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 thefocuses 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 financialcrisis (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 lifestyleso that the demand of carbonated soft drinks might decrease. It is essential for Nestle to develop new products to better meetcustomer 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 effectivemarketing. For example, the emergence of social media provides a more effective platform for the company’s

marketing(Erdo?mu? & ?i?ek, 2012). Generally speaking, Nestle is facing some challenges and opportunities in the currentbusiness environment.C ompetitor’s analysi s

Nestle aims to provide coffee drink to target consumers and specialized in carbonated soft drinks. Depending on its effectivemarketing strategy and excellent products, the company has achieved a huge success at the global level. But, on the otherhand, it also should be noticed that the Nestle also is facing great competition pressure from its competitors as more andmore competitors provide similar products to target consumers in the market. There are many direct and indirect competitorsfor the company in the market. The main competitors of Nestle include Starbucks and Maxwell House. Fig 1 belowdemonstrates 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 andsupport (Schofield, 2008). However, low price and convenience for customers are the advantages of Nestle compared withStarbucks.

Positioning map Maxwell House coffee brand also is one of key competitors for the Nestle. The Maxwell House coffee brandis welcomed by consumers due to its high quality products, excellent service and good brand image. In addition to this, thecompany 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 isalso a significant advantage if Nestle compared with Maxwell House coffee.$ Low price

Classic ConvenienceReference

Erdo?mu?, ? & ?i?ek, M (2012). The Impact of Social Media Marketing on Brand Loyalty. Procedia - Social and BehavioralSciences, 58, 1353-1360.

Moro, B (2014). Lessons from the European economic and financial great crisis: A survey. European Journal of PoliticalEconomy, 34, S9-S24.

Schofield, J (2008). \"Starbucks lets customers have their say\".The Guardian (London). Stadler, R.H. & Hughes, G. &Guillaume-Gentil, O. (2014). Safety of Food and Beverages: Coffee, Tea and Herbals, Cocoa and Derived Products.Encyclopedia of Food Safety, 3, 371-383.