Nestle: Sustaining Growth in Mature Markets
Assignment # 1 – Nestle: Sustaining Growth in Mature Markets
Describe each of the following elements in the Current Competitive Landscape: Globalization, Technology, Knowledge, Strategic Flexibility, Quality, and Profit Pool.
The Nestlé Food Company has been part of the international community since it was first founded in 1866 marketing its products in 130 countries across the world. “More than the previous 130 years, Nestlé had acquired insightful knowledge of markets all over the world, and enjoyed great success in adapting its products to local tastes” (Hitt, Ireland, & Hoskisson, 2009). Doing this Nestlé has retained the reputation as a champion company who “thinks globally but acts locally” (Hitt, Ireland, & Hoskisson, 2009). Not only has Nestlé succeeded in the food industry, they have also taken strong leads to impact nutrition, health, and wellness. The Nestlé Company continues to stay competitive within the global market while continually working with a failing economy. Nestle international profile shared with existence of other businesses provides good resilience in a decline. The development of the product mix towards Nutrition and Health should have increased the group's defensive profile. This strategy is based on a price positioning that should remain competitive.” The knowledge that Brabeck introduced in 1997 brought many new strategies to Nestlé the first was to force the business to become more efficient by cutting back on their investment budgets by maximizing existing assets, maximizing capacity utilization and maximizing distribution logistics. Releasing his efficiency programs MH97 and Target 2004+ Braback was able to generate savings to the Nestlé Food Company of approximately 7 billion dollars creating the foundation to expand in strong investments in internal growth (Hitt, Ireland, & Hoskisson, 2009).
Nestlé is maintaining a company with a strong advantage in the marketing,...