Case Study Of Nestle And Blue Ocean Strategy

Q 1: How can General Mills and Nestle create international competitiveness by joining forces in CPW? Initially the facility based at orbe in Switzerland confirms the continued of the 20 year joint venture between Nestle & General Mills. The new center- which aims to build on Nestle’s long standing R&D experience and General Mills’ technical strengths; as well as both partners’ expertise in food processing technologies – adds to CPW’s existing 14 factories and two R&D centers worldwide.

The Strong partnership is also reflected in the joint Venture effort Nestle & General Mills make as members of the international Food and Beverage Alliance (IFBA) , by promoting balanced diets and healthy lifestyles. In 2008, CEO of each of the IFBA members singed a commitment to a set of five actions over the next five years. On a global basis , these focus on reformulating products , nutrition, communication, responsible advertising, physical activity and supporting the WHO’s global Strategy.

CPW is a 50-50 partnership with Nestle that began in 1991

CPW has to beg for consumer attention since the growth of the market is slow or stagnant. However there is a solution. That is by creating an uncontested space by developing a unique approach which will be free from competitors.

According to the case, the market for cereal breakfast is saturated and the industry will decline in the long term, hence from the blue ocean strategy perspective, CPW can seek for profitable growth by identifying lucrative markets and creating a new market space while making competition irrelevant. This happens by aligning the entire system with a strategic selection of differentiation and low cost.

Q 4: Where and how can CPW create further international sale growth

• Introduce new innovative brands to the