Situation Analysis of Nestle

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4. Situation Analysis This situation analysis starts with a snapshot of the current environment in which Nestle Corporation finds itself by providing a brief SWOT (strengths, weaknesses, opportunities, threats) analysis. After this overview, the analysis probes ever-finer levels of details: industry, competitors, company, and consumers. SWOT Analysis Figure 1 shows the internal and external factors affecting the market opportunities for Nestle Corporation. States briefly, this SWOT analysis highlights the great strides taken by the company since its products first appeared on grocers’ shelves. Figure 1. SWOT Analysis for Nestle Corporation In the Company’s favor internally are its strengths: an experienced and entrepreneurial management and board of directors, unique, high-quality, healthy, and middle-price, customize global products according to consumer preference, good and big workforce, excellent growth in sales revenues, various suppliers related to various high-quality products, and strong focus on research and development capabilities. Favorable external factors (opportunities) include consumers habits have changed more and more demand of coffee; booming out-of-home eating market, distinct name and packaging in its markets, transition to a 'nutrition and well-being' company, and consumers income is high; convenience important to U.S. households. Among unfavorable factors, the main weakness is the large size is hard to manage, increasing instances of product recalls hampering brand equity, relative less sales exposure in emerging markets, the shortage of key employees, too many resources so that influence the quality, large amount of competitors and supply chain having a complex stature, and lack of grinding coffee processing expertise. Threats include premium price may limit access to mass markets; consumers value a strong brand name, competitors

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