Nestle (Brief Overview) 1. Unconventional methodology of extension to other countries in it’s early years. 2. Nestle made a name for itself with an experiment involving a child who was intolerant to his mother’s milk or any other substitutes. Nestle not only saved the baby’s life but achieved the feat with a formula developed with a formula that included lactose as one of it’s key ingredients.
3. Several acquisitions along Nestle’s timeline would further accent its touch in its major revolution in the food industry. CASE 1: IMPORTANT FACTS OF THE CASE. 1. Nestle’s commencement in 1866 by the Swedish pharmacists and further expansion into Europe and subsequently the rest of the world 2. Nestle’s landmark acquisitions.
3. Nestle’s strategy. The writer makes a comparison to enterprises during the industrial revolution. These companies had to invest in that are almost negligible in today’s commerce activities, to start off production.
Nestle had to engage in activities with a potential high risk such as their milk collection process in china. 4. It’s broad based globalization that attracted 99% of it’s revenue from outside of it’s home country in a little over a century 5. The employment of tactics and strategy in a saturated market like Europe in the late nineties. (I.
E. potential to find an emerging market way before it gets prosperous. Responses to income levels) 6. Nestle focused more on customization instead of the then resounding and domineering globalization. They believed in customizing a product to suit a local niche one market at a time. That way new product failure rate remained minimal and New product Development grew significantly.
This process is referred to as local adaptation by the writer. CASE 2: With regards to emerging markets 1. Nestle has always pioneered in being the first mover into a new market. 2. Aligned with the vision of its proprietor they configure new products to their best fit assumption and then introduce it to a unsuspecting market. 3.
After having a substantial leverage on the market, subsequent growth in the market would also mean growth for the subsidiary market share of nestle. 4. Examples of such products experimented with include tofu, noodles and of Nestl’e’s favorite, condensed milk. 5.
Nestle noticeably pierces the market with staple or basic food items before upgrading to more upscale products. CASE 3: What is required for the strategy to work 1. A centralized organizational goal and focus on new product development accented with the regional taste. 2. An unbiased commitment to optimum product standards.
3. Subsequent monitoring and alterations as required 4. Progress report and full disclosure to stakeholders involved to determine if it is worth continuing. CASE 4: Nestle’s strategic posture at the corporate level. 1. -CASE 6: Nestle’s structure and philosophy 1.
Nestle understands that although it is humanly possible to come up with a the same best seller product in more than one country simultaneously, it is however better to begin by filling a vacuum with a product locally customized. This advantage is referred to as first mover advantage. 2. As pasted on it’s website, Nestle’s foremost objective is to manufacture and market the Company’s products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.
It also takes into consideration regional religious and social practices. For example it’s respect for dairy production in India. 3. Nestle has done a great job in actualizing it’s philosophical structure. However it emphasis on regional autonomy may conflict with it’s use of it’s “expatriate army.”.