Strategic Analysis of Nestle 2023 Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the key opportunities and threats facing Nestlé in the dynamic and competitive market, as well as the strengths and weaknesses of its resources and capabilities.
- Understand and assess the key strategic issues and challenges that Nestlé faces in its current and future operations
- Apply various strategic analysis tools and frameworks to evaluate the external and internal environment of Nestlé, a global leader in the food and beverage industry.
1.0 INTRODUCTION
This essay provided a SWOT Analysis of Nestlé 2023 which revealed the strengths and weaknesses of Nestlé Company. This strategic analysis report used a number of strategic tools including PESTLE, Porter's five forces, SWOT, VRIO, and the Value chain to examine the company’s internal and external environment. It also analyzes the company’s strategic positioning in the market and how it can be strengthened since competition is one of the primary challenges facing the food and beverage industry.
Nestlé is a Swiss-based food and beverage multinational corporation first established in 1866 by Henri Nestlé as a milk baby manufacturer before merging with milk chocolate maker Anglo-Swiss Milk Company to form the current corporation known as Nestlé.
According to Forbes Magazine in 2022, Nestlé was crowned the world’s largest food and beverage company in the world maintaining its position in the industry with more than $93 billion in sales. However, despite the fact that it is performing relatively well compared to its top competitors in the market, it is also faced with some critical challenges affecting the entire food and drinks industry such as new eating habits.
For example, as health and obesity issues become more prevalent in the world, Americans have shifted their preferences from soda to bottled water and other healthier preferences. This reflects a growing awareness of the negative effects of sugary drinks on health and well-being.
An internal and external analysis of Nestle shows that the company is under pressure is to respond to the challenges with new innovations, build new capabilities, and remake their brand portfolios either through innovative reformulations of existing products or adding new product categories in order to tackle these new food and beverage trends sweeping the industry.
This analysis answers key questions such as; What are Nestle’s weaknesses? What challenges does Nestle face? What makes Nestlé different from its competitors? What are the strengths of Nestle? What is the marketing strategy of Nestle? What are the entry barriers of Nestle?