The EFE matrix evaluates external factors for Nestle and identifies opportunities and threats in weighted scores. It finds the biggest opportunities are few competitors in markets, increased disposable income and food consumption. However, threats include major competitors like Engro and Shakarganj, attracting new entrants by segment growth, and strong advertising by competitors. The total weighted score of opportunities is higher than threats at 3.05.
The EFE matrix evaluates external factors for Nestle and identifies opportunities and threats in weighted scores. It finds the biggest opportunities are few competitors in markets, increased disposable income and food consumption. However, threats include major competitors like Engro and Shakarganj, attracting new entrants by segment growth, and strong advertising by competitors. The total weighted score of opportunities is higher than threats at 3.05.
The EFE matrix evaluates external factors for Nestle and identifies opportunities and threats in weighted scores. It finds the biggest opportunities are few competitors in markets, increased disposable income and food consumption. However, threats include major competitors like Engro and Shakarganj, attracting new entrants by segment growth, and strong advertising by competitors. The total weighted score of opportunities is higher than threats at 3.05.
External Fctors Evaluation (EFE) Matrix for ( NESTLE)
key External Factor weight Rating Weighted Score
Opportunities
few and week competition in the markets 0.12 2 0.24
Disposable income increased by 3.6% 0.07 3 0.21 Consumer expenditure on food has increased by 3.6% 0.09 4 0.36 Papulation density has increased by 2.1 8%(pr.sq km) 0.05 3 0.15 Credit Policy can be adopt to increase sales 0.03 3 0.09 Potential in cold Dairy market 0.02 3 0.06 All companies Contribute only 2% to processed milk market 0.11 4 0.44 Pakistan as 7th largest milk producing country with milk output of 200 billion litter 0.11 3 0.33 increases in consumer food industry by 14% 0.05 4 0.2
Threats
Engro and Shakarganj as major tompelltors 0.14 3 0.42
61.kel segment growth toold attract new entrants 0.04 2 0.08 Taste of the consumer has already developed 0.02 2 0.04 Legal & ethical Issoes 0.01 2 0.02 Economic slow down can reduce demand 0.01 2 0.02 Effect of seasonality upon sales 0.05 3 0.15 Strong advertisement by major compitator 0.08 3 0.24 Total 1 3.05