Nestle’s Sustainable Growth in Mature Market

Topics: Strategic management, Investment, Food Pages: 5 (1525 words) Published: August 21, 2013
Nestle’s sustainable growth in mature market
The company establishment
Nestle was first founded by Henri Neslte in the 1860s by developing and producing food products for babies who could not adapt mother’s milk. Following the success in baby food products, Henri incorporated with an Anglo-Swiss condensed milk company to develop dairy products, especially for government supply in World War I. High sensitive and quick responding to the demand of consumer, Nestle continued to create and develop new product mix to canned food, beverage, pet care products, to maximize its scope of business in food segment. Nestle had been incurring high success during its operation in food industry, proved by production many creative product portfolio, double sales and tripled profits, globally brand recognition, offices and factories around the world with the management of previous CEO Helmut Maucher. Maucher successfully promoted Nestle to higher position in market as a global company and has been operating beyond its original Europe boundary. Nestle seems not still happy with what it had obtained. Under leadership of current CEO Peter Brabeck, Nestle is now experiencing a more significant growth and synergies as the top nutrition and food company with strategic management of Brabeck since he took over Nestle in 1997. In today, Nestle has developed another core business to Research and Development sector to support its traditional food and beverage business. Vision and Mission

According to Chief Technology Officer, Bauer, of Nestle in his presentation, Nestle has two visions classified for its two core sectors. For the Nestle’s operation vision, it indicates Nestle’s ambition to be the world’s largest Nutrition, Health, and Wellness company that innovate and distribute nutritious products that satisfy consumers’ nutritional and emotional needs. Additionally, to have continuous product innovations, Nestle realizes the important of new product research and development. As a result, the second sector is established with the vision is “to create future, move faster and go beyond what consumers tell us” (Bauer 2009). The new sector applies science and technology into innovating and reinnovating consumer=oriented products. Mission

Brabeck’s growing strategies are aiming to position Nestle as the market leader in food industry, or at least to rank stably its product categories as second strong product power. Approaches to the mission are now strategically deploying by series of initiatives to increase internal and external operation efficiency. Nestle is currently widely known as the most success company manufacturing and distributing nutritional products for any aspect of health care. That means, Nestle already reaches the first part of its vision, however, Brabeck never stop thinking of giving Nestle to the most possibly highest position as he can and strikes strategies to advance Nestle’s competencies over its major competitors Nestle in a mature market

Industry value chain analysis
Targeted consumers: Nestle focuses on developing and manufacturing nutritious food and health care products to all types of retail consumers from premature babies to maturity and aging group. Another special profitable market for Nestle is to develop consuming products for pet care In order to Nestle’s products deliver to end-users, they are distributed by large buyers such as wholesalers, supermarkets, schools, businesses. Even they are retail or larger buyers; they of course have power over their choices and expectation of products. They are holding negotiating power on sales contracts at prices and quality they expect to. Nestle is an nutrition, health and wellness business, and it declare consumer orientation is main business development, it thus must notice to consumer’s wants and needs to offer them satisfactory products and acceptable prices. Intensive competition: Although already being the world’s largest food and beverage company, other...
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