Question

Discuss the overall competitive position of Nestle.

Answer 1

Nestle is in good competitive position but there is room for improvement because

1. Wide coverage in location(86 countries)with respect to business activities thereby utilising economies of scale.

2. Great brand value owing to its services since 140 years

3. Commendable strategies : In Asia, it is acquiring the local companies and use the expertise and knowledge of the employees to study and increase the market which will be tough for foreigners.

4. The food market in which it operates has high level of substitution and is very competitive so there is always a threat from competitors moves.

5.It has highly organised and structured system and commendable in terms of operations.