Nestle and the International Market.

Nestle is a Swiss company that has its headquarters in Vevey, Switzerland. With its inception dating back to 1866, the company has tremendously grown to become the largest food and nutrition company in the globe. Today, Nestle has employed approximately 328,000 people who are managing different factories operating in almost all countries of the World. It has become a public owned company with subsidiaries all across the globe (Global Chocolate Confectionery Industry Profile, 2013).

Various economic activities have contributed to Nestlé’s expansions in the global industry. It currently has more than 450 factories that operate in both developed and developing nations. The company has created over 80000 brands and a vast range of products which cut across different countries (Global Chocolate Confectionery Industry Profile, 2013). It has ensured maximum short-term profits through the establishment of factories in various countries where raw materials are readily available. An example is the Nestlé’s operations in Cote d’ivore where it purchases cocoa which is then used in the United States for the production of chocolate. Nestle has also set up factories in Asia (e.g. India and China) and in developing nations (e.g. Cote d’ivore and Nigeria). This is due to the availability of labor in these areas of the world. To further fortify its presence in the global market, the company has made joint ventures with various companies such as Nestle and L’Oreal and Grip Modelo and Nestle Modelo (Nestle: Quest for dominance in the global coffee market, 2013).

One of the key products of this colossal company is Nestle Pure Life. It is a purified bottled water with a balance of mineral and great taste. The product was first created in 1992 and is today available in several countries across all continent. Nestle adopts a transnational international strategy whereby it strives to balance sales accrued from low growth and low risk developed countries with high growth and high risk markets found in developing nations. The company identifies potential profits in developing nations but does not take unnecessary risk even if they ensure growth (Bloomerg, 2014). This is the reason why Nestlé Pure life is not found in underdeveloped countries. However, in such cases, the company manipulates processing technology and ingredients for local conditions and employs appropriate brand to ensure its growth (Bloomerg, 2014). Therefore, Nestle strives to ensure efficiency while also ensuring responsiveness to the local markets.

References,

Bloomerg, M.G. (2014). What Nestle Says About Emerging Markets. FRPT-FMCG Snapshot, 4-   5.

Global Chocolate Confectionery Industry Profile. (2013). Chocolate Confectionery Industry          Profile: Global, 1.

Nestle: Quest for dominance in the global coffee market. (2013). Nestle: Quest for dominance in the global coffee market, 1.

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