Term Paper: Nestle-Sustaining Growth in Nature Markets

By | April 27, 2011

Sample Term Paper

. What are the characteristics of the Current Competitive Landscape Globalization, Technology, Knowledge, Strategic Flexibility, Quality, and Profit Pool?

Current competitive landscape:

Technology:

Nestle purely focuses on the excellence in confectionery worldwide. In this regard Product technology center (PTC) was formed. Whether it’s chocolate, confectionery, or any other water based item PTC helps and keep a check on how they are developed, processed and packed. For example while making chocolate bars the company makes sure that it won’t melt even if it’s sold in tropical region. Another issue that is being dealt is reducing calories as much as possible without affecting the taste of the product plus dropping down the level of fat to a desirable level (Nestle , 2009).

Another innovative product technology that nestle has recently adapted is the New Refrigeration System. This new technology would focus on a friendly environment, safer for human products and higher energy efficiency.

The involvement of science and technology in food products cannot be ignored and nestle is continuously working on it. Nestle is equipped with the best solution to preserve the quality of its product with the best available environmental friendly technology.

Knowledge:

In the food industry the knowledge comes from the research and continuous development. Nestle has a special unit designed entirely for R&D to improve their products and find new ways to in making healthy products

Globalization:

A global firm treats the whole world as their target market and Nestle is no exception. Nestle recognizes that globalization allows production sites to be set up far away from where its consumers are. It gives them an extra edge over their competitors (Ali, 2000)

Nestle is the largest food processor company, based in Switzerland it operates 421 plants in 60 countries. A hundred and thirty years ago when Henri Nestle founded the company he has two big visions one of them was to go international and the product was in five European countries just after four months of its launch (Parsons, 1996). Niall Fitz Gerald further made a comment that “consumers aren’t some great amorphous aggregate. They are individuals who live in 150 different countries” (Ali, 2000).

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