Nestle Corporate Strategy - Case Study Example

Comments (1) Cite this document
Summary
The author of the current case study "Nestle Corporate Strategy" highlights that the growth strategy of Nestle is one example of generic competitive strategies discussed by Porter in his book, Competitive Advantage.  At the strategic level, the growth strategy can be considered as a focused strategy…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.6% of users find it useful
Nestle Corporate Strategy
Read TextPreview

Extract of sample "Nestle Corporate Strategy"

Download file to see previous pages Nestle's growth strategy is what porter called a focused differentiation variant. Nestle's strategic business units concentrate on market entry in emerging markets to achieve sustainable growth. They analyze potential host countries; anticipate the shift in the competitive forces and exploits change by creating appropriate strategies. In this way, the company establishes itself and defends its position by capitalizing on its strengths and capabilities. The product based SBUs
The regional organization of Nestle, on the other hand, aims to penetrate the market and establish its presence by promoting several products. They achieve this by maintaining manufacturing facilities in the host country as well as importing other goods produced from another country. Differentiation provides Nestle insulation against the competition through brand loyalty by customers. Through this local strategy, the company earns remarkable returns on capital employed and creates a defensible market position. Strong coordination between the R&D, product development and marketing departments helps local Nestle firms achieve sustainable profitability and increase market share.
Hill mentions in his book that brand management is one of the most important aspects of companies doing international business. Product recognition while entering a new market is considered to be one of the most important strategic strengths of a company. Many researchers have tried to extrapolate this view resulting in the one-brand one-world school of marketing. According to this view, the best strategy for a company is to go into a new product segment or market with an already established brand name. This is considered to be one of the most fundamental principles of international brand management.
However, the success of Nestle and its branding strategy are a contrast to this popular belief. Nestle prefers its brands to be local and people regional, with only the technology being a common global factor. The company has poured billions of dollars into local acquisitions like Ralston Purina pet products in the US. Nestle complete portfolio consists of a staggering 8,500 brands that are organized by geographical status and role. Together these brands create a hierarchy of brands in which each product is associated with at least two bands at different levels in the hierarchy (Kapfere, 2008:413). The geographical criterion allowed three groups of brands to be distinguished - international, regional and local brands. These brands fulfil different functions and roles depending on the customers and represent the principal families of brand architecture.
Nestle's brand strategy is organized into two categories:
The corporate brand - Nestle has formulated a basket of corporate brands under the umbrella of Nestle itself and others often acquired like Blackwell, Friskies and Burton. The corporate brands are there to give the image of a company that is a reliable specialist in some area.
The product ranges like Nescafe and individual product brands like KitKat and Crunch.
To control the branding of the products, Nestle maintains a tight control from the centre on the policy towards the strategic ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Nestle Corporate Strategy Case Study Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.org/business/1526409-nestle-corporate-strategy
(Nestle Corporate Strategy Case Study Example | Topics and Well Written Essays - 1500 Words)
https://studentshare.org/business/1526409-nestle-corporate-strategy.
“Nestle Corporate Strategy Case Study Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/business/1526409-nestle-corporate-strategy.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
he
hettingerbessie added comment 4 months ago
Student rated this paper as
At first, I thought 22 of pages is too much for such a subject. But now I see it could not be done smarter. As the author starts you see the complexity of the issue. I’ve read all at once. Wonderful example

CHECK THESE SAMPLES OF Nestle Corporate Strategy

Corporate Strategy and Strategic Directions of Nestle

...? Strategy: Process, Content, And Context: An International Perspective Contents Contents 2 Section A 4 Corporate Strategy and Strategic Directions of Nestle 4 Outside-In Strategic Approach 4 Porter’s Five Forces Model 4 Analysis based on CAGE Factors 6 Analysis based on Ansoff’s Strategy 7 Section B 8 Comparing and Contrasting Strategic Vision and Leadership Style of Three CEO’s 8 Paul Bulcke 8 Helmut Maucher 9 Peter Brabeck-Letmathe 11 Evolutionary vs. Revolutionary Approach 12 Innovation to Create Competitive Advantage 12 Organisation Framework 12 VRIO Framework 13 Porter’s Value Chain Model 15 References 17 Section A Corporate Strategy and Strategic Directions of Nestle Outside-In Strategic Approach Nestle operates based... on the...
12 Pages(3000 words)Assignment

