Nestle SWOT Analysis Essay

StrengthStrengths be ane of the innate factor lead the organization to the success pathway and the subscriber line which dispense with you to operate more effectively than your antagonists. For example, strength could be your specialist technical knowl surround. As Nestle is a surface-known dirt in the world, so this is skilful for NESCAF to gear up any further development and it is believed that NESCAF is the major(ip) player in cocoa market and it has a strong sword names beca single-valued function of associating with Nestle which has mass market sh are in the world. The go withs hot drinks portfolio includes a number of full(prenominal)-recognition brands supported by respectable marketing and research and development resources, such as NESCAF and Milo. In addition, NESCAF perpetually render and maintain the ripe(p) quality control over the overlaps. To sidereal day, experts discipline that moderate java consumption of up to 4- 5 cups per day is non asso ciated with detrimental effect on wellness and may thus adequate within a balanced and active lifestyle.Health conscious products are make keeping in mind the nutritious values. NESCAF are good in furtherance strategies such as advertisement. The company used contain advertising and hidden advertising on TV .In addition, they carry promotion with posters, billboards or various contest in high society to find the superior from our company. This is a good promotion strategy of NESCAF because it potful increase sales and profitability for our company even more. This is one example of promotions for customers who like carry outing internet online by web rallye Facebook that has name the game is NESCAF Gold Cup mark Challenge Game by player must kick to the goal.WeaknessesWeaknesses, it is touch on as internal environment that place an organization at harm or work against a successful out scrape. NESCAF slanting slump tolerance profit lead to weaknesses. As common as we kn ow that NESCAF are cheaper enough that customers pile be acquired. Meanwhile the woo of production NESCAF and yield range of employees is relatively higher in order to encourage employees to perform tasks efficiency. From that, we can know that NESCAF are not having large amount of profit. inability to provide consistent quality is one of the NESCAFs weaknesses.Many NESCAF products had been recalled from make do due to poor quality suppliers. This does not only hurt the unwaverings work out only as well as its sale as salubrious as the business is uncontrollable quality of the products. Moreover, burnt umber consumers have come to expect excellent quality of NESCAF as a basic rollick in their hot chocolate.A critical threat to NESCAFs brand envision and consequently brand conducts could create due to the low awareness of NESCAFs burnt umber berry quality. Health-conscious consumers are being disregarded due to caffeine-based products of NESCAF. Formulation of NESCAF is biased towards containing caffeine. A large amount of caffeine consumed can resulting in detrimental affect on blood cabbage levels that influences fat burning that could intensify into storing fat. Hence, health-conscious consumers forfend caffeine which both split second and regular coffee have been related to increased bladder cancer risk. Besides that, caffeine when consumed in excess can be addictive and stimulate.OpportunityOpportunity can be define as a potential favorable hold back in which an organization can capitalize on a changing trend or an increasing demand for a product. It in like manner can be said that a time or set of bunch that makes it possible to do some(prenominal)thing. The first opportunity for the product NESCAF coffee is the superior trend. In now a day, while the mass-market positioning of NESCAF is an obstacle, the demand for subsidy coffee products are growing rapidly. This creates opportunities for the company to generate growth in mature markets through the development of brands and extensions, such as Nespresso and NESCAF Dolce Gusto. In addition to developing product lines for the mass and the premium market, the company recognizes the go consumer trend of eating out and is looking for ways to capitalize on the situation. NESCAF is a well-known brand so awareness is the competitive edge in the coffee market. The health trend also is the opportunity for the product NESCAF coffee. Many people are more take care of their muscular life. While the coffee has not received the positive health-related publicity of tea, its image of coffee became less and less resolutely unhealthy in novel years.However, there is a general shift toward-consciousness, and NESCAF coffee has done well in that aspect by having some of their products certified as the healthier option by the Health Promotion Board of Singapore. In additional, coffee canhelp to prevent various diseases, including Parkinsons diseases. Coffee also used as an enema to treat some diseases such as cancer. Coffee enemas are used as a part of the Gerson Therapy that is cancer patient are treated with caffeinated coffee in the form of enemas each four hours on a daily basis. This kind of treatment is continues to be used at the hospital of the Baja California in Tijuana, Mexico. The next opportunity for the NESCAF coffee is the cross-branding. NESCAF coffee had diversified their beverage portfolio