Essay About High Market Share And Wellness Company

Nestlé Strategic Management – Essay – Ng Tzeway
Search
Essays
Sign up
Sign in
Contact us
Tweet
Index
/History Other
Nestlé Strategic Management
Part 3: Strategic ManagementNestlé is the main Nutrition, Health and Wellness Company in the world with an unmatched combination of more than 2,000 global and local brands headquartered in Vevey, Vaud, Switzerland (Nestle, n.d.). According to Nestle, it provides health solutions and science-based nutrition for all stages of life to help customers concern more about themselves and their families. Besides that, it is the largest revenue generating food company in the world and ranked #72 on the Fortune Global 500 in 2014 (DuBois, 2011; Lausanne & Vevey, 2009; Fortune Global 500, 2014).Five primary product lines of Nestle are water, milk products and ice cream, powdered and liquid beverages, nutrition and health science, and also prepared dishes and cooking aids. Nestlé waters make consumers’ stay hydrated with its global brand. In Nestlé’s global BCG Matrix in 2015 (Appendix 1), mineral water has high growth rate and high market share which place in a star. This means that the company is able to generate large cash and consume large cash (Arline, 2015). This product line has a clearly visible market and requires large amounts of funding to compete with competitors (Martin, 2015). Ashfaq et al (n.d) point out that the company intends to use market development strategy due to its strong brand image. For instance, the company intends to enter the market where specialised to medical skin treatment (Nestle Annual Review, 2015).This strategy is suitable and aligns with the situation because mineral water is in the best situation which just needs to develop new market so as to maintain and increase market share.Moreover, Nestlé’s well-known dairy brands symbolize a strong foundation for the company’s continued growth all over the world. Milk products and ice cream place in cash cow where market growth rate is low but market share is high. This means that the investment amount required maintaining their business is lower than the revenues they are able to generate (Martin, 2015). According to Martin (2015), the company will attempt to develop this product with as little investment as possible as this product is in a developed market and the company holding it to continue to make revenues. Ashfaq et al (n.d) point out that the company intends to use market penetration strategy to gain market share. The cash cow gains the best advantage by making maximum revenue due to its high market share as the market is not growing (Nyandat, 2013). Therefore, this strategy is suitable and coordinates with the purpose of minimising investment but gives more financial returns and includes retention of the market share at the same time (Nyandat, 2013). So, more resources can be investing or channelling to other product to maximise profit.Furthermore, Nestlé exclusively positioned with two trustworthy brands which are Nescafé and Nespresso to provide consumers with a complete range of products, systems and services. Powdered and liquid beverages segment are place in question mark where growth rate is high but market share is low (Arline, 2015). This means that this kind of product consumes more than it generates.  According to Lausanne (2001), the company uses market penetration strategy and market development strategy to turn this question mark product into high market share products. In fact, companies are advised to invest in question mark if the product has potential or growth (Arline, 2015), but the position that this powdered and liquid beverages plot in the BCG Matrix seems to be low potential to grow and nearly fall down to dog, therefore it will be better to sell it before the investment completely wasted and result in loss.

Continue for 3 more pages »
Read full document
Download as (for upgraded members)
Citation Generator
MLA 7
CHICAGO
(2017, 03). Nestlé Strategic Management. EssaysForStudent.com. Retrieved 03, 2017, from
“Nestlé Strategic Management” EssaysForStudent.com. 03 2017. 2017. 03 2017 < "Nestlé Strategic Management." EssaysForStudent.com. EssaysForStudent.com, 03 2017. Web. 03 2017. < "Nestlé Strategic Management." EssaysForStudent.com. 03, 2017. Accessed 03, 2017. Essay Preview By: Ng Tzeway Submitted: March 26, 2017 Essay Length: 919 Words / 4 Pages Paper type: Essay Views: 661 Report this essay Tweet Related Essays Strategic Management Summary Strategic management is the ongoing process used by companies to form a vision, analyse their external and their internal environment, and select one or 388 Words  |  2 Pages By Comparison with the Other Factors, Evaluate How Important Stakeholders Are in Strategic Management. The first intention of this paper is to give a clear understanding of key terms used throughout, helping illustrate their meanings and importance. Strategy: Johnson 2,628 Words  |  11 Pages Business Policy and Strategic Management UNIVERSITY OF WASHINGTON, BOTHELL BBUS 470: Business Policy and Strategic Management Autumn 2006 Dr. Kevin Laverty Kristen Spangler, MBA Email: [email protected] Office: UWB2-325 Phone: 425.352.5338 2,247 Words  |  9 Pages Tm 583 Strategic Management of Technology TM583 Strategic Management of Technology Case Study Assignments As noted in the syllabus, there are two written case study assignments for this course. All case 486 Words  |  2 Pages Similar Topics Strategic Management Tool Public Management Strategic Management Policy Case Study Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter