Question

How can Nestle turn its weaknesses and threats into strengths and opportunities? Explain.

Answer 1

It is first important to know what are the threats and weaknesses of Nestle to be able to convert them into strenghts and opportunities

Weakness -

1. Criticism over high water usage, selling contaminated food, anit - unionism, forced child labour and using unethical practices

2. Contaminated food recalls and use of dangerous substances in food products.

Threat

1. Poor water quality and its scarcity

2. Increased competition in the beverage and food industries

3. The changes in weather disasters could disrupt its food business

Now keeping all this in mind Nestle has still come out of all struggle to be one of the top companies in the world

Nestle has unmatched research and development capability spending almost CHF 1.678 billion on R&D. It has strong geographic presence with one of the best geographically diversified revenue sources.

Unrivaled product and brand portfolio of Nestle has outmatched the other competitors. Major Brands including nescafe, maggi, wagner, Gourmet, kitkat etc.

The company has been able to convert its threats and weaknesses by using environmental initiatives has helped the company to reduce waste, packaging material and by 2016 its 106 factories have become zero waste production unit.

The company shall clearly and accurately use the labels of any harmful products used in the products, transparency in material sourcing. There are various small startups coming up in various parts of the world, nestle can increase its investments to reach to larger audience