Nestle’ Case Study
Essay title: Nestle’ Case Study
Background
The dairy products at Nestlé are a big driving force for the growth of the company’s sales. With the health kick of the many individuals around the world, it pushes the innovator and renovators of Nestlé to reach new height in finding better and healthier products for their consumers. More recent, dairy division became a big potion of the company’s earnings, so it would be best for Nestlé to focus a big portion of their core competences and resources on the fast growing dairy division. Which leads us into the most recent yogurt produced by Nestlé’s, which is the LC1.
I. OPPORTUNITY AND THREAT ANALYSIS
Comparing Nestlé with the environment concerning which it would determine the opportunity and threats in the future of the company by Likert Ratings Scale
Figure 1 Pest Analysis
I. Economic Factor
Weight
Comments
1.Economic Growth
Expected increasing in economic growth. However, it is not direct effect with the food product especially LC1yogurt.
2.Inflation
Increasing trend due to increasing in economic growth. It didn’t apply asNestlés major problem
3.Interest Rate
4.Oil Price
Increasing in oil price would be related on the logistic cost.
5.Disposable Income
As economic grows, disposable income are expected to increase which is droved the expense on functional food products.
Total
II. Political Factor
Weight
Comments
1.Government Regulation
Deregulation to create free market force to open for tense competition.
2.Gevernment / Political Stability
Political Stability in EU market would be support FDI confidence.
3.Attitude Toward Private Ownership
The feeling of acceptable goods is directly affected the distribution channel for product.
Total
III. Social Factor
Weight
Comments
1.Consumer expectation
Increasing in Competitors, offerings map closely to customer expectations and interests. Company have to create and deliver value propositions that serve consumer needs
2.Lifestyle Changes
Trend of health conscious became the one of value in Nestlé LC1 product
3.Population Structure
Changing in age structure, which is related to sized of potential customer, bring the develop on taste and value added
Total
IV. Technology Factor
Weight
Comments
1.Technology in infrastructure
Higher technology infrastructure can help company to produce low cost products and ahead with low operating costs.
2.Technological Advancement
Fast technology is another opportunity of company to launch an innovative product
Total
Figure 2 Environment Factor Analysis Summaries (EFAS)
Factor
Weight
I. Economic Factor
II. Political Factor
III. Social Factor
IV. Technological Factor
Total
INDUSTRY ANALYSIS
Figure 3 Industry Attractiveness Analyses
I. Rivalry among Industry
Weight
R x W
Comment
1. Industry Growth
Industry growth is expected in increasing because of health conscious.
2. Number of Competitors
Increasing in variety of functional food products, new ingredient added and innovated, forces Nestlé to launch product faster.
3. Product Differentiation
Each of companies tries to differentiate its product. Nestlé has to put more effort to sustain its uniqueness.
4. Diversity of Competitor
There are variety of taste and value added in functional product which is one of companys innovation