International Business Strategy: Nestle - Essay Example

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The author states that the future strategy of Nestle is to invest more and in future-oriented business models, moving ahead with the technological advances, making more strategic alliances and partnerships particularly with the locally successful brands while focusing on Operational excellence …
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International Business Strategy: Nestle
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Download file to see previous pages As per Nestle, gaining leadership in the nutrition market is the major element of their corporate strategy. The consumer’s buying motivation in this market comes from the credibility of the product claims based on its nutritional content.
In order to gain and consolidate leadership in the nutrition market, Nestle has created Nestle Nutrition, which is an autonomous Global business unit within the organization. This business unit is fully responsible for its operations as well as profitability. The markets it covers are an infant, healthcare, and performance nutrition segments.
The food and beverage business of nestling was enriched with nutritional value addition through the creation of its corporate wellness unit. The unit is responsible for driving internal and external communications strengthening wellness awareness across all its food and beverage units. The unit is focused on efforts that address not just current but future consumer trends and needs.
Nestlé’s competitive strategies are primarily focused on their international businesses. The businesses are based on foreign direct investment in food and nutrition businesses. Nestle aims to strike a balance between sales in low- risk low growth countries and high risk but high growth countries. The former is mostly in the developed and the latter in the developing world. In choosing the markets for growth, nestle exercises caution and believes in not taking excessive or unjustified risks for growth. This resulting growth might be slow at times but steady nevertheless.
Forming strategic partnerships with large companies worldwide has spelled success for Nestle in the international arena. Its alliance with Coca-cola in ready coffee and teas benefited Nestle immensely because of Coca Cola's bottling system and expertise in prepared beverages.  ...Download file to see next pagesRead More
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