NESTLE SWOT ANALYSIS

• Nestle India Limited is the Indian arm of Nestle SA,

which holds a 51% stake in the company.
•
• It is one of the leading branded processed food
companies in the country with a large market share in
products like instant coffee, instant foods, milk
products, etc.
•
• Nestlé's leading brands include Cerelac, Nestum,
Nescafe, Maggie, Kitkat, Munch and Milkmaid.
STRENGTHS
qParent support - Nestle India has a strong
support from its parent company, which is the
world’s largest processed food and beverage
company, with a presence in almost every
country.
q
q
qBrand strength - Nestle has some very strong
brands like Nescafe, Maggi and Cerelac.
WEAKNESS
v
Exports –A major portion of exports comprises
of Coffee (around 67% of the exports were that
of Nescafe instant to Russia). This constitutes a
big chunk of the total exports to a single
location.
v
v
vSupply chain - The company has a complex
supply chain management. The food industry
requires high standards of hygiene, quality of
edible inputs and personnel. The fragmented
nature of the Indian market place complicates
things more.
OPPORTUNITY
Expansion -Existing markets are not fully tapped and the
company can increase presence by penetrating further.

Product offerings - The company has the option to

introduce more brands which its parents are famed for like
breakfast cereals, Smarties Chocolates, Carnation, etc.

Global hub - Since manufacturing of some products is

cheaper in India than in other South East Asian countries,
Nestle India could become an export hub for the parent in
certain product categories.
THREATS
v
v
v
Competition - The company faces immense competition
from the organized as well as the unorganized sectors.
v
v
vSectoral woes - Rising prices of raw materials and fuels
increases packaging and manufacturing costs..
v
CONCLUSION

The food processing business in India is at a nascent stage.

Currently, only about 10% of the output is processed and
consumed in packaged form thus highlighting huge potential
for expansion and growth.

Traditionally, Indians believe in consuming fresh stuff rather

then packaged or frozen, but the trend is changing and the
new fast food generation is slowly changing.
LOREAL SWOT ANALYSIS
L’Oreal was initially known
as a hair-color formula.

Developed by French
chemist Eugene Schueller.

It was then known as
"Aureole".

Schueller formulated and
manufactured his own
products which were sold
to Parisian hairdressers.
STRENGTHS
Research and innovation -continuing research
and innovation in the interest of beauty makes
them a leader.
•

Developed activities - in the field of cosmetics as

well as in the dermatological and pharmaceutical
fields

Advertising strategy - L’Oreal’s advertising
strategy also plays a major part to its growth.
Through adapting to the culture of their target
market as the main tool of their advertisement.
WEAKNESS
Decentralization- Due to the many
subdivisions of the Company, there is a
difficulty in the control of L’Oreal. This slows
down the production of the Company .

Profit margin- The profit margin of L’Oreal is
comparably low than that of the other smaller
rivals.

Coordination and control- of the activities
and image in the worldwide market.
OPPORTUNITY
Growing demand -for beauty products gives
L’Oreal the opportunity to focus in their field
of specialization.

Greater market share-because of the
numerous patents registered by the Company.

THREATS
Competition-A threat to the L’Oreal group is
also the growing competition within the field
of .cosmetic brands

Economic downturn-Could hurt the
possibility of higher profit for the company.

Spending habits- While the L’Oreal Group
may be producing the best of its line, people
may find that their products are not of their
basic needs and would skip buying L’Oreal
products
MACRO ENVIRONMENTAL
FACTORS AFFECTING HP AND
MORRESON SUPERMARKET
Hewlett Packard (hp)

 MACRO
ENVIRONMENTA
L FACTORS
AFFECTING HP
About Hewlett Packard
(hp)
Hewlett Packard was founded in the year of
1939, and now has over 88,500 employees
worldwide.
•

Hewlett Packard is a company that offers

new technologies and research to
businesses and homes around the world by
providing the best in service, products and
sales.
•

Customer service is a top priority in

Hewlett-Packard’s mission

M a cro E n viro n m e n t


The larger societal forces that affect the whole
microenvironment.

The macro environment consists of forces

discussed in next slide.
D e m o g ra p h ic e n viro n m e n t
The organisations must now design products and marketing
programs for the specific micro-markets they wish to target.

New age communities now make up a significant part of the

population, who have clear product and brand preferences.

A demand for a wider variety of computers to suit new age

tastes, which requires the development of new products and
marketing strategies.
E co n o m ic E n viro n m e n t
Consumers must have the purchasing power to
back up their desire for the products.

Non-price factors, such as branding, are a

significant basis for competition for computer
products.

Value of the home currency, all branded
products are imported, and their prices vary
with changes in the relative exchange rates.

Increase in income, consumers are likely to
Natural environment

Issues that involve computer manufacturing

are the use of pollution from manufacturing
plants, energy consumptions which can lead
to climatic impacts.
•


Company must pay attention to above factors
so that it may not do harm to our environment
in near future.
Te ch n o lo g ica le n viro n m e n t
Reduced the size, raise efficiency and improve
product quality.


The advent Internet shopping is allowing consumers
to make purchases on-line, and from foreign
suppliers.

Reduction in the size and profitability of the

computer .
Po litica lE n viro n m e n t

Laws that regulate virtually all aspects of their

business, as health safety, pollution, and
advertising and labelling requirements.

Company should design the products keeping

all the rules an norms in mind.
C u ltu ra lE n viro n m e n t

Competition, a threat of customers switching to

unknown/local branded products available in the
market for much cheaper price.

The availability of pirated computer software

and peripherals.

Customer prefers product for a much cheaper

price available in the local market than going for
a branded one.
 Morrison supermarket

• FACTORS
AFFECTING
MORRISON
SUPERMARKET
Political environment
They need to take local council
permission to open a store in
the city.
Working with local government
agencies to provide with
employment opportunities.
Environmental and health
standards, etc.


 Technological environment
 Electroniccommerce has become a main
marketing and distribution channel. Tesco,
major competitor of Morrisons, has embraced
online marketing and distribution in a high
profile manner.

 Serviceprovision and customer transactions are all
changing rapidly due to advancement in
information technology.

 Automationof processes has resulted in lesser
number of staff in the recent years.

 Both internal and external communications
methods have improved recently due to the
increased usage of Internet, Extranet and
Intranet.
Cultural environment
A major implication for the food
and grocery industry is the
growing variety of Indian,
Chinese and other indigenous
goods.

This is clearly reflected by
Morrisons takeaway menu,
which includes the above food
types.
Economic factors
Local economic factors such as council
•

rates, local economic development

schemes, etc. affect the operations of
independent super market stores.
•

National factors such as rate of

•

inflation, recession, GNP rate of

growth, level of employment and
other budgetary decisions impact on
Morrisons.
Socio demographic
environment
Aging population of the country has
an important influence upon
Morrisons. It has become a necessity
to provide with more products to
meet this category of customers.
Slow eradication of the class system
in the U.K has led to a situation
where different types of customer
segmentation, targeting and
positioning are needed.
Busy lifestyle has resulted in the
requirement for late openings.
Ecological and ethical
environment
•

The concept of greenness is in

vogue and there is a
requirement for
environmentally friendly
activities, embracing the whole
spectrum of value chain.
• THANK YOU