雀巢商业环境分析

An Analysis of the Business Environment of Nestle

Nestle, which is a leading food, nutrition wellness based company around the world, has successfully globalized the operation. To promote its further success, it is necessary to analyze the current business environment faced by the company. PEST analysis will be used to analyze the business environment of Nestle. In today’s society, food safety is one of the focuses of public attention. To ensure food safety, increasing laws have been issued and implemented across the world (Stadler et al, 2014). Governments also implement strict management and control for food production. Under this condition, Nestle will face some challenges as the food management and control for food production would lead to the rise of production cost. Regarding economic environment, economic recovery has been witnessed since the recent global financial crisis (Moro, 2014). The decline in unemployment helps to ensure the purchasing power in carbonated soft drinks industry. However, the development of Nestle can be challenged by the change of lifestyle. Consumers are seeking healthful lifestyle so that the demand of carbonated soft drinks might decrease. It is essential for Nestle to develop new products to better meet customer demands. Over the past decade, technology, especially information and communication technology, has been development rapidly. The rapid development of technology provides more effective tools for the company to conduct effective marketing. For example, the emergence of social media provides a more effective platform for the company’s marketing(Erdoğmuş & Çiçek, 2012). Generally speaking, Nestle is facing some challenges and opportunities in the current business environment.

C ompetitor’s analysi s

Nestle aims to provide coffee drink to target consumers and specialized in carbonated soft drinks. Depending on its effective marketing strategy and excellent products, the company has achieved a huge success at the global level. But, on the other hand, it also should be noticed that the Nestle also is facing great competition pressure from its competitors as more and more competitors provide similar products to target consumers in the market. There are many direct and indirect competitors for the company in the market. The main competitors of Nestle include Starbucks and Maxwell House. Fig 1 below demonstrates the position of

Nestle compared with the competitors. Starbucks is one of the strongest competitors of. In recent years, Starbucks has established strong brand image in the market and has occupied more market shares by winning target consumers’ trust and support (Schofield, 2008). However, low price and convenience for customers are the advantages of Nestle compared with Starbucks.

Positioning map Maxwell House coffee brand also is one of key competitors for the Nestle. The Maxwell House coffee brand is welcomed by consumers due to its high quality products, excellent service and good brand image. In addition to this, the company also further develops and supplies more p roducts to its target consumers in order to further meet customers’ diversified demands. It also brings great challenge for Nestle. However, the positioning map shows that price advantage is also a significant advantage if Nestle compared with Maxwell House coffee.

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