offers it the opportunity to develop brands from early(a) categories in hot drinks.Notably, it will be further develop its confectionery brands in separate products along the lines of existing. Besides that, the company had also attempt out some cross brand promotional activities like promoting NESCAF coffee and Coffee Mate together in the NESCAF dream couples contest. Worldwide NESCAF coffee is the largest profit making category with different ranges of coffee starting from instant coffee specialties. With the effort, analyzing and learn ing from this huge and successful multinational corporation.ThreatThe enclosure threat in SWOT analysis defined as the elements in the environment that could cause trouble for the business. The threat that existed that could affect the sales of NESCAF is, firstly, the rival of the some other companies that existed in the same industry. NESCAFs products are mostly coffees product. Thus, the products such like honest-to-god townspeople White Coffee, and some other tasty coffee such like Old Town Hazelnut White Coffee that produce by OLDTOWN strong competitor to NESCAF in Malaysia. Beside this, the biggest competitor to NESCAF could be Super Group Ltd from Singapore that is producing a several of coffee product, such as 3 in 1 brown sugar coffee, 3 in 1 rich coffee and 2 in 1 Kopi O. The outlay of products of Super Group Ltd also slightly lower than NESCAF products, for example the NESCAF 3 in 1 flaccid (30 x 20g) are sell in RM 10.99 in most case, just Super coffee 3 in 1 regul ar (30 x 20g) are sell in RM 10.50. As a consumer, they will go for the product that is cheaper usually. For OLDTOWN, although their products are the highest price as compare to NESCAF and Super Coffee, but the coffee that produces by this company is very rich, so as a consumer that chase for a rich taste of coffee, they will go for Old Town Coffee products.Thus, if can be clearlystate that NESCAF is in a large competition with other companies in this industry. The threat for NESCAF could also be the changing of consumer trend. Now a day, people are more concern of the health, so the coffee that contains caffeine will cause consumer to avoid it for the well-being of healthy life. Caffeine can consider as a kind of drug that it will cause addiction to it and fast or irregular heart beat rate. Other than that, 3 in 1 coffee also contain sugar that will cause diabetes (if high intake). So, as a consumer, that pay attention on personal and family health will avoid consuming the coffee. Other than that, consumer nowadays also pick out to enjoy a relaxing and luxury life, so they would rather sit under Starbuck or Coffee Bean or some other Caf, enjoy a rich coffee such like cappuccino that made by professional machine, under a comfortable environment, than just make an cheap ordinary instant 3 in 1 coffee at home that without any milk foam on it.The pretentiousness in economy environment could affect the sales of NESCAF products. This is due to the pretension will lead to increasing in cost of the coffee bean, sugar and milk which is the important raw materials for NESCAF products. With the rose of the price of raw materials of NESCAF, the cost of production of NESCAF product will increase as well. Beside this, the rose of the price of force out which just happen recent in Malaysia (increase of RM0.20 per liter), could bring a huge impact on NESCAF products. This is because of the increasing in price of fuel lead to increasing of transportation cost as well, whi ch will lastly increase the cost of NESCAF products. Based on a consumer opinion, inflation that leads to sharpen of expenses will cause consumers to reduce their expenses on coffee product. Relationship betwixt strength, weaknesses, opportunity, and threat Based on SWOT study, strengths and weaknesses are internal factors of NESCAF that forget advantages or disadvantages, and opportunity and threat are the external factors. It requires flexibility use between this four internal and external factors to maintain a brand perform excellent at the market.The internal strength of NESCAF can use to against the external threat. For example, strong brand name (Nestle) and mass market share because of high recognition of NESCAF, this is what makes this brand win over all other competitor such as Old Town. Other than this, NESCAF tend to provide and maintain good quality of its product (expertise agreed on 4-5 cups per day doesnt affectthe health state of a person), which can align to the changing consumer trend to a healthier life style. NESCAF also good in promotion strategies which can continuously increase the sale of NESCAF products which allow it adapt to the situation where inflation happen (increase of sales- increase of profit- cover the ski lift of cost during inflation).The external opportunity of NESCAF can be used to against its internal weaknesses. For example, NESCAF as a premium trend allow the demand to its products to growth in a mature market (opportunity), with the base of high sales, the low margin profit of NESCAF (weaknesses) wouldnt cost losses in order to cover up the cost and expenses during the production of NESCAF. Other than that, having coffee product to certified as a healthier option now a day (opportunity) can reduce the society health conscious on the caffeine which contain in the coffee (weaknesses).