International Journal of Management (IJM)

Volume 11, Issue 5, May 2020, pp.2028-2034, Article ID: IJM_11_05_197

Available online at https://iaeme.com/Home/issue/IJM?Volume=11&Issue=5
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: https://doi.org/10.34218/IJM.11.5.2020.197

© IAEME Publication Scopus Indexed

SWOT ANALYSIS ON NESTLE COMPANY

Dr. Vinay Kumar Jain
Associate Professor, Department of Commerce,
Graphic Era Deemed to be University, Dehradun, India

Rishita Singh
Scholar, Department of Commerce,
Graphic Era Deemed to be University, Dehradun, India

ABSTRACT
The intention of this research is to analyse nestle as a company. This project we
have to evaluated the founding established of this mega industry. The SWOT analysis
evaluation of the company strength, weakness, opportunities and threats and helped us
in watching the external and internal environment. It wants that consumer to learn
about their product, likely customer benefits, how to use, maintain or likely get rid of
the product and new ways in which the customer can’t utilize. There are still a few
regions where it can improve to support its market positions. Nestle actually has a few
difficulty to pass and has a great deal of freedoms to develop. We are certain that Nestle
will defeat these obstacles and keep up with it situation as probably the best
organization on the world. An analysis has been performed to have a clear idea.
Primary data has also been collected from different respondents and has been analysed
in support.
Key words: Customer, Product, Environment.
Cite this Article: Vinay Kumar Jain and Rishita Singh, Swot Analysis on Nestle
Company, International Journal of Management (IJM), 11(5), 2020, pp. 2028-2034.
https://iaeme.com/Home/issue/IJM?Volume=11&Issue=5

1. INTRODUCTION
Nestle was given shape in 1905 with the combination of the "Somewhat English swiss Milk
organization'' set up in 1866 by successors George and Charles page and "Farine lactel Henri
Nestle. Settle has 447 processing plants, works in 189 nations, and utilizes around 339000. This
study speaks about the inward and outside factors that are S-strengths, W-weakness, O-
opportunity, T-threats. Concerning SWOT investigation, this condition makes a requesting
business climate in light of which the organization need to use its upper hands and capacity that
match different company.
Nestle tagline: “GOOD FOOD GOOD LIFE’’ celebrating 150 years.

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 Vinay Kumar Jain and Rishita Singh

2. LITERATURE REVIEW
Table 1
S.no Author Year Topic Publication
1. Friedhelm 2002 The secret of food, Key porter books
schwarz trust and globalization
2. Laura Klopping 2012 A global company Grin verley
under fire
3. Helmet Maucher 1994 Tough-minded MC guow-hill
strategies from the
global gaint
4. Kelvin Cherry 2014 Strategic marketing Grin publishing
management

3. OBJECTIVES
• To make mutual faith with consumers, governmental control and business partners.
• To ensure continuous development of nestle environmental performance.
• To employing advance technologies and processing.
• Protection of natural resources and minimization of waste.

4. HYPOTHESIS
H0: SWOT Analysis will not improve the strategic planning.
H1: SWOT Analysis will improve the strategic planning.

5. RESEARCH METHODOLOGY
The primary data has been collected from 100 respondents through google form and that has
been analysed using pie chart and interpretation.

6. SWOT ANALYSIS IN NESTLE

There is a look of the position of the qualities, shortcoming, openings and dangers of the settle
organization.
• Worldwide
presence • Product showcasing issues
• Expanding cash
• Various leveled structure
streams
• Strong supply • High reliance on publicizing
chain operations
Strength Weakness
• Fast innovation
• Computerized
transformation

Opportunity Threats •
• Growing Environment impact
transparency • Rising competition
• sensibility • Vital investment decision
• Item quality & safety

Figure 1
We can easily see a reasonable image of what the SWOT analysis of Nestle company is and
how they use it to settle on the major key choices. We will be taking a couple of models here
also.

