Question

Analyze the industry life-cycle of Nestle.

Answer 1

Nestle is one of the worlds Biggest transational food and beverage company based out of Switzerland. It is ranked 64 among the Fortune 500 companies. ( as of 2017). they are far ehad from their competitors like Danone, Amul etc interms of their global presence

Anlysing the Portars five force model:

a: Bargaining power of buyer : high: This is majorly because of presence of many players in the market as customer has the opportunity to buy products from others.

b: Threat of substitute is high:There are many allegation on the Nestle product from nutritious perspective , like Nestle Maggi having higher content of lead which is not good for the health of people.

c: Threat of new entrants:_Low As nestle has lot of competitve advantage over others. The exsiting player hold good market share.

d:Bargaining power of suppliers;-Low:-Nestle prefers long term relationship with their suppliers and they even go along with contract manufacturing for some of their products.

Lifecycle of Nestle is very promising as they keep on adding values to their product by giving more rendetioning to it interms of taste, odur, branding etc. They are also into customising their producs based on regional specifications. ( like Atta Noodles in India, Dark chocolates in denmark from kit kat brand) etc.