SWOT Analysis of Nestle Australia Ltd Essay

Executive SummaryThis SWOT (strength, weakness, probability, threat) make known examines those four heavenss of a tonic Nestle crossroad in the merchandise. This harvest has a naked and fantastic mixture that has never been in the local market shelves ever before. Although this report is mainly about the rising proceeds, it also looks at the history of Nestle and goes into depth about the SWOT of the company. Introduction and background This argona provides a brief overview of the companys productions that has already been in the market, its current market, and relevant history of the breakfast products of Nestle. SWOT table A peerless foliate table that state the strengths, weaknesses, opportunities and threats of this product. Findings A one page explanation of the points listed in the SWOT table, and ranking it from the most important to the least. Recommendations A two page verbal description of the new product, and justification of the choice made by choosing this product using at least one of the four analysis points.IntroductionNestle is the worlds leading nutriment company. Nestle was appoint in 1866 by Henri Nestle and became one of the biggest food and crapulence company. Nestle started at providing babies food with exalted quality. However, in recent years, Nestle has centre on nutrition, health and wellbeing. Since establishment until now, Nestle has been through 6 stages1866 1918 intellectual nourishment products for babies and Powder milk1918 1944 Choco ripe, Coffee and Fresh milk1944 1975 Fast food Maggi1975 1981 Fast food products1981 1996 Yogurt and Butter1966 Present Ice cream.Nestle develops its company by the way of acquisition they begin other international companies to expand their market. However, it also faces the risk of controlling their business with a large market from different locations. Many companies enter into the food industry which has increased the morsel of competitors in this market. Nestle has focused on finding anddeveloping new products that concentrate on health and how to maintain customers health. The main competitors of Nestle are Unilever, PepsiCo Inc., Kraft Foods Group Inc., and Groupe Danone S.A. Through five years, the profit of Nestle Australia was decrease because of the competition of other companies in 2012 it profit was 248,505 million.Table 1 Financial of Nestle in the be 5 yearsThis report will recognize some strengths, weakness, opportunity and threat for Nestle. The below sectionalization has taken a brief overview of SWOT analysis. In the discussion section, the key of strengths, weaknesses, opportunities and weaknesses are analyzed in more particular. Finally, the suggestion for the company is made.SWOT AnalysisStrength light-coloredness1. Worlds largest beverage and food company ($7 billion in revenue).2. Affordable product price3. Wide commit of product catalogue4. Research & Development capabilities (food and nutrition research)5. Distri excl usivelyion channels and geographic presence6. efficacy in mergers and acquisitions1. Inability to provide consistent quality in food products2. Employees safety failure3. node fears to try the unique mixture product of nestle4. High Spending on advertising5. Weak implementation of Corporate Social ResponsibilityOpportunitiesThreat1. Brand image (advertising and promoting targeting children)2. Increasing demand for healthier food products3. Establishing new joint ventures4. Uses many type of marketing to promote their product1. Competition2. backlog goods3. Food contamination4. Rising of raw material price5. Trend towards healthy eating intelligenceStrengthsAs Nestl is a world renowned brand it has certain key core competencies. One would be the unmatched product and brand portfolio. The business offers one of the widest portfolios of food and brewery products in its sector. It also operates 29 brands that take a shit more than $1 billion in annual revenues. With more than 8,000 products it is hard for any other corporeal to compete against Nestl. Second would be the companys ability to grow with research and development. Nestl invested more than $2 billion in research and development in 2011. Its introducing new and redesigned products every year, strengthening strongs competitive advantage.Third would be the distribution channels and geographic presence. Nestl runs in more than c countries and has extensive distribution channel all over the world, which supports its operations globally. Fourth is the core competency in mergers and acquisitions. Over the years Nestl has been forming successful partnerships and acquiring other companies in order to grow and maintain its leading in the market. Lastly the brand reputation valued at $7 billion. Nestl is known almost all over and has a reputable brand for its products that are used by millions every day.WeaknessesNestl has its weaknesses however it is very token(prenominal) in comparison to other compani es. One would be its Inability to provide consistent quality in food products. Nestl has been recalling many products from trade due to food contamination or poor quality supplies. This does non besides hurt firms sales but its image as well as the business is unable to control quality of the products. A nonher would be its weak implementation of corporate companionable responsibility. The company has announced and is involved in many programs that aim to make company more eco-friendly and change the workingconditions of its suppliers. Still, Nestl receives a lot criticism over the effectiveness of its programs.OpportunitiesEvery individual company is seeking to maximise their opportunities, However, when taken into consideration few key areas substructure be taken into account. First is the increase demand for healthier