While Nestle continues to perform relatively well compared to some of its rivals such as PepsiCo, and Coca Cola, it is also facing the same critical challenge facing the entire food and drinks industry; new eating habits and lifestyles in much of the developed world. Consumer-focus on healthy beverages with less sugar content is, for example, driving the decline in sugary drinks consumption in the United States. Americans are for instance so turned off by sugary drinks they are now drinking more bottled water than soda, the first time it’s happened, amidst increased concern over their impact on health and obesity levels that have risen to the highest level in the world (Purdy 2016; Sun 2017). Such trends are not going away and mark a critical transformation in core markets, presenting both opportunities and challenges for an industry that is now at a crossroad. For many food and beverage firms such as Nestle, the pressure is to respond with new innovations, build new capabilities remaking their brand portfolios either through innovative reformulations of existing products or adding new product categories in order to tackle these new food and beverage trends sweeping the industry (Kell 2017b).
This report will identify the global food and beverage trends driving Nestlé’s external market environment focussing especially on the core UK and US markets. This will help us understand how the biggest food and beverage corporation in the world can utilize its brand competencies and take advantage of macro environmental opportunities while at the same time neutralizing emerging threats that could undermine its progress.
Jonathan Kush (2017) "Pestle and Swot Analysis of Nestle 2017" 123 Writing [Online] at https://www.123writing.com/free-sample/pestle-and-swot-analysis-of-nestle-2017
Nestlé Strategy Case Study
Key Learning Outcomes
- Understand the broad macro-environment of Nestlé and the global food and beverages industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL).
- Use our swot analysis example to gain an overall understanding of Nestlé's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the analysis of the business environment.
- To apply strategy business models and frameworks such as Pestle, Swot etc to real company cases.
Analyze the internal and external environment of Nestlé using SWOT & PESTLE
Nestlé is a Swiss-based food and beverage multinational corporation first established in 1866 by Henri Nestlé as a milk baby manufacturer before merging with milk chocolate maker Anglo-Swiss Milk Company to form the current corporation known as Nestlé. According to the 2017 FORBES Global 2000, Nestle is the world’s biggest foods and drinks firm, ahead of the likes of PepsiCo, Coca Cola, Kraft Heinz, and Anheuser-Busch InBev, making up the top five (McGrath 2017). It boasts 29 brands that earn annual retail revenue in excess of US$1billion (Annual Report 2016). These include popular brands such as Nespresso, Kit Kat, Nescafé, Smarties, and many others. The company is headquartered in Vevey, Vaud, Switzerland. Net revenue for the year ended 31st December 2016 was US$92bn on operating income (pre-tax profit) of US$13bn (Annual Report 2016).
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