move faster and go beyond what consumers tell us” (Bauer 2009). The new sector applies science and technology into innovating and reinnovating consumer=oriented products.
Brabeck’s growing strategies are aiming to position Nestle as the market leader in food industry, or at least to rank stably its product categories as second strong product power. Approaches to the mission are now strategically deploying by series of initiatives to increase internal and external operation efficiency. Nestle is currently widely known as the most success company manufacturing and distributing nutritional products for any aspect of health care. That means, Nestle already reaches the first part of its vision, however, Brabeck never stop thinking of giving Nestle to the most possibly highest position as he can and strikes strategies to advance Nestle’s competencies over its major competitors
Nestle in a mature market
Industry value chain analysis
Targeted consumers: Nestle focuses on developing and manufacturing nutritious food and health care products to all types of retail consumers from premature babies to maturity and aging group. Another special profitable market for Nestle is to develop consuming products for pet care In order to Nestle’s products deliver to end-users, they are distributed by large buyers such as wholesalers, supermarkets, schools, businesses. Even they are retail or larger buyers; they of course have power over their choices and expectation of products. They are holding negotiating power on sales contracts at prices and quality they expect to. Nestle is an nutrition, health and wellness business, and it declare consumer orientation is main business development, it thus must notice to consumer’s wants and needs to offer them satisfactory products and acceptable prices.
Intensive competition: Although already being the world’s largest food and beverage company, other food companies either globally or regionally achieve some objectives of their expansion strategies during years. Consequently, Nestle’s widespread position is not likely to be stable for a long-run. The three main competitors of Nestle are defined as Kraft, Masterfoods, and Unilever. Additionally, Nestle also must be aware of slow and consistent of local rivals. Both Nestle and its competitors distribute similar products to the same groups of consumers in same markets. Obviously, demand for food is essential and mature; however, with the significant increase in quality of life, people are searching for high qualitative nutritious products that satisfy their demand for health care. Thus, add-ins product is an important strategy for Nestle to remain its world largest position and market share.
Key suppliers: strong supply chain is one of the most important competitive advantages to every business. Nestle has a wide supply chain operating over the world, in countries it has representing...