(translated and retold by my "boss", that lady who is always at the computer typing great kids stories and updating my website).Ī Russian folk tale on friendship and sharing.Ī Greek myth that explains the origin of spiders, and in the myth LEGENDS AND FOLKTALES FOR KIDSĪn Indian myth about the invention of the chess game. Old folktales and modern stories from Barry4Kids, pet dog Barry's website for children around the world who are learning English as a second or foreign language (also for visually impaired) Porter’s Five Forces Model and Porter’s Value Chain of Nestle. Thus, the threat of substitutes is high for Nestle. Nestle strives to highlight the healthy aspects of its products so as to tackle the substitutes. This has led to the increase in the sale of substitutes amongst health conscious people. There are also allegations against some of the products of Nestle as not being healthy for consumption. Many of the products have homemade substitutes such as baby food. Many of Nestle products such as bottled water and pasteurized milk have substitutes that are also readily available. These aspects have helped Nestle develop brand loyalty from many of its buyers. Nestle recognizes this power of the buyers and strives to ensure that the consumers of Nestle remain satisfied. There are a number of companies that sell similar products. The switching cost is low for the consumers. They can easily switch from one brand to another, Nestle or any other brands attempts to influence the market or raise the prices. The switching cost for Nestle, if it wishes to change a supplier, is moderate as it will have to enter into new contracts and work to ensure quality form that new supplier.ĭue to a high level of competition, the bargaining power of the buyers is high. Nestle prefers long-term relations with its suppliers to ensure the quality of the raw products. Nestle, in return, holds its supplier in esteem and takes care of them (Tavsar, 2013). Therefore, any supplier that once starts supplying to Nestle never interferes with it or attempts to bargain or influence the prices. This makes it an ideal buyer for the suppliers. As a result, it requires supplies in massive quantities. Nestle holds the largest market share in the industry. This all makes the threat of new entrants low for Nestle. The existing companies have developed strong distribution networks and economies of scale that allow that to produce and deliver at low costs. Every year a number of new entrants enter the industry in an attempt to grab market share even at the local level. They have developed customer loyalty over time (Othman, 2014). They are well experienced and understand the consumer needs. The existing players hold large market shares. The consumer food industry is diverse making it tough for a new entrant. Thus, competitive rivalry for Nestle is high. All the players in the industry have to strive to retain their market share. The competition is not just for price, but for product variety, creativity, promotional offers, and so on. All of these firms spend large amounts on marketing and advertisement, especially during product launches. Although Nestle is one of the largest players in the industry with more than 150 years of experience, it is still facing competition from these brands. In certain products, such as breakfast cereal, there are particular competitors of those products such as Kellogg’s. The competitors of Nestle are Kraft Foods, P&G and Group Danone. Nestle operates in the consumer food industry that faces intense competition. Nestle is well known for its continuous growth through innovation and research that has helped it become the market leader and understand what the consumers want.įollowing is a detailed Porter Five Forces Model Analysis of Nestle: Some of them are Cross & Blackwell, Gerber, and Libby’s. Over its life, Nestle has made a number of acquisitions that have helped it grow and diversify its product portfolio. Nestle also holds majority shares of L’Oreal, the world’s largest cosmetic company. Nestle operates in 194 countries with its 447 production facilities that employ 339,000 employees. The main products of Nestle are medical food, baby food, cereals, mineral water, coffee, dairy products, frozen food, pet food, and snacks. Nestle was found in 1866 by Henri Nestle. It is one of the world’s best food companies and was ranked 33rd in Fortune Global 500 in 2016. Nestle is a Switzerland based multinational food and drink company. It has strong brand & long history therefore, consumer commonly use its products. This is the detailed Porter’s Five Forces Model of Nestle which is one the top-notch company operating in consumer goods industry.
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