SWOT Analysis and Nestle Pakistan

Submitted to Tahir Ashfaq Submitted By Arslan Nawaz L1F11MCOM2165 M.Saghir Sarwar L1F11BCMH2021 M.Ali Naqvi L1F11MCOM0164 A.D Ahsan L1F11MCOM2144 Hina Razzaq L1F11MCOM2137 Javaria Abrar L1F11MCOM2142 Sumbal Aftab L1F11MCOM2146 Madiha Saber L1F11MCOM2155

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. SWOT analysis groups key pieces of information into two main categories: Internal factors The strengths and weaknesses internal to the organization. External factors The opportunities and threats presented by the external environment to the organization.

Nestle Pakistan and SWOT Analysis

Internal Factors
Strength Brand Image. Marketing strategies established by the company are innovative. Financial, marketing and sales strategies are formulated by gauging the periodic research carried out to judge market trends. It is a large scale organization, with abundant funds and has the capability of acquiring weaker firms by throwing them out of competition. Growing Sales and profits. Major shareholder in the food industry of Pakistan. Aggressive Marketing. Efficient Distribution networks through out the country. Quality Products. Environment Friendly. Skilled labor. Educated staff. Large number of offerings. Pre purchase virtual display. Good background of the company. Easy to approach outlets. Strong supply chain network Strong research and development department. Weaknesses The target market of Nestle products is upper middle and high class because lower middle and poor class cannot afford to buy Nestle products due to its premium price compare to other companies like Shezan etc. It is a main weakness of Nestle products that there are different companies which provide substitutes of Nestle products but the name of Nestle products is always stand in the last because of low advertising and marketing.

External Factors
Opportunities Nestle have opportunity to expand their product line like tea etc. Company can open separate stores for eliminating retailers. Integration of new acquisitions in growth markets. Growth in international & emerging markets. Transition to a "Nutrition and well-being" company. Continuous growth in the Pakistan coffee market. Ethical business activities and support in community. Nestle can make itself as social company. Fair Trade agreements for cocoa and other products produced in third world countries. In today's health conscious societies, they can introduce more health-based products, and because they are a market leader, they would likely be more successful. It should regularly indulge with candy and chocolates. Threats Price fluctuations due to rupee devaluation as raw material are imported. The uncertainty of economic conditions poses a great threat as the major funds invested in the country come from outside Pakistan. The present economic crisis in the world, led to the withdrawal of foreign management from the company and the investment has come to a halt. Competition with Nestls owns smuggled brands. Effect of Seasonalitys upon sales. Imported raw material, in some of the companys products. Major Player may enter target market Legal and ethical issues. Market segment growth could attract new entrants. Economic slow down can reduce demand. Main competitors Shezan, Olfrut, Maza and Haleeb are main threat for Nestle juices especially the Shezan is growing very fast. Inflation is getting higher and higher so the purchasing power of the people is decreasing day by day. Taste of consumer has already developed which is hard to change.