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 Swot Analysis on Nestle Company

7. STRENGTH IN NESTLE
The SWOT Analysis is engaged with the strength of the organization which contribute to the
success of the company and its brand.
• Global Presence: The active presence of Nestle in 187 countries is beneficial to the
company's overall growth. The company has been present in a particular country for
over 150 years, developing a reputation in the surrounding climate. This indicates
that Nestle’s product is available to people in a variety of countries and has a long-
term impact on them.
• Expanding Cash streams: Nestle incomes expanded by 10.9% to CHF 11.9 billion
out of 2019. This implies that the gathering's accounts are solid and they can put
away more cash and can extend rapidly.
• Strong Supply-Chain Operations: The nestle group motivation innovations at the
local levels, include technology and is increasing the derivatives of the sources of
the raw-material of its products. This allows the group to achieve substantial
operational productivity.
• Quick Innovation: By investing in research at all levels and improving by assisting
hand players, Nestle has set itself up to respond quickly to needs. Nestle increased
the number of short science-to-reform events by 30% in the middle of 2019 and
added 50 new resources to begin within 6 to 12 month.
• Computerized Transformation: Nestle involvement in advanced transformation in
areas such as marketing, online media, web-based business, manufacturing, and
store network has aided them with becoming information driven. This empowers
them to customize their shopper's necessities and accomplish higher fulfillment. In
2019 Nestle has changed 70 biological systems by the assistance of man-made
reasoning and customized 20% of their customer's contacts.

8. WEAKNESS IN NESTLE
Nestle’s core competencies is its strengths, but the global giants are also facing numerous
internal weaknesses. Hence, we can easily understand the weaknesses of Nestle:
• Product-Showcasing Issues: Nestle receives a monstrous response from people of
the world for not properly positioning and marketing their products on several
occasions. The promotion of a breastfeeding child recipe to people in less wealthy
countries is an excellent example. Uninformed mothers were mixing the products
with contaminated water, resulted in a high number of illness.
• Various Leveled-Structure: Nestle present definitive development is isolated ward
its thing responsibility and not established in geographical exercises. It create a huge
power gap and prevents agility job. This developing exercises, reliably to create
critical obstruction.
• Higher Advertising Reliance: Nestle’s dependencies heavily on advertising to
promote its products, which increases advertising expenses and consequently poses
a considerable risk to earnings. With upcoming interruptions, this technique will not
be able to sustain Nestle in the long run.

9. OPPORTUNITY IN NESTLE
The unique climate is currently more associated than any other time in recent memory. It gives
various freedoms to the gathering to flourish and develop. I have recorded some of them for
your agreement:

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 Vinay Kumar Jain and Rishita Singh

• Growth being Transparent: The current buyers hold a larger information than some
other time. Because of the creating presence on the web, it will be a great idea to
grow simplicity. Growing simplicity implies that the buyer is aware of from where
the raw materials are being taken, when they are being taken, and from whom that
have been taken. The customer feels more connected to the Nestle’s brand and has
a higher level of trust in it.
• Sensibility: Integration and working cash will assist the social event in lowering
costs, increasing usefulness, and properly utilising work. Close proximity fusing and
creation will make exercises slim, lowering long-stretch costs.

10. THREATS IN NESTLE

A similar powerful environment brings with it a variety of threats due to its ever-changing
climate. Changes are driven by regular disruptions, emerging innovation, and continuous
progress. Settle, in order to assist, must continually focus on certain boundaries:
• Environmental Impact: Changes in the environment and their consequences can be
noticed in the uncultured components of numerous Nestle products. Environmental
change has an impact on uncultured components such as dirt, wheat, and dairy. They
will very certainly have an impact on Nestle development over time.
• Increasing Competition: Nestle product portfolio competes with a variety of global
and regional players. With increasing innovation and constant disruptions in the
market, settle is always in danger of losing its current customer base.
• Vital Investment decisions: Investment decision's inability to line up with such an
assorted item run bunch is uncommonly high. The gathering runs a higher danger of
losing brand presence and an expected amount of cash.
• Item’s Quality and Safety: In the past, Nestle’s reputation and customer trust
suffered greatly as a result of sanitation defiance. The clear example is that: Maggi
in India, that failed to comply with one of the research centre tests and had lost a
massive offer on the lookout as a result.

