C/M/265. Nestle competitive Environment

This report focuses on an analysis of Nestle, manufacturers in food, pet foods and bottled water; it is presented in four sections. A PESTLE analysis of the industry; and then an analysis of the industry using Porters Five Forces of competition. The report discussed the strategic alliances that Nestle has developed. The report concludes with a SWOT of Nestle. The report has found that Nestle have developed considerable competitive advantage through their policies of globalisation and product development. Their globalisation strategy allows the regional managers a high degree of autonomy, allowing local preferences to be catered for and comparative advantage to be exploited. Nestle have also developed strong strategic alliances which have assisted their sources of supply and developed strong barriers to consumers switching brands, such as Nespresso machines. The SWOT analysis demonstrates that the company has very few weaknesses.