Nestle

...confectionery such as Kit Kat, Smarties, Yorkie and Aero along with Perrier water, in the UK. Hot Pockets in the US, Baeren Marke in Germany, Mucilon in Brazil, Orion chocolate in Czechoslovakia and Slovakia and Maggi seasoning in Asia are among its well-known brand names. (Johnston) The past two years has seen Nestle’s Maggi ready-mix seasoning targeting Asian ethnic cuisine with mixes for sautees, broths and others. The new Cranberry Raisenets was launched in March last year as an addition to the Nestle Raisinets family. To take care of distribution Nestle has 406 subsidiaries and offices in 104 countries and joint ventures with Coca-Cola, General Mills, L'Oreal and Fonterra, not to...
1 Pages(250 words)Essay

NESTLE

...to participate in SAM's Corporate Sustainability Assessment.  3. 2009 and before. In 2009, Nestle received Gold Class ranking in the SAM Sustainability Yearbook 2009. Nestle was one of two food companies to attain this level. Only the top-scoring 15% of companies in each sector assessed are eligible for inclusion in the Sustainability Yearbook. Identification and Development of key aspects of Entrepreneurship and Global Strategy by Nestle. Today humans live in a global economy in which the time taken for people to move between continents has been significantly reduced and in which Internet and other connections make instant connections possible...
23 Pages(5750 words)Essay

Nestle Global Strategy

..., and the use of local material and majoring on local demand such as make ice cream in Dubai. Nestle focus on increasing profitability by customizing the firm' products so that it provides a good match to tastes and preference in different nation. Customization instead of globalization is the star to Nestle’s strategy in emerging markets. Modes of Entering Exporting What is Exporting? It is processing products in one nation and offering them in an alternate nation. This section alternative permits an organization to make the minimum number of progressions regarding its item, its association, and even its corporate objectives. Host nations normally don't like this practice...
4 Pages(1000 words)Research Paper

Aristotle and Relationship at Work

8 Pages(2000 words)Essay

Nestle

...Nestle Corporate Strategy Ans The Nestle case study is an example of a diversified market strategy, as set out in Ansoff’s product/market grid.This model lists four distinct kinds of growth strategies based upon two dimensions: products and markets, namely: market penetration, market development, product development and diversification. The last growth strategy focuses upon entering new markets with new products and is therefore, the most risky kind of strategy. Ansoff has further distinguished four separate categories for diversification, based upon the premise that the most appropriate growth...
14 Pages(3500 words)Essay

Corporate Strategy

...as operating distribution facilities at locations across the U.S. (PVH Annual Reports, 2008). In regards to the sourcing operations of the firm, according to the Corporate Social Responsibility report, PVH has implemented a ‘Global Human Rights and Social Responsibility Program’ which indicates that the standards for price, quality and logistics are kept on par with the human rights consideration (PVH CSR, 2008). What this means is that the firm self-identifies a global operator and all stakeholders are equally responsible to the firm’s code of conduct. Why PVH is a global firm is important because of the implications is has for the firms strategy. According to the 2008 financial reports more than 30%...
1 Pages(250 words)Essay

Corporate strategy

...Corporate Strategy Table of Contents Introduction 3 Product and Services of Cookson 4 Geographic Scope 7 Critical External Analysis of Cookson Group with Appropriate Models 8 PESTLE Analysis 10 Porter’s Five Forces Analysis 12 Critical Internal Analysis of Cookson Group with Appropriate Models 13 SWOT Analysis 13 Stakeholder Analysis 14 Conclusion 15 References 16 Bibliography 18 Introduction Corporate Strategy is described as a direction by which an organization obtains its predetermined objectives in order to attain business success in the long-run. The creation of corporate strategies comprises the development of scope as well as...
10 Pages(2500 words)Essay

The Marketing Strategy by Nestle

...Case background The aggressive marketing strategy by Nestle led to serious ethical challenge for the company especially for the Infant Formula. The ethical issues arose from the failure that arose from the product. The failure was not directly linked to the product but the society’s perception and activism. The formula relied on mixing with water which created a problem for the women especially those who cannot access clean water. The effect of the contaminated water was death of infants which was blamed on the nestle product leading to the ban of the product in the country and in parts of Europe. Several ethical questions can be raised from the marketing strategy...
2 Pages(500 words)Assignment

Corporate Strategy

...of Dyson Private Ltd. are taken at the top management level. In order to evaluate the strategic options available for the business, the following are the findings based on the P.E.S.T analysis (Political, Economical, Social and technological) (Pamela, 2004). Political: To begin with the political strategies and conditions impacting the long term corporate strategic vision of Dyson Limited Company, either getting a loan for business expansion such as opening a new factory or raising fund has been made difficult for Dyson Co. This is due to the sanctions on large companies to pay progressive interest on loan this sanction has made loan less reliable and hence forced Dyson Co to alter its strategic...
10 Pages(2500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Nestle Corporate Strategy for FREE!

Contact Us