10.1 Data Analysis and interpretation

(online survey of customers of NESTLE Company)
Gender

Male
Female
Others

Figure 2
Gender: Nestle Customers consist of 53% Female, 37% Male, And 10% Others.

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 Swot Analysis on Nestle Company

Age group

Below 25
25-35
35-45
45& Above

Figure 3
Age Group: addresses the information of the age respondents:
• There are 68% of respondents from age group Below 25 years.
• The 21% of the respondents from age group 25-35.
• 6% of respondents from age group 35-45.
• 5% of respondents from age group 45& above.

Sales

Milk and Nutrition products

Chocolate and Sugar candy

Prepared dishes and cooking

aids
Beverages

Figure 4
Sales of nestle’s products:
• Milk and Nutrition products - 50%
• Chocolate and Sugar candy - 30%
• Prepared dishes and cooking aids - 12%
• Beverages - 8%

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 Vinay Kumar Jain and Rishita Singh

occupation
80

70

60

50

40 occupation

30

20

10

0
Student Business Housewife Job

Figure 5
Occupation: it shows the occupation of all the respondents.
• 68% of them are students.
• 12% of them are business.
• 10% of them are housewife.
• 11% of them are job.
• So, in general we can see that the greatest number of respondents are understudy.

11. CONCLUSION
Nestle has made some progress it has become one of the most amazing conspicuous brands on
the planet. Nestle has been fruitful in making brand stiff and building trust in the purchaser's
psyches. Nestle has endless changed with the consistently changing options and tendency of
individuals from one side of the world to the other. Nestle actually has a few difficulty to pass
and has a great deal of freedoms to develop. We are certain that Nestle will defeat these
obstacles and keep up with it situation as probably the best organization on the world.

RECOMMENDATION/SUGGESTIONS
Nestle is extremely powerful in the fast-moving consumer goods market. Anyhow, there are
still a few regions where it can improve to support its market positions.
Some of the recommendations are:
• Getting advancement in the organization's contributions.
• Becoming the quantity of new companies in the food and refreshment industry.
• To improve its production and operational procedures.
• To use original raw material to avoid protest from the environmental and social groups.

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 Swot Analysis on Nestle Company

LIMITATIONS
• Data about the organization on certain sites are outdate.
• Finished in short period.
• There were network issues.

SCOPE FOR THE FUTURE

• Study on the illustrate procedure of the organization.
• Study on the global reach of the company.
• Study on how the organizations can fell the competition.0
• Study on position and take in growth of the organization.

REFERENCES
[1] Choi, Candice, "Nestle to Shut Down Three St. Louis Plants," Daily News, April 2, 2005.
[2] Hall, William, "Leading Swiss Banker to Be Nestlé Chairman," Financial Times, September 21,
1998.
[3] "Nestlé Consolidating Its Chocolate Production," New York Times, February 5, 1993.
[4] Pink, Robert "Richenberger Keeps Nestle on Straight and Narrow," Corporate Finance, May
2004.
[5] Oram, Roderick, "Nestlé's Portfolio of Possibilities," Financial Times, August 8, 1996.
[6] Mudd, Tom, "Nestlé Plays to Global Audience," Industry Week, August 13, 2001.
[7] Pink, Robert "Richenberger Keeps Nestle on Straight and Narrow," Corporate Finance, May
2004.
[8] Harrisson, Pierre, L'Empire Nestlé, Lausanne, Switzerland: Editions P.-M. Favre, 1983.
[9] Urry, Maggie, and William Hall, "Nestlé Buys Spillers for £715m," Financial Times, February
5, 1998.
[10] Thompson, Stephanie, "Nestlé Warns Stores: Prove It or Lose It," Advertising Age, September
13, 2004.
[11] www.nestle.com
[12] https://www.nestle-esar.com/
[13] https://www.nestleusa.com/brands/websites
[14] https://www.milkmaid.in/
[15] https://en.wikipedia.org/wiki/Nestl%C3%A9
[16] https://www.facebook.com/Nestle.India/
[17] https://www.linkedin.com/company/nestle-s-a-
[18] https://www.nestlepurelife.com.

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