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Nestle SWOT and PESTLE Analysis

ID : 52270153| Oct 2024| 21 pages

COMPANY PROFILE -Nestle S.A.

Business Sector :Food processing

Operating Geography :Switzerland, Europe, Global

About Nestle S.A. :

Nestlé S.A. is a Swiss multinational food and beverage conglomerate headquartered in Vevey, Switzerland. Founded in 1905 through the merger of the Anglo-Swiss Milk Company and Farine Lactée Henri Nestlé, the company has grown to become the largest publicly held food company globally, measured by revenue. Nestlé's extensive product portfolio includes renowned brands such as Nescafé, Kit Kat, Maggi, and Nespresso, with 29 of its brands. The company operates across 189 countries, boasting 447 factories and employing approximately 270,000 people as of 2024. Nestlé's diverse range of products spans categories including coffee, bottled water, baby food, dairy, frozen foods, snacks, and pet care. The company has a long history of strategic acquisitions, enhancing its market presence with companies like Gerber, Rowntree Mackintosh, and Crosse & Blackwell. In addition to its business ventures, Nestlé has faced controversies related to its baby formula marketing, reliance on child labour in cocoa production, and bottled water practices. Despite these challenges, the company remains a key player in the global food industry. In 2024, Laurent Freixe succeeded Mark Schneider as CEO, continuing Nestlé's legacy of innovation and expansion.

Nestlé's unique selling proposition (USP) lies in its unparalleled global presence, offering a diverse portfolio of trusted, high-quality food and beverage brands that cater to a wide range of consumer needs across 189 countries. Nestle’s vision statement reads “Nestlé aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality. The confidences that consumers have in our brands is a result of our company’s many years of knowledge in marketing, research, and development, as well as continuity – consumers relate to this and feel they can trust our products”. The company’s mission is “providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers’ needs and creating solutions; Nestle contributes to your well- being and enhances your quality of life.”

Nestle S.A. Revenue :


CHF 93.0 billion – FY ending 31st December 2023 (year-on-year decline of 1.5%)
CHF 94.4 billion – FY ending 31st December 2022

Competitive Analysis of Nestle S.A.

SWOT
PESTLE
The SWOT analysis for Nestle is presented below:
Strengths
Weaknesses
1. Extensive and diverse brand portfolio
2. Strong global presence and extensive market reach
3. Strong focus on research & development
4. Diverse and inclusive workforce
5. Rich history and expertise in nutrition, health, and wellness
1. Discrepancies in product standards across regions
2. History of allegations and involvement in scandals
Opportunities
Threats
1. Diversification through plant-based innovations
2. Addressing diverse health needs across life stages
3. Strategic joint venture for market expansion
4. Expanding strategic e-commerce reach
1. Challenges posed by escalating commodity prices
2. Cybersecurity risks from hacker groups
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Nestle S.A.

Strength

1. Extensive and diverse brand portfolio: Nestlé holds a strong and diverse brand portfolio, featuring over 2000 brands across 7 product categories, including coffee, pet care, and prepared dishes as of 2023. This extensive range allows it to cater to consumer needs at every stage of life. The company has 31 billionaire brands, such as Nespresso, KitKat, and Purina ONE, demonstrating its market strength and widespread consumer recognition. Additionally, Nestlé holds the title of the world's number one coffee company, further solidifying its leadership position in the global market. This diverse and robust portfolio provides it with a significant competitive advantage, enabling it to reach a wide audience and maintain a strong market presence.

The remaining section under "Strength" is only available in the "Complete Report" on purchase.

Weakness

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Opportunity

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Threat

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Major Competitors :

Major Brands :

  • Nescafé
  • KitKat
  • Maggi
  • Milo
  • Gerber
  • Carnation
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TABLE OF CONTENTS
DELIVERY AND FORMAT
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References used in Nestle S.A. SWOT & PESTLE Analysis Report

1. Nestle | Overview - https://www.nestle.com/about/overview
2. The Hindu - https://www.thehindu.com/sci-tech/health/nestl%C3%A9-baby-products-in-india-african-and-latin-american-countries-contain-higher-sugar-content-report/article68079102.ece
3. Live Mint - https://www.livemint.com/companies/news/fssai-to-examine-charges-against-nestle-on-adding-sugar-in-baby-food-products-11713432714593.html
4. Utopia - https://utopia.org/guide/crime-controversy-nestles-5-biggest-scandals-explained/
5. Food Bev - https://www.foodbev.com/news/nestl%C3%A9-waters-settles-legal-issues-over-illegal-water-practices-in-france
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Nestle SWOT and PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2025). Nestle SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/nestle/ [Accessed 14 Feb, 2025].

In-text: (SWOT & PESTLE.com, 2025)

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Nestle SWOT and PESTLE analysis analysis has been conducted by Hrishikesh Pingle and reviewed by senior analysts from Barakaat Consulting.

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