What are strengths and weaknesses of Nestle?

Answer 1

STRENGTHS

BRAND STRENGTH

: Nestle has some very strong brands like Nescafe, Meggiand Cerelec. These brands arealmost generic to their product categories.

PRODUCT INNOVATION

: The company has beencontinuously introducing new products for its Pakistani patterns on frequent basis, thus expanding its productofferings.

RESEARCH & DEVELOPMENT:

Nestle has aworldwide network of centers in 17 locations on four continents. An international staff of 3500 engaged in thesearch for innovative new products and the renovation of existing ones.

MARKET SHARE:

Another thing is high level of marketshare and that people all over the world trust andrecognizes Nestle as a big brand name.

LOW COST

: they are low cost operators which allow them to not only beat competition but also edging ahead operating excellence, innovation, renovation, product availability and communication are major strengths

WEAKNESSES

MATURE MARKETS:

One major weakness of Nestle is that it is entering into markets that are already mature and can give a tough competition to new entrants.

PLAIN YOGURT:

Nestle Plain Yogurt has proved to be a Nestle weakness because it has been unable to make its market place in USA. But Nestle by analyzing the sensitive areas can overcome its weaknesses.

less consumer research in few areas.

EXPORTS:

The company's exports stood at Rs 2,571 mat the end of 2003 (11% of revenues

a major portion of this comprises of Coffee (around 67% of the exports were that of Nescafe instant to Russia

. This constitutes a big chunk of the total exports to a single location