Pride is taken by Nestle with respect to creation and maintenance of relationships that are positive with global suppliers. As the purchasing power of Nestle is large, therefore the commodities of agriculture offered with a product have less bargain power from suppliers.
A large amount of bargain power is present with the customers with regard to Nestle products consumption(Hanson et al, 2011). There are various products which act as substitutes competing with products of Nestle directly which makes the customer preference to be influenced. Customer’s power is well understood at Nestle and therefore the company engages in innovating its products.
Substitute goods threat is high in the industry due to its diverse range nature. It is important for all organizations even nestle to consistently look for new methods of innovating the products (David, 2010). Recent years have depicted that Nestle has engaged in aspects of health and wellness for the maintenance of its products in the markets.
Nestle is known as food processing industries power house but on similar terms are competitors of Nestle such as Kraft and Unilever. Strong competition is also faced by Nestle at the local and international level.
- Diverse range of quality products delivered by the company
- Innovation is driving the company and the company also engages in consistent renovation.
- The company has an available unmatched presence of geographical consideration because of the countries number where the company is located and also because the company wants to reach the market roots. This has helped in strengthening the relationship of Nestle with its customers.
- Brand image is the company’s main strength.
- Heavy back-up of finances for investing in consistent researching and developing for further enhancing the line of products along with making investments in the market.
- Very strong presence of the company internationally not only with regard to capacities production but also with regard to share in the market
Recalling various product lines because of deteriorated quality and this led towards hampering the image of the brand
At target at being boycotted from various regional international locations due to bad brand image