Analysis of Nestle Bangladesh Limited

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SWOT Analysis of Nestle Bangladesh Limited

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SWOT Analysis of Nestle Bangladesh Limited

Strengths

Strengths

1. A portfolio of products which responds to the consumer always.
2. A unique strategic position which combines powerful local brands with strong global product brands.
3. Strong internal growth and internal emphasis on innovation.
4. Carefully selected employees who are dedicative and understand company’s culture and values, and are willing to provide significant labor hours to accomplish any project efficiently.
5. Operational efficiency makes the company competitive in the market.
6. Strong cultural environment.
7. Heavy emphasis on quality and benefit of the products.
8. Centralized organization that helps in easier coordination of business activities.
9. Highly diversified product and brand portfolio, which decreases the fluctuation of company’s performance and increases competitiveness.
10. Well developed and performing R&D project which is one of the main drivers to ensure company’s growth and constantly increasing performance.

Weaknesses

1. Warehouse storage problems.
2. Diversified portfolio at times makes decision process difficult.
3. Nestlé is less well-known and only specialist products are marketed by Nestlé Nutrition.
4. Prices of some of the Nestlé products are more expensive than its competitors.
5. Unable to control raw material prices.

Opportunities

1. Good reputation, well-known brand leads to customer’s loyalty.
2. Increasing demand for healthier food products.
3. Can establish new joint ventures.
4. Launch the products with integration of social and cultural factors by matching the taste buds of Bangladeshi consumers.
5. Can enhance distribution of Infant Nutrition Products in Bangladesh where malnutrition already exists.
6. Can make certain products available in the market at a relatively lower price so that a larger number of consumers can buy it.
7. Leader in the most of the markets that show the strength to the future development.
8. Nestlé has footprints and may improve its presence in emerging markets.

Threats

1. Rivals doing more vigorous advertisements and campaigns.
2. Controversies.
3. Product pricing not preferred by many customers.
4. Far fewer staffs than actually required in terms of tasks to be completed.
5. Significantly less customer support services than is required in terms of the number of customers and the complexity of the services offered.
6. Few local manufacturers who tend to sale their products at a relatively lower price through various unethical means.
7. Uncertainty of the new market. Entering new market company cannot mitigate all the risks.
8. Changing economic and political situation, which pushes the company to make future predictions and forecasts.
9. Different needs and habits of customers in every market. Company is operating in the markets where people have different taste, habits, income, which is hard to evaluate and predict.