Nestle SWOT Analysis

Table: SWOT Analysis Template

	Strengths	Weaknesses
	1. Widened geographic presence leading to diversified sources of revenue	1. Lack of internal quality control leading to issues
	2. Research and Development capabilities	2. Cases of food recalls in countries
	3. Diverse portfolio	3. Misleading nutritional messages in marketing campaigns causing scandals
	4. Unique brand reputation	4. Banning of products Maggi instant noodles in Asian countries, especially India, due to chemicals.
	5. Extensive consumer engagement	5. Cases of death and sickness of Chinese infants after consuming unsafe formulae (Nestle, 2018)
	6. Sustainability efforts directed towards maintaining the natural environment (Varma & Ravi, 2017).

*Opportunities*	*SO Strategies*	*WO Strategies*
1. Healthier foods demand	1. Introducing plant-based, non-dairy food items into the already diverse product portfolio	1. Providing clean and safe production and packaging conditions and procedures (Quality Controls)
2. Reliable research and development	2. Developing new products that meet conscious clients’ health needs through R&D	2. Providing actual dietary information on every product item
3. Widened channels of sale	3. Pushing diverse products into the newly established markets	3. Educating consumers on the new products and relating the information to consumers’ needs (Haque, 2021).
4. New partnerships	4. Engaging consumers during new product development to ascertain the gaps that the company can fill
5. New product (KitKat) launch (Haque, Faizul, 2021).	5. Marketing the new KitKat with less sugar to clients as one of the healthy products
6. Call to sustain the natural environment.	6. Developing sustainable and recyclable methods of packaging products
Threats	ST Strategies	WT Strategies
1. Shift towards healthy diets	1. Use the current R&D to develop matching products	1. Reducing the chemicals in food products to avoid harming consumers
2. Changing food trends	2. Using consumer engagement to identify and understand the new trends	2. Developing quality controls to avoid contamination of products
3. Increasing prices of raw materials	3. Producing large quantities of products and selling using the wide distribution channels to maximize economies of scale and reduce costs of production	3. Seeking natural methods of production using plants to reduce costs of production
4. Contamination of products (Nestle, 2018).

Strategies to Seize Opportunities

Nestle values its Nutrition, Health, and Wellness strategy seeking to produce healthy and tasty products (Nestle, 2018). The current trends are shifting towards more healthy food items. The term healthy tends to be denoted by less sugar, less salt, and less fat. This shift is motivated by the high prevalence of lifestyle conditions such as Diabetes, Hypertension, and kidney problems, among others. The current situation provides an opportunity for Nestle to create new products that match the current consumer needs (Varma & Ravi, 2017). Using its current Research and Development resources, the company can create new products to fill the current industry gaps. Through purposeful innovation, Nestle intends to create plant-based products that offer nutritious value to consumers.

In developing the new health sensitive products, the company will be able to sustain the environment and reduce production costs. Nestle already has a reputation for undertaking efforts that preserve the natural environment. Thus, the organization will also create recyclable packaging that reduces the environmental negative impacts. These alternative packaging will promote Nestle’s ability to impress the market, improving its reputation. In addition, Nestle’s efforts to incorporate plant and non-dairy ingredients in its products should reduce the costs of production (Nestle, 2018). The cost of raw materials has been on the rise due to economic changes affecting the company’s profitability. Thus, introducing new products that use natural ingredients should solve this problem. In addition, the production of products in large quantities is important in enabling the maximization of economies of scale. The step should enable Nestle to improve its profitability through cost management.

Furthermore, the company’s past scandals in relation to banned products such as Maggi Instant Noodles in India raised concerns regarding the chemicals in these food items. Such cases should motivate Nestle to reduce the amounts of chemicals in food products to avoid harming consumers’ health (Markovic, 2018). In addition, the past scandals increase consumer criticism of the company’s products. To avoid such cases in the future, Nestle should provide clear dietary information on all products to ensure that clients are aware of the ingredients.

Most importantly, Nestle’s quality controls have been insufficient or inexistent in the past. This has led to numerous product recalls and subsequent banning. In the worst-case scenario, infants have taken ill or died after consuming Nestle’s formula (Markovic, 2018). Such cases were witnessed in China, citing product contamination. Thus, the company has the opportunity to establish clear quality control mechanisms alongside new product development. To enlarge its product portfolio, the company should engage the consumers in the process. This should facilitate understanding of the consumers’ needs and develop products that match these needs. Citing products such as the new KitKat that has less sugar, Nestle should use its current distribution channels to inform the target market about the new products (Haque, Faizul, 2021). The current opportunities that Nestle could explore can spur growth, profitability, a wider product portfolio and global presence, as well as a larger market share.

References

Haque, Faizul. (2021). SWOT Analysis of Nestle. The Strategy Watch.

Markovic, M. (2018). Nestlé’s Strategic Analysis Report. Retrieved from https://www.researchgate.net/publication/328968077_Nestle%27s_Strategic_Analysis_Report

Nestle. (2018). Annual Review: Enhancing quality of life and contributing to a healthier future.

Varma, G. R., & Ravi, J. (2017). Strategic Analysis on FMCG Goods: A Case Study on Nestle. International Journal of Research in Management Studies, 2(4), 12-22.

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Question

Strength, Weaknesses, Opportunities and Threats (SWOT) of Nestle

1-Use the attached template develop a Strength, Weaknesses, Opportunities and Threats (SWOT) of Nestle.

Nestle SWOT Analysis

Identify 3-5 strength of Nestle company
Identify 3-5 weaknesses of Nestle company
Identify 3-5 opportunities of Nestle company, that is explain what the company can do to expand
Identify 3-5 threats of Nestle company, for example explain how they deal with their competitors

The above points can be in a sentence {listing form}. Please cite on the template where necessary. The instruction says 3-5 for each point but if you can get 3, that’s fine.

2- Came up with strategies to solve the above identified points. That is, came up with something the company can implement to take care of the strength, weakness and the threats. Explain the points

See Table 1 for the SWOT analysis template.

Table 1

SWOT Analysis Template

	Strengths	Weaknesses
	1.	1.
	2.	2.
	3.	3.
	4.	4.
	5.	5.
	6.	6.
	7.	7.
	8.	8.
	9.	9.
	10.	10.

Opportunities	SO Strategies	WO Strategies
1.	1.	1.
2.	2.	2.
3.	3.	3.
4.	4.
5.
6.
7.

Threats	ST Strategies	WT Strategies
1.	1.	1.
2.	2.	2.
3.	3.	3.
4.
5.
6.
7.
8.

Note: enter where you obtained this information in APA format.

Nestle SWOT Analysis