MPOB Innovative Project

A Comparative Analysis of Nestle & Britannia

BY Reshal Tripathi (2k21/DMBA/96)
Section -B

The first thing that comes to my mind when I think about these two companies specifically,
is that they both have conquered a huge share in the market and consumers have loved
their product since ages. These are two big companies in FMCG sector and to successfully do
that you need to have things done in a better way than the others. I have tried to show the
analysis between the two based on the data present on their respective website.
Talking about Britannia first, the first challenge that company has faced during covid times is
cost. Britannia addressed the cost by significantly reducing cost by consolidating operations,
re-structuring manufacturing units, reducing complexity and eliminating wastages in the
value chain. On the other hand, Nestle has recently come up with a new model where
factory will be made of multiple, easy to assemble component sections which can be bought
directly to the site and connected together as needed which will make the process much
more simple, flexible and cost-effective. Both are following a different but yet smart
approach to cut down cost.
Information Technology is another parameter which is an important aspect today. Day by
day technology is improving and the application of it can enhance the inside operation of a
business and as well as interaction with the customers. Nestle is using machine learning and
advance analytics to transform how they use data, leverage e-commerce opportunities to
better serve customers and also driving opportunities in supply chain and manufacturing,
which plays a vital role in the business. Britannia is consistently investing in IT to improve
operational efficiencies and enhance productivity. It implemented an intelligence system to
analyse secondary sales information to drive top line growth. For less energy consumption,
the company is using new generation servers to consolidate its core ERP infrastructure.
Business Strategy is the path or the way through which organization achieve their goals and
what exactly their aim is to do with the business. Britannia focuses on brand relevance and
differentiation through product design, delivery and introducing new differentiated higher
margin products. Recently, the company is focusing on providing nutrition packed product
at affordable price. A similar approach is followed by Nestle, mainly focusing on efficient
operation and research and development capabilities. Both of the companies are intensively
focusing on nutrition aspect of their product. While Britannia is continuously focusing on
market place execution to drive higher sales and synergising all departments, Nestle is
focusing on expansion, diversification and sustainable growth.
No company is perfect and Nestle & Britannia are no exception to this. After looking at the
structure of both the companies and the parameters mentioned (Higher productivity, lower
labour turnover and absenteeism)