Nestle space matrix:

Financial strength:

1. Return on capital employed increases by 40% 4

2. Price earnings ratio in 2020 was 18.8 as compared to 2018 38.9 5

3. Debt equity ratio changes from 63:37 to 66:34 3

4. Net profit increased by 94% in 2020 as compared to 2018 5

5. Nestlé’s net sale increased by 20% in 2020 as compared to 2018 3

20

Industry strength:

1. In order to maximize profit possibilities, market segment growth has drawn new 5
competitors.

2. an expansion of the consumer food sector by 14% 5

3. Only 6% of businesses overall contribute to the processed milk sector. 4

4. Because of ease of entry in market, Engro Foods and Shezand Foods are 4
effectively using their resources.

18

Competitive advantage:

1. In a number of product categories, Nestle products lead the market. -2

2. high-quality countrywide product distribution networks -1

3. Nestle has a loyal following of customers. -2

4. Nestle's premium brand extension strategy ensures an extended product life cycle. -2

-7

Environmental stability:

1. A slowing economy may result in less demand -2

2. Changing inflationary circumstances in the country -2

3. Price aspects of comparable products -1

-5

1) Average FS= +20/5 = +4

2) Average CA= -7/4 = -1.75
 3) Average IS= +18/4 = +4.5
4) Average ES= -5/3 = -1.67

X = CA + IS = ( -1.75) + (+4.5) = +2.75

Y = FS + ES = (+4) + (-1.67) = +2.33

6
Conservative 5
Aggressive

4 Airblue Airline lies on this

3 Quadrant
2
P (2.20, 1.20)
1

-X X
-6 -5 -4 -3 -2 -1 1 2 3 4 5 6

-1

-2

-3

-4
Defensive Competative
-5

-6

-Y