1h|s SWC1 ana|ys|s |s about Nest|

Strengths
Clobal food producer locaLed ln over 100 counLrles conslsLenLly one of Lhe worlds largesL
producers of food producLs wlLh sales ln Lhe uSA ln 2008 of $10 bllllon sales and earnlngs ln
2008 were beLLer Lhan expecLed even ln a downLurned economy Clobal sales ln 2008 Lopped
$101 bllllon
8epeaLedly ranked as Lhe worlds largesL boLLled waLer company and have seL up faclllLles Lo
operaLe waLer resources ln a responslble manner
ln 2008 nesLle was named one of Amerlcas MosL Admlred lood Companles ln lorLune
magazlne for Lhe LwelfLh consecuLlve year
nesLle provldes quallLy brands and producLs and llne exLenslons LhaL are wellknown Lopselllng
brands lncludlng
Lean Culslne ?oplalL Maggl and uryer's/Lddy's Paagenuazs SLouffers 8oosL ulbs PoL
ockeLs
ChocolaLe and Candy klL kaL 1oll Pouse 8uLLerflnger 8aby 8uLh Crunch 8ar Lhe Wllly Wonka
Candy llne
eL roducLs urlna Alpo CaL Chow lancy leasL lrlskles 1ldy CaL
urlnks CarnaLlon errler nesqulk S ellegrlno nescafe Coffee MaLe 1asLers Cholce !ulcy
!ulce
Ceneral Mllls subsldlary whlch makes 8eLLy Crocker 8lsqulck Pamburger Pelper lllsbury Cld
Ll aso cereals frulL snacks frozen plzza canned soups frozen vegeLables readymade frozen
meals
Cerber baby formula prepared baby foods baby cereals waLer [ulce yogurL foods for lnfanLs
Loddlers and preschoolers
rofesslonal brands sold Lo resLauranLs colleges hoLels and food professlonals lncludlng !enny
Cralg meals lmpacL llquld meals for Lrauma paLlenLs llquld meals for dlabeLlcs and CpLllasL
welghL loss producLs
Successful due ln parL Lo Lhelr unquesLlonable ablllLy Lo keep ma[or brands conslsLenLly ln Lhe
forefronL of consumers mlnds (and ln Lhelr shopplng carLs) by renovaLlng exlsLlng producL llnes
keeplng ma[or brands from sllpplng lnLo saLuraLlon/decllne and havlng superlor access Lo
dlsLrlbuLlon channels
Weaknesses
1helr LC1 dlvlslon was noL as successful as Lhey LhoughL lL would be ln lrance ln Lhe laLe 1980s
uannon enLered Lhe markeL wlLh a healLhbased yogurL and become Lhe Lop selllng brand of
yogurL nesLles 1994 launch was behlnd Lhe producL llfe cycle curve ln an already maLure
markeL and could noL compeLe agalnsL a sLrong esLabllshed brand
CrowLh ln Lhelr organlc food sales dlvlslon was flaL ln 2008 even Lhough Lhe lndusLry grew 89
Slnce 2004 Lhe breakfasL cereal lndusLry has been under flre from Lhe luA and Lhe Amerlcan
Medlcal AssoclaLlon boLh of whlch say LhaL false clalms of hearL healLhy and lower
cholesLerol need Lo be removed from packaglng and adverLlslng 1hey have also been forced Lo
reduce Lhe amounL of sugar ln Lhelr producLs as parenLs advocaLes groups clalmed Lhey were
conLrlbuLlng Lo Lhe dlabeLes epldemlc among Amerlcan chlldren
Ceneral Mllls ls an experlenced esLabllshed brand and are Lhe markeL leader ln Lhe uSA
however Lhey have been lacklng ln lnnovaLlon have noL cashed ln on Lhe boomlng healLh food
craze and have been behlnd ln creaLlng new nlche producLs especlally ln Lhelr yogurL dlvlslon
where ?oplalL ls Lhe only brand maklng a proflL
ln 2008 alLhough Lhelr producLs dld noL carry Lhe recalled plsLachlos several of Lhelr lce cream
brands uryers Lddy's and Paagenuazs were sLlll plagued wlLh bad 8 and loss of sales
Cpportun|t|es
ln Lodays healLh consclous socleLles Lhey can lnLroduce more healLhbased producLs and
because Lhey are a markeL leader Lhey would llkely be more successful
rovlde allergen free food lLems such as gluLen free and peanuL free
1hey launched a new premlum llne of hlgher cacao conLenL chocolaLes dubbed nesLle 1reasures
Cold ln order Lo cash ln on Lhe recesslon economy ln whlch consumers cuL back on luxury
goods buL regularly lndulge ln candy and chocolaLe Amerlcans wanL luxury chocolaLes and
hlghend chocolaLe ls lmmune Lo Lhe recesslon (so far) because lL ls an lnexpenslve lndulgence
Cpened nesLle Cafes ln ma[or clLles Lo feaLure nesLle producLs
1hreats
Any conLamlnaLlon of Lhe food supply especlally ecoll 1helr 1oll Pouse brand cookle dough was
recalled ln March of 2009 because of ecoll CuLbreaks were llnked Lo 28 sLaLes and Lhe producL
had Lo be recalled globally nesLle has yeL Lo flnd ouL how Lhls happened and ls sLlll
lnvesLlgaLlng
1hey were affecLed by Lhe peL food recall ln 2007 ln whlch 93 dlfferenL brands of dog and caL
foods were recalled due Lo conLamlnaLlon wlLh raL polson Also ln 2007 luA learned LhaL
cerLaln peL foods were slckenlng and kllllng caLs and dogs luA found conLamlnanLs ln vegeLable
proLelns lmporLed lnLo Lhe unlLed SLaLes from Chlna and used as lngredlenLs ln peL food
8aw chocolaLe lngredlenL prlces are soarlng dalry cosLs alone rose 30 ln 2008 Lhls cuLs heavlly
lnLo Lhelr proflL marglns and ofLen geLs passed on Lo consumers by shrlnklng Lhe packaglng ln a
way LhaL ls almosL unnoLlceableLherefore Lhe consumer ls paylng Lhe same prlces for less
producL
1hey have ma[or compeLlLors llke Persheys CadburySchweppes (owned by epsl) Land and
Chlrardelll kelloggs osL SLarbucks 8eechnuL Cuaker krafL loods uannon uelMonLe
lams LarLhs 8esL Pelnz lrlLoLay (owned by epsl)
8eferences
8oyle M (2008) MeeL Coogles Wllly Wonka 8eLrleved on !uly 12 2009
LnLrereneur Magazlne (nd) llood of lunPungry 8eLrleved on !uly 12 2009
nesLle (2009) Cood lood Cood Llfe 8eLrleved on !uly 12 2009
Sllde share (2009) nesLle 2008 C3 Larnlngs 8eLrleved !uly 12 2009