Nestle SWOT Analysis Essay

StrengthStrengths are unity of the internal factor expire the organization to the success pathway and the business which al petty(a) you to operate more effectively than your competitors. For employment, strength could be your specialist technical knowledge. As Nestle is a head-known punctuate in the world, so this is well behaved for NESCAF to make any throw push through development and it is believed that NESCAF is the major player in burnt umber market and it has a strong brand names because of associating with Nestle which has deal market share in the world. The companys hot drinks portfolio includes a number of high-recognition brands supported by considerable marketing and research and development resources, much(prenominal)(prenominal) as NESCAF and Milo. In addition, NESCAF always fork over and bear on the good property control over the products. Today, experts have that moderate drinking chocolate consumption of up to 4- 5 cups per day is not associated w ith detrimental effect on wellness and may thus fit within a balanced and active lifestyle.Health conscious(p) products are made keeping in mind the nutritious values. NESCAF are good in advancement strategies such as advertisement. The company used direct advertising and hidden advertising on TV .In addition, they have promotion with posters, billboards or motley contest in collection to find the advancener from our company. This is a good promotion strategy of NESCAF because it deal increase gross sales and profitability for our company even more. This is one example of promotions for customers who desire playing internet online by website Facebook that has name the game is NESCAF Gold Cup close Challenge Game by player must kick to the goal.WeaknessesWeaknesses, it is define as internal purlieu that place an organization at disadvantage or work against a successful outcome. NESCAF biased low margin profit lead to weaknesses. As common as we know that NESCAF are cheaper enough that customers brush off be acquired. Meanwhile the personify of end product NESCAF and wages range of employees is relatively higher in order to encourage employees to perform tasks efficiency. From that, we send away know that NESCAF are not having large amount of profit. Inability to stick out consistent quality is one of the NESCAFs weaknesses.Many NESCAF products had been recalled from trade due to poor quality suppliers. This does not only hurt the firms image but as well as its sale as well as the business is uncontrollable quality of the products. Moreover, coffee consumers have come to expect excellent quality of NESCAF as a basic feature in their coffee.A critical threat to NESCAFs brand image and consequently brand shares could create due to the low awareness of NESCAFs coffee quality. Health-conscious consumers are being disregarded due to caffeine-based products of NESCAF. Formulation of NESCAF is biased towards containing caffeine. A large amount of caffei ne consumed canister resulting in negative affect on blood sugar levels that influences fat burning that could change into storing fat. Hence, health-conscious consumers distract caffeine which both s and regular coffee have been related to increased bladder genus Cancer risk. Besides that, caffeine when consumed in excess can be addictive and stimulate.OpportunityOpportunity can be define as a potential favorable condition in which an organization can capitalize on a changing trend or an increasing demand for a product. It withal can be said that a time or set of circumstances that makes it possible to do something. The first luck for the product NESCAF coffee is the premium trend. In now a day, while the mass-market set of NESCAF is an obstacle, the demand for premium coffee products are growing rapidly. This creates opportunities for the company to generate growth in progress markets through the development of brands and extensions, such as Nespresso and NESCAF Dolce Gust o. In addition to developing product lines for the mass and the premium market, the company recognizes the rising consumer trend of eating out and is looking for ways to capitalize on the locating. NESCAF is a well-known brand so awareness is the competitive edge in the coffee market. The health trend besides is the opportunity for the product NESCAF coffee. Many people are more take wish of their healthy life. While the coffee has not received the positive health-related publicity of tea, its image of coffee became little and less resolutely unhealthy in fresh years.However, there is a general shift toward-consciousness, and NESCAF coffee has done well in that aspect by having some of their products certified as the healthier alternative by the Health Promotion Board of Singapore. In additional, coffee canhelp to prevent various diseases, including Parkinsons diseases. Coffee also used as an enema to treat some diseases such as cancer. Coffee enemas are used as a part of the Gerson Therapy that is cancer patient are tempered with caffeinated coffee in the form of enemas every four hours on a daily basis. This kind of preaching is continues to be used at the hospital of the Baja California in Tijuana, Mexico. The next opportunity for the NESCAF coffee is the cross-branding. NESCAF coffee had diversified their beverage portfolio offers it the opportunity