Swot Analysis: The SWOT Analysis Of Nestle

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The SWOT analysis is a theory used to understand the behaviour of a company, regarding the external and internal environment. The initials SWOT stand for strengths, weaknesses, opportunities and threats. Strengths and weaknesses are factors arising from the internal environment. A strength is an ability, primary source or special characteristic that businesses use to gain advantage amongst other organisations. Business leverage strengths to create opportunities in the external environment; furthermore, as solutions against external threats. A strength could be a resource, in this case, a well-prepared workforce, good reputation or a good relationship between the organisation and suppliers. In fact, a weakness is the opposite of
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Their diversity of products providing quality nutrition for their consumers is Nestlé’s key success factor. However, the increase of private level acceptance in strong economies, as the UK may impact the company’s revenues. As strengths, Nestle possess some of the most popular food and beverages brands around the globe. The company provide more than 2.000 brands dedicated to provide healthier lives to the society. For instance, Nescafe that reached the position 32 of the World’s Most Valuable Brands. Nestle has strong R&D capabilities to improve consumers’ lives. Moreover, the company owns the largest R&D network of food worldwide, with 34 R&D facilities and around 5.000 people involved. As a weakness, the company present some product recalls related to product contamination. In 2013, the news that Beef Ravioli and Beef Tortellini containing horse meat went public, as a result, Nestle recalled all the products from Spain and Italy (Softpedia). Moreover, 2015, Nestle SA was forced to recall over 400 million packets of Maggy noodles from the shelves of India after local regulators found a presence of lead in some samples. (The Wall Street Journal, 2016). This issues caused loss of credibility and reputation in their

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