The paper "SWOT Analysis for Nestle" is a good example of a management case study. The confectionery industry has faced increased competition given the number of increased players in the industry. In this respect, Nestle has emerged as a competitive industry leader in this market. Arguably, its competitive advantage has enabled it to gain consumer preference against other companies. Due to a robust brand name, the introduction of a new product can be realized. This retrospect paper, therefore, seeks to analyze Nestle's external market while presenting various challenges affecting its presence in the U. S.
market. Introduction With its headquarters in Vevey, Switzerland, Nestle is among the largest food and nutrition company. This is supported by its global operations in over 115 countries, which employs over 280,000 employees. As such, it produces a range of diversified products that range from bottled water, chocolate, dairy of health and sports nutrition and baby food products. Renowned products such as Nespresso, Nescafe, Movenpick among others, are just a few of its global products. By 2009, ice cream, and milk products represented one-fifth of the company’ s total turnover (Nestle Annual Report, 2013).
According to the company’ s reports, its operation offices and manufacturing sites are present in all its 115 countries of operation, with a total of 449 factories in over 83 countries. Through various partnerships, the company has successfully engaged in a number of business enterprises to develop boards in creating a favorable image. In terms of its management structure, the company is governed by a board of directors while its executive board members are tasked with overseeing the company’ s daily management. The food industry is highly delicate, therefore; it values research and development that it perceives as an important competitive advantage for the company.
With over 29 research, development and technologies worldwide, it holds one of the largest R& D networks in any food company. Presently, the company’ s goal is focused on nutrition, health and wellness trusted by all its stakeholders. Despite its major success in the food industry, it experiences a number of challenges that have seen it experience various controversies in recent years. In this respect, therefore, it needs to enhance its message translation and internal coordination in various constructs.
Contrariwise, Nestle has struggled in maintaining its enterprise approach to CSR practices, where numerous controversies surround its operation; including but not limited to Nestlé ’ s bottled water ad, IUF-led Nespressure campaigns, and deforestation linked to Nestle’ s sourcing of palm oil. The U. S. Market Statistics showcases that the market share of the leading confectionery market, where Nestle holds approximately 5.2 percent in sales as of 2014. Mars and the Hershey Company were key competitors in the market (Statista, 2014). Evidently, the confectionery industry is robust with an average consumer spending of $ 102 on confectionery products as of 2013.
The country’ s confectionery has grown significantly over the past years at a steady rate of 2.5 %, translating to about $ 33.6 billion in sales. In this respect, seasons are an important driving force for the company’ s sales, where 54 % of total annual sales are made of candy and gum purchases, happening at the peak seasonal selling weeks. Chocolates represent over 60 % of the confectionery sales in the U. S (National Confectioners Association, 2015).
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