SWOT Analysis in Nestle - Case Study Example

In a recent research carried out by the company, almost 60% of the world population must have consumed or benefited from one of the company's brand3. Most of its brands are billion sellers, and some of the brands are popular than the company itself. Some brands are only available in certain parts of the world. The company is one good corporation promoting diversity, the shareholders, and the employees come from different part of the world. The company has millions of undistributed profit, a portfolio balance sheet in billions of dollars4.

Through Creating Shared Value, Nestl links its operations to long-term value both for its business and for society as a whole, and defines its success in terms of internal financial returns and external social and economic results. Ultimately, creating shared value acknowledges both the work that corporations need to do to reduce negative impacts on society as well as, and more fundamentally, how they can be part of progress on global challenges5. The SWOT Analysis, or sometimes known as the TOWS Matrix, is a strategic planning, competitive and analytic weapon used to evaluate the S trengths, W eaknesses, O pportunities, and T hreats involved in a project or business venture6.

Market analysis of competitors, suppliers, customers and potential opportunities has long been a competitive preparation of the staple firm7. As the struggle for product development and market shar. 1.2 Applying the SWOT MetrixThe SWOT Analysis, or sometimes known as the TOWS Matrix, is a strategic planning, competitive and analytic weapon used to evaluate the S trengths, W eaknesses, O pportunities, and T hreats involved in a project or business venture6. Market analysis of competitors, suppliers, customers and potential opportunities has long been a competitive preparation of the staple firm7.

As the struggle for product development and market shares continue, firms often perform market analysis of their competitor's strength, opportunities, and weaknesses and threats in order to know how to formulate and implement subsequent strategies8. However, in the theory of perfect competition and major strategic theories it is assume firms know their industry and competitors fairly well. Anderton, (2006) postulated that firms engage in competitive analysis to gain a better understanding of their competitors' resources, capabilities, and strategies.

Smith et al. (1992) went further to detail how firms in the airline industry initiate strategies and respond to competitors' strategies. Thomas et al., (1993) went further to illustrate the importance of competitor's analysis.The perception of similarities and differences among competing firms can drastically affect the types of competitive behaviors in which a firm engages9. By doing competitive analysis firms are better placed to do market segmentation, develop their core products and competences and be more opportunistic in their environment.Figure 1., below provide an in-depth analysis of Nestle strengths, weaknesses, opportunities and threats.

WeaknessesOpportunitiesMajor competitors have strong holding some countries and market segment.Some products have not been quite