SWOT Analysis of Nestle Australia Ltd Essay

Executive SummaryThis turn out (strength, weakness, opportunity, threat) report examines those four beas of a tender go up yield in the market. This carrefour has a fresh and unique mixture that has never been in the local market shelves ever before. Although this report is mainly about the sensitive mathematical product, it also looks at the history of cuddle and goes into depth about the turn out of the caller-up. Introduction and background This argona set asides a brief everywhereview of the companys products that has already been in the market, its current market, and relevant history of the breakfast products of Nestle. wonk table A one page 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 virtually important to the to the lowest degree. Recommendations A two page description of the new product, and apology of the choice made by c hoosing this product using at least one of the four analysis points.IntroductionNestle is the worlds atomic number 82 solid nutriment company. Nestle was found in 1866 by Henri Nestle and became one of the rangygest food and beverage company. Nestle started at providing babies food with senior high school quality. However, in recent old age, Nestle has focused on nutrition, health and wellbeing. Since mental institution until now, Nestle has been through 6 stages1866 1918 Food products for babies and Powder milk1918 1944 Chocolate, chocolate and Fresh milk1944 1975 Fast food Maggi1975 1981 Fast food products1981 1996 yogurt and Butter1966 Present Ice cream.Nestle develops its company by the focusing of acquisition they acquire some other international companies to expand their market. However, it also faces the happen of controlling their business with a large market from different locations. legion(predicate) companies enter into the food industry which has increase d the number of competitors in this market. Nestle has focused on finding anddeveloping new products that concentrate on health and how to adduce customers health. The main competitors of Nestle be Unilever, PepsiCo Inc., Kraft Foods separate Inc., and Groupe Danone S.A. Through five years, the profit of Nestle Australia was decline because of the competition of other companies in 2012 it profit was 248,505 million.Table 1 financial of Nestle in the last 5 yearsThis report go away recognize some strengths, weakness, opportunity and threat for Nestle. The below section has interpreted a brief overview of SWOT analysis. In the discussion section, the key of strengths, weaknesses, opportunities and weaknesses are analyzed in to a greater extent particular. Finally, the suggestion for the company is made.SWOT abbreviationStrengthWeakness1. Worlds largest beverage and food company ($7 one thousand thousand in revenue).2. Affordable product price3. large-minded range of product c atalogue4. Research & Development capabilities (food and nutrition research)5. dissemination channels and geographic presence6. Competency in mergers and acquisitions1. Inability to leave consistent quality in food products2. Employees safety failure3. node fears to try the unique mixture product of nestle4. High using up on advertising5. Weak implementation of Corporate Social righteousnessOpportunitiesThreat1. Brand image (advertising and promoting targeting children)2. Increasing look at for healthier food products3. Establishing new joint ventures4. Uses many type of marketing to promote their product1. Competition2. Substitute estimables3. Food contamination4. Rising of young veridical price5. Trend towards healthy eatingDiscussionStrengthsAs Nestl is a world ren birthed check off it has certain key core competencies. iodine 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 earn more than than $1 billion in annual revenues. With more than 8,000 products it is hard for any other incarnate to compete against Nestl. Second would be the companys ability to wax with research and learning. Nestl invested more than $2 billion in research and development in 2011. Its introducing new and redesigned products every year, strengthening firms competitive advantage.Third would be the distri providedion channels and geographic presence. Nestl runs in more than 100 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 leadership in the market. Lastly the brand reputation valued at $7 billion. Nestl is known almost everywhere and has a reputable brand for its products that are used by millions ev ery day.WeaknessesNestl has its weaknesses however it is very marginal in comparison to other companies. nonpareil would be its Inability to provide consistent quality in food products. Nestl has been recalling many products from trade imputable to food contamination or poor quality supplies. This does not totally hurt firms sales but its image as well as the business is unable to control quality of the products. another(prenominal) would be its weak implementation of corporate social responsibility. The company has inform and is refer in many programs that aim to make company more eco-friendly and improving the workingconditions of its providers. Still, Nestl receives a lot criticism over the strong suit of its programs.OpportunitiesEvery individual company is seeking to maximise their opportunities, However, when taken into retainer few key areas put up be taken into account. First is the change magnitude demand for healthier food products. The trend of buying and consumin g besides healthy food products is a major shift in consumer tastes and opens up an immense market for companies. 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 focusing 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 want The Coca-Cola play along and Android.ThreatsMajority of the companies in businesses face threats on daily basis however, it the actions that exact to be taken in order to minimise future threats. One major pointor is Food contamination. Although it is Ne stls responsibility to run complete(a) quality checks of its products, the company had been reportedly providing contaminated food or other products to the market. Such actions hurt companys reputation and result in losses. Second would be the trend towards healthy eating. Nestl is a major supplier of chocolate and chocolate drinks that have high level of calories and due to ever-changing customer habits, result experience decline in demand. As the gain of private labels is rapidly increasing, this may have a long call 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 equal for all businesses. With an overall growth of world economy and population, the demand for raw food will rise. The result of that will be higher material costs and squeezed margin for Nestl.RecommendationsThe Entourages ne w idea is a novel, unique and inspired product whose immense popularity will see it momentary 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 grain, which may seem dull and boring at first glance, but the appeal of the product lies more in its heighten practicality. The product is a range of new cereal steps consisting of wheat flakes, modify fruit and flavouring (chocolate, vanilla etc.). The wheat flakes will be in the shape of triangles, to fulfill a brand image and for consumers to relate a simple/everyday object with our cereal, so that they are constantly 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 coif with a resealable lid, which can be opened and closed at will to avoid spilling the cereal. Other cereal products force the consumer to sit and eat, despite the fact that they may be running late and other on the go products are liquefied wampumpeag that merely provides a mild zip fastener boost, whereas our product combines the best of both worlds. Not and does the consumer get a filling, wholesome and tasty breakfast, but they also receive these benefits without sacrificing time, an important option in the morning. Strategy ProfilesCompetition (Threat)/Brand Recognition Worldwide (Strength) A day to day problem for firms is the constant competition from other businesses, whether baby or major. When attempting to launch a product and/or maintain its keep on store shelves, there will always be demand for a competitors product. However, with smart advertising and a big name like Nestle, we can work to ensure that our product is what hatful are constantly talking about. Products are high in sugar and fat (Weakness)/Further research into nutrition (Opport unity) Our product may not be the most fattening item on store shelves, but a high sugar content isnt usually the best 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 beaten(prenominal) with, instead of trying new items and because of this, it can be very baffling 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 real selling point, but it would succeed in gaining new customers and little bonuses like these can add u p to be a major benefit.ReferencesNavi, G 2009, Nestle, Scribd, viewed 18th phratry 2013, http//www.scribd.com/doc/21544545/Introduction-Nestle-Was-Founded-in-1866-by-Henri-Nestle-AndNestle 2013, Nutrition, Health & Wellness overbold Product Development at Nestl, Business Case 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, About 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,