Nestle's Success in Mature Markets

The following sample essay on Mature Markets tells about success company – Nestle.

Globalization affects the design, production, distribution, and servicing of goods and services. A truly global company must provide consumers with products that are designed with local tastes in mind. Nestles© spends a lot of time and money creating products that are aimed at specific geographic markets. For example, in Japan, Nestles© has had a lot of success selling their Kit Kate candy bars in limited edition flavors like green tea, soy sauce and wassail.

(Madden, 2010) These flavors are only sold for two months each which increases demand and keeps the product “news worthy” among consumers.

Within the framework of the competitive environment, technology involves genealogical diffusion and disruptive technologies, the information age, and Increasing knowledge Intensity. Nestles© utilizes technological advancements to Its advantage. In fact, the company’s mall appeal Is “the scale and quality of Its global distribution system. ” (Tanner, 2009, p. 30) Quality is equally important in the competitive environment.

If food products do not taste good, there is little hope that Its company can survive.

According to their website, Nestles©’s Sino “is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. ” (Nestles© Corporation, AAA, Para. 2) This vision is supported by Nestles©’s three-tiered mission entitled Creating Shared Value. Nestles© understands that to be a good global citizen it must be compliant with all laws, business principles, and codes of conduct within their operating countries. In addition to compliance, the corporation understands that sustainability of our planet’s resources is also of most importance (Nestles© Corporation, Bibb, p.

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. However, to be the best company that it can be, Nestles© goes one step further and promotes Creating Shared Value, which means that in order to create long-term value for its shareholders, the corporation must also create value within society. Nestles© “consciously identifies areas of focus, where: a) shareholders’ interest and society strongly intersect, and b) where value creation can be optimized for both. ” (Nestles© Corporation, Bibb, p. 9) After significant study, Nestles© decided the three areas of focus would be nutrition, water, and rural development.

Term Paper On Nestle

As with all public companies, Nestles© has three primary stakeholders: capital market stakeholders, product market stakeholders, and organizational stakeholders. Nestles© manages its relationships with its capital market stakeholders (including shareholders and its major suppliers of capital) by continuing to earn profits in a sluggish economy, including slowing growth in the personal and home care products sector. Nestles© must find ways to achieve profits even as prices for commodities (milk, sugar) continue to rise. Nestles© takes its responsibility towards its capital marker takeovers very seriously.

The company continues to reevaluate its product lines to ensure that it focuses on areas “promising higher growth and returns. ” (Hit & Hosking’s, 2009, p. 266) Product market stakeholders include primary customers, suppliers, host communities, and unions while organizational stakeholders include employees, managers, and non-managers. As part of their aforementioned Creating Shared Value philosophy, Nestle has created ten fundamental principles (or leadership tasks) that guide its strategy; all ten are linked to either the company’s reduce market or organizational stakeholders.