i.

Fierce competition
In some products Nestle is facing fierce competition. For example, in
Milkpak Nestle is facing competition from Chaudhary Dairies Limited
who has launched “Dairy Queen” at lower prices which has decreased
market share of Milkpak. CDL has also launched “N’rish” milk powder at
lower prices, it also has capability to decrease the market share of
“NIDO”. So in long run, if Nestle do not respond to such competitors,
they may create a lot of problems in other products also.
ii. Instability of Government
Pakistan politics structure is very instable and is depressing economic
activities and volatile business environment in the state. Such instable
environment may influence the performance of all industries operating
in state and Nestle may also be influenced from such trends of instability