In this report, desktop research is the main research method to analyze available data. Many literature data and digital information resources are provided on network and library. To ensure creditability, I collect the information from official websites and authority forums. During the writing, foreign websites blocked is the major difficulty for me to find more data and information.
Nestle is the world’s biggest food manufacturer, and it’s investment covers almost every food and beverage category. It has a wide range of products, and the most popular products are coffee, chocolates and baby foods. Nestle is a large scale company with strong funding. According to a recently Nestle official report, during nearly 150 years, Nestle has set up 465 factories in more than 150 countries and employed at least 333,000 workers. In 2013, the annual turnover of Nestle amounted to CHF 92 billion (2014).
There are many standards to measure success. A success criteria suitable for a company does not apply for all the companies. In my opinion, the main standard of success is profit, because the company's fundamental purpose is profit. Of course, there are many other factors to run a successful business, such as market strategy, innovation and focusing on the customers’ needs.
A Mind-map visually describes the process I analyzed about Nestle’s success and failure. In this way I can organize my thoughts more efficiently.
The major benefit of using PEST and SWOT analysis is that we can understand the success and failure of the company by analyzing the internal and external environment.
PEST & SWOT
1. Stable political environment
2. Economic policy
3. Strengthen food safety management and strictly control market access
1. Economic development and increase of national consumption capacity and living standards
2. Macroeconomic policy
1. Ingrained tea culture
2. Consumer groups expand continuously
3. Consumer psychology
4. Change in lifestyle
1. Internet sales
2. Online Survey or Internet Survey
3. The bionic extraction technology and bring impact to enterprises
1. Large scale company
2. A large market share
3. Strong capability in innovation and new technology development
4. Module Marketing Strategy
5. Brand publicity
6. Effective operation of funds
1. The quality problems of products
2. Incorrect crisis management
1. Explore new market segments
2. Huge potential consumption
1. Many competitors
2. Facing strong competitive pressure
The main reason for Nestlé’s success is that it focus on demands of market via the correct market orientation and insists continuous research, development and innovation.
Nestle did long-term and detailed studies to the market; therefore, it achieved globalization think and localization operation. This makes products satisfy the local market, and provides wide variety products to customers. (Wang, 2008) In this way, Nestle gains a large market share. Nestlé’s data displayed that it has 75% market share of Chinese instant coffee market (Nestle, 2012). Nestle also has 34 high standard of technical R&D centers in the globe, and these offer a strong capability in innovation and technology. It enables Nestle to innovate products to meet the customer