The paper “ Nestle Nutritional Profiling System, Lessons Learned and Success of Nestle, Difficulties of Adopting Nestle Success Factor by Other Companies” is a forceful example of a case study on the management. The success of any organization largely depends on its innovative initiatives, which also give it a competitive advantage in the business environment. The food and beverage industry is currently facing a number of challenges that require significant innovation to overcome (The Economist, 2012). The main challenge is the rapidly rising obesity rate across the world. Fast foods are very profitable, but the players in the industry are concerned with making people fatter.
Therefore, the obesity concerns and the need to produce healthy food are making food firms to invest a lot of money to come with innovative ways of solving the problems. Nutritional profiling is the new technology the industry players are using to solve the obesity and health issues. Paper looks at the innovation in the food and drink industry by specifically Nestle Nutritional Profiling System (NNPS). It looks at the Nestle displays innovation, innovative lessons, and the impacts of the NNSP.
In addition, it analyzes the adoption of innovation by other players in the industry. Nestle was found in 1866 by Henri Nestle and it is rated as the largest company in the food and beverage industry in the world (Nestle, 2015). The company operates in almost all nations worldwide and it employs about 250,000 employees in 70 countries. The firm offers a lot of products that include coffee, chocolate, frozen products, cereals, and many other food products. Currently, the company is expanding its products to even include pet foods and cosmetics.
The success of Nestles is associated with its effective product innovations and renovations, which have made it dominate the industry. Lately, the company has come up with a new and unique innovation known as the Nestle Nutritional Profiling System, which is the focus of this paper. Nestle uses open innovation (OI) where it utilizes both internal resources and external assets to enhance its technology, which it uses to produce products that satisfy consumer needs. Nestle creates its innovation through partnership. In addition, it also uses new business models like the micro-MBA model to train its workers to be more creative.
The company has employed about 5,000 employees in its 24 research and development (R& D) centers, and additional 250 application groups that have made it the most creative firm in the food and beverage industry (Innovisio, 2013). Therefore, the Nestle innovation process involves the application of OI by utilizing modern technologies and expertise of various researchers across the world to produce quality products that give it a competitive advantage in the market. Nestle Nutritional Profiling System (NNPS)Nestle launched its new technology, NNPS, on 7th February 2016 in order to help it reduce salt, sugar, and fat level in its food products.
The innovation is also aimed at enhancing other healthy nutrients in its products (Drewnowski and Fulgoni, 2008). NNPS has the potential of dividing food into 32 categories and gives its suitable nutrient targets. In addition, it limits nutrient level each category to be in line with the international and national dietary standards and guidelines. NNPS has the ability to reduce salt by 22% and sugar by 31% (Jessri, Nishi and L’ Abbé , 2015).
Besides, it can significantly reduce saturated fatty acids in Nestle food products (Crawford, 2016). Consequently, innovation is giving Nestle a competitive advantage in the food and beverage industry because it produces foods that meet the current demand.