External Analysis Of Nestle

The External Analysis of Nestle

Nestlé, the world 's biggest food company, has established its products in many countries and it has expanded its company by increasing its food brands. Although it has many competitors, Nestlé is able to maintain its competitive advantage with the current market conditions. Since the company is the only leader in the food industry when it comes to producing products with reduced energy, they are able to market their products for a very low price. Nestlé has also great customer relations since they provide quality products at a lower price than its competitors.

They also have many brands that allow them to create many new innovative products and services. With these many brands, they are able to differentiate their products and services so that they are able to lock in customers. They have also established many alliances with other companies like General Mills and the government. Nestlé upholds its company’s values and concerns by creating a greener environment while also providing nutritious products, this allowed them to be working with the government since they see that Nestlé is maintaining the environment and helping the communities. The competitors try to get competitive advantages through their customer relationships creating a brand loyalty and through their innovative products. Nestle has successfully accomplished to have a joint venture with many companies in cereal industry, allowing for them to be global producers in over 100 countries.

Therefore, they focus on making the products specifically geared toward dieters, children, and women. Nestlé is competing with its rival companies advertising their producing more nutritious and healthy products.

PESTEL Analysis of Nestle

Political factors

Political factors are one of the major concerns when operating food industry. The industry’s policies and finances are comprised in this factor. Nestlé goes through minute examination before their products are displayed in the market. The company has earned its reputation and trust from the customers through strict quality control.

Economic Factors

People acknowledge the fact that Nestlé is one of major leading food industry. They provide tips and pointers to their local Switzerland enterprises. Not only they guide small and medium company entrepreneurs to enter and elevate the market growth, but also aid suitable environment to farmers who provide products to the industry. With well-bonded transaction with local providers, Nestlé has no longer needed to trade with other foreign countries to bargain goods. The internal transactions made Switzerland’s economy to grow, and the locals were satisfied with its low priced