SWOT analysis of Nestle / Case study

 Nestle SWOT analysis

Nestle is the biggest food company in the world. It is a Swiss food and drinks processing company, founded in 1866 in Vevey, Switzerland. The company has over 2000 brands ranging from global icons to local favorites and the company presents worldwide in over 186 countries. Nestle’s coffee Nescafe, Maggi, Kit kat are very famous products in the world.

 

              

Strength

1. The company has reported sales to increase by 3.3% in 2021 CHF 87.1B, and in 2020 that was CHF 84.3B.

2. The company’s branding is outstanding, it does individual branding for its different food brands, which helps to keep aware of the customers of the brand.

3. Nestle has a broad product portfolio, it has about 8000 products.

4. Nestle has a major workforce, it has about 2,76,000 employees worldwide.

5. Nestle is home to about 150 locations in United State, which include manufacturing, supply, and R&D.

6. Its research and development organization is the largest in the food and beverage industry, with about 4000 employees at 23 locations worldwide.

 

Weakness

1.  The company has a large number of brands, which makes it challenging to manage. A large number of brands may often result in discord and conflict of interest.

2. Critics of Nestle are its efforts to drain natural water supplies to bottling has wasteful, and that the bottles themselves contribute to the plastic waste.

3. From 2018-to 2020 the company consumed more than 173 million more gallons of water that was permitted to do.

4. In 2017 the company failed in a noodle laboratory test in India, which was leading to a loss of about 80% market share in India.

5. According to a recent report by the UK consumer association claims that 7 out of 15 breakfast cereals with the highest level of sugar, fat, and salt were Nestle products.

 

Opportunities

1. The company has a big opportunity to boost its E-commerce sites and online shopping platforms.

2. Nestle has the opportunity to grow the number of small to large food startups with its popular brands.

3. Nestle is assigned with several food and beverage giants, which is a great opportunity for Nestle.

4. The company is shedding underperforming brands in other product categories and posted its best quarterly sales growth in nearly five years, and stocked up on well-known brands during a pandemic.[1]

 

Threats

1. The production of Nestle is highly dependent on water, finding clean water through cheap sources is a difficult task due to many reasons, including overpopulation, climate change, and increasing demand for food and water.  

2. Many big organizations are offering the same products, and there is big competition in the market.

3. Rising the price of commodities will result in price increases in the future.        

4. Changing in climate will affect the production of coffee.

 

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