to develop brands from different categories in hot drinks.Notably, it get outing be further develop its confectionery brands in other products along the lines of existing. Besides that, the company had also tried out some cross brand promotional activities like promoting NESCAF coffee and Coffee Mate together in the NESCAF dream couples contest. Worldwide NESCAF coffee is the largest profit making category with different ranges of coffee starting from instant coffee specialties. With the effort, analyzing and learning from this huge and successful multinational corporation.ThreatThe term threat in dr ess up analysis defined as the elements in the environment that could cause trouble for the business. The threat that existed that could affect the sales of NESCAF is, firstly, the competition of the other companies that existed in the same industry. NESCAFs products are almostly coffees product. Thus, the products such like Old Town White Coffee, and some other tasty coffee such like Old Town Hazelnut White Coffee that produce by OLDTOWN strong competitor to NESCAF in Malaysia. Beside this, the biggest competitor to NESCAF could be Super Group Ltd from Singapore that is producing a several of coffee product, such as 3 in 1 brown sugar coffee, 3 in 1 rich coffee and 2 in 1 Kopi O. The price of products of Super Group Ltd also slightly lower than NESCAF products, for example the NESCAF 3 in 1 mild (30 x 20g) are rat in RM 10.99 in most case, but Super coffee 3 in 1 regular (30 x 20g) are sell in RM 10.50. As a consumer, they will go for the product that is cheaper usually. For OLDT OWN, although their products are the highest price as canvass to NESCAF and Super Coffee, but the coffee that produces by this company is very rich, so as a consumer that cut across for a rich taste of coffee, they will go for Old Town Coffee products.Thus, if can be clearlystate that NESCAF is in a large competition with other companies in this industry. The threat for NESCAF could also be the changing of consumer trend. Now a day, people are more concern of the health, so the coffee that contains caffeine will cause consumer to avoid it for the well-being of healthy life. Caffeine can consider as a kind of drug that it will cause addiction to it and fast or irregular shopping centre beat rate. Other than that, 3 in 1 coffee also contain sugar that will cause diabetes (if high intake). So, as a consumer, that pay attention on personal and family health will avoid consuming the coffee. Other than that, consumer nowadays also prefer to enjoy a relaxing and luxuriousness life, so they would rather sit chthonian Starbuck or Coffee Bean or some other Caf, enjoy a rich coffee such like cappuccino that made by professional machine, under a comfortable environment, than just make an cheap ordinary instant 3 in 1 coffee at home that without any milk foam on it.The inflation in prudence environment could affect the sales of NESCAF products. This is due to the inflation will lead to increasing in equal of the coffee bean, sugar and milk which is the important raw materials for NESCAF products. With the rose of the price of raw materials of NESCAF, the cost of production of NESCAF product will increase as well. Beside this, the rose of the price of burn down which just happen recent in Malaysia (increase of RM0.20 per liter), could bring a huge impact on NESCAF products. This is because of the increasing in price of fuel lead to increasing of transportation cost as well, which will eventually increase the cost of NESCAF products. found on a consumer opinion, inf lation that leads to rise of expenses will cause consumers to take their expenses on coffee product. kind between strength, weaknesses, opportunity, and threat Based on SWOT study, strengths and weaknesses are internal factors of NESCAF that give advantages or disadvantages, and opportunity and threat are the outside factors. It requires flexibility use between this four internal and external factors to maintain a brand perform excellent at the market.The internal strength of NESCAF can use to against the external threat. For example, strong brand name (Nestle) and mass market share because of high recognition of NESCAF, this is what makes this brand win over all other competitor such as Old Town. Other than this, NESCAF tend to provide and maintain good quality of its product (expertise agreed on 4-5 cups per day doesnt affectthe health state of a person), which can adapt to the changing consumer trend to a healthier life style. NESCAF also good in promotion strategies which can continuously increase the sale of NESCAF products which allow it adapt to the situation where inflation happen (increase of sales- increase of profit- cover the rise of cost during inflation).The external opportunity of NESCAF can be used to against its internal weaknesses. For example, NESCAF as a premium trend allow the demand to its products to growth in a mature market (opportunity), with the base of high sales, the low margin profit of NESCAF (weaknesses) wouldnt cost losses in order to cover up the cost and expenses during the production of NESCAF. Other than that, having coffee product to certified as a healthier option now a day (opportunity) can reduce the society health conscious on the caffeine which contain in the coffee (weaknesses).