Question

What is the Business Level Strategy (i.e. cost leader, differentiation, focus) of Nestle?

Answer 1

The business level strategies of Nestle include:

COST LEADERSHIP STRATEGY:

The Nestle is one of the leading quality food and beverage products producer of the world, while maintaining the quality and least cost of the products. The reasons of the cost leadership are: lower material costs due to supplies from large economical suppliers of the world market, high quality at lower costs, high level research and development, concentrating on customer’s requirements and effective inventory management.

DIFFERENTIATION STRATEGY:

The Nestle products are very different from the products of other company’s products while building a unique brand image in its customer’s eyes. The products of the Nestle are different from its competitors on quality, ingredients, features packaging, healthcare, nutrition, labeling and pricing points.

FOCUS STRATEGY:

The most important strategy is the Focus of Nestle on company’s products and keeping the cost of products at lower level without compromising towards the quality and brand image. The Nestle is focused towards selling its products to maximum customer’s by approaching them through advertisements and spreading the dealership of its products. The focus towards the differentiation of products is through constant research and development and constant improvement in its products.