Strengths And Weaknesses Of Nestle

1. International competitiveness of General Mills and Nestle can achieve by joining forces in CPW

The two companies, General Mills and Nestle in this joint forum can achieve international competitive advantage and profits by using each other’s strengths and core competencies.

General Mills being the second largest cereal producer in North America boasts about its’ technical excellence and marketing expertise extended from the past 90 years in cereal market. Even though General Mills is less recognized in its’ domestic market they are enriched with an active product range globally. For an example 16% of the total sales were from outside of the USA in the year 2006.

Nestle being the largest global Food & Beverage Company with highest sales and wide range of products can undoubtedly create competitiveness to Kellogg’s Company. The strengths of General Mills such as R&D and Production can be joined with Marketing and Sales and Services under the brand name of Nestle. This European company with globalization spreads with more than 406 subsidiaries around the world.

A joint venture constantly adds value to the joint products and the products associated with the company names. The competitive advantages of each product when taken as one, can turn out to be a major strength. If not taken the advantage, can even turn into a major threat. The weaknesses of each product will be over-ridden by the other company associated in the venture.

This venture can bring innovation,