The aims of this assignment was to analyze the strategic choice of Nestle company, to give out the alternative strategic choice which they can pursue and lastly to provide recommendation of strategic choice and how the Nestle can implement the strategies.
In the introduction the report tried to give definition of Nestle company and background, this Nestle Is the largest food and nutrition company in the world, Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri Nestlé.
Nestle’s objectives are to be recognized as the world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry.
These are some of brands of Nestle; Baby foods (Nestlé Cerelac, NAN)
· Breakfast cereals (Nestlé Cereals)
· Dairy products (Milkpak, NIDO, Nespray, Nestlé Yogurts, Everyday)
· Ice-creams (Movenpick, Dreyer’s)
· Chocolate confectionary (Kit Kat, Smarties, Toffo)
· Beverages (Nescafe, Milo, Nestlé juices)
· Food service (Nestlé Jumbo Bottle) etc.
The assignment used Michael Porter generic choice, BCG Matrix and Ansoff Matrix so as to support its points.
Not only that but also there are SWOT analysis of Nestle such as; in strength the company has Large Portfolio, Economies of Scale etc. weakness side are Nestle has Large Workforce Difficult to Manage, Subsidiaries Difficult to Manage etc. in opportunity Nestle has Partnerships & Farmer Support , Emerging Markets etc. And in threats Nestle has one brand fails New Diet Trends, etc.
According to analysis of strategic choice Nestle Company, the company uses the cost leadership and Diversification Strategy which they used in their operation of selling their products, that’s why they have a big competitive advantages compare to others.
Some of alternative strategic choices are Strategic Alternatives Differentiation strategy, Focus strategy, Focused Differentiation Strategy etc.
Lastly the report tried to provide recommendation and conclusion some are; Nestle must state in writing that it will make required changes to bring its Baby Food, Marketing policy and practice into line with national Code and Resolutions. And in conclusion; its packaging is good; we can easily find Nestle from any retailer shop.