food products. The trend of buying and consuming only healthy food products is a major(ip) shift in consumer tastes and opens up an immense market for companie s. Currently, Nestl tries to introduce more healthy food products in response to the trend. Another is acquiring start-ups specializing in producing well-being products. Many new start-ups are forming and introducing new products for well-being or revolutionizing the ways those products are made. Start-ups are cheap and can easily be acquired. Nestl is steering on providing more well-being products and this is a great opportunity to expand its portfolio. Another good opportunity for Nestl would be establishing new joint ventures. Nestle is already involved in many successful partnerships with major world companies like The Coca-Cola Company and Android.ThreatsMajority of the companies in businesses face threats on daily basis however, it the actions that pauperism to be taken in order to minimise future threats. One major factor is Food contamination. Although it is Nestls responsibility to run thorough quality checks of its products, the company had been reportedly providing cont aminated food or other products to the market. Such actions hurt companys reputation and ending in losses. Second would be the trend towards healthy eating. Nestl is a major supplier of chocolate and chocolate drinks that have high take of calories and due to changing customer habits, will experience decline in demand. As the Growth of confidential labels is rapidly increasing, this may have a long term effect on Nestl. The growing number of supermarkets and other retailers are introducing their own label products that cost less and can easily compete with Nestls product portfolio. Lastly, rising raw food prices which generates a massive impact for all businesses. With an overall egress of world economy and population, the demand for raw food will rise. The result of that will be high material costs and squeezed margin for Nestl.RecommendationsThe Entourages new idea is a novel, unique and invigorate product whose immense popularity will see it flying off store shelves and is surely going to be a new step forward for the Nestle Company. The product in question is a new type of cereal, which may seem dull and boring at first glance, but the appeal of the product lies more in its enhanced practicality. The product is a range of new cereal flavours consisting of wheat flakes, change fruit and flavouring (chocolate, vanilla etc.). The wheat flakes will be in the shape of triangles, to achieve a brand image and for consumers to relate a simple/everyday object with our cereal, so that they are invariably reminded of it.The cereal is sold inside bottles/cans. When consumers buy the product, they will simply need to pour milk into the container and the result is an instant cereal fix, whether at home, at work, on the bus or anywhere else. The bottle/can also come with a resealable lid, which can be opened and closed at will to neutralise spilling the cereal. Other cereal products force the consumer to sit and eat, despite the fact that they may be running la te and other on the go products are liquefied scratch that merely provides a mild aptitude boost, whereas our product combines the best of both worlds. Not only does the consumer get a filling, wholesome and tasty breakfast, but they also receive these benefits without sacrificing time, an important resource in the morning. Strategy ProfilesCompetition (Threat)/Brand Recognition ecumenical (Strength) A day to day problem for firms is the constant competition from other businesses, whether minor or major. When attempting to found a product and/or maintain its life on store shelves, there will always be demand for a competitors product. However, with smart advertising and a big adduce like Nestle, we can work to ensure that our product is what people are constantly talking about. Products are high in sugar and fat (Weakness)/Further research into nutrition (Opportunity) Our product may not be the most fattening item on store shelves, but a high sugar content isnt usually the b est image for a product. But with research into health and nutrition, the product canchange.By constantly tinkering with and changing the recipe, we will be able to achieve a product that is not only nutritious, but retains that delicious flavour that the product is famous for. Customer fears to try the product (Weakness)/Affordable product price (Strength) Consumers will always prefer to buy products that they are familiar with, quite of trying new items and because of this, it can be very difficult to introduce a new product into the market. While it can be difficult to persuade the consumer, making a price that is not only fair, but less than your competitors, can have an impact in how your product is perceived. Having a cheaper price may not be a substantial selling point, but it would succeed in gaining new customers and niggling bonuses like these can add up to be a major benefit.ReferencesNavi, G 2009, Nestle, Scribd, viewed 18th family 2013, http//www.scribd.com/doc/21544 545/Introduction-Nestle-Was-Founded-in-1866-by-Henri-Nestle-AndNestle 2013, Nutrition, Health & health New Product Development at Nestl, Business lineament Studies, viewed 18 September 2013, http//businesscasestudies.co.uk/nestle/nutrition-health-wellness-new-product-development-at-nestle/introduction.htmlaxzz2f1LLXlr9Nestle Group Limited 2011, The Worlds leading Health, Wellness and Nutrition Company Annual Report 2011, Nestle Group Limited, viewed 18 September 2013,Nestle 2013, more or less Us, Nestle, viewed 18 September 2013,Interbrand 2013, Nestle, viewed 18 September 2013, retrieved from Interbrand databaseOverview of the Nestl Oceania region 2013, Nestle, viewed 13 September 2013,