Strategy Of Nestle Company &Woolworths-Free-Samples for Students

Question: Competitive Strategy Of Nestle Company Woolworths Group. Answer: Nestle is one of the largest distributors of instant coffee not only in Australia but to the rest of the world. The company nowadays is identified as a global distributor of dairy products, foods and drinks including chocolate, frozen meals, noodles, ice creams and hot drinks. Nestle in Australia has thrived primarily due to the ability of the company to identify the cultural implications of expanding to the culturally diverse Oceania region. Piela, (2012) suggests that Nestle employs up to 5000 people, owns 5 distribution centers and 12 factories in the region. The main reason behind the growth of Nestle has been behind its acquisitions which have led to a large range of products that are able to beat competition through provision of variety that may be reinforced through quality of product. Strategy One may explain strategy as the ability to consolidate different tasks and aims into a single viable plan that is to be pursued by the company. Ghemawat, (2007)explains that strategy involves planning for growth and increased sales such that the company is able to identify challenges beforehand and set up solutions that keep the company maneuvering them with much ease when they emerge. For Nestle, the main goal for strategy has involved brand expansion. Primarily, the company seeks to improve the reputation of its various brands to its consumers. According to Rezaeegiglo et al., (2014), the main aspects of strategy for Nestle involve branding, communications and consumer needs. The company thrives on its ability to manage its brands and expand their popularity and recall among the consumer. With a large range of products, the company has to ensure that it has an idea what the consumer wants without necessarily waiting for a demand to emerge but by evoking the consumer interests withi n an unoccupied market opportunity. The sales team is responsible for the companys current strategy and is involved in various tasks such as consumer management, consumer interactions in chain stores, marketing and sales activities. Business Model Innovation Business model innovation involves the ability to manipulate business operations and relationships to cater for market demands such as increased competition and consumer preferences. Lindgardt et al., (2009) explains that business model innovation involves changes in supply chains, distribution, and consumer and partner relationships for the greater good of improved profitability and brand improvements. Nestles business model innovation has involved acquisitions that have been geared towards fulfilling market demands in a manner that competitors are not able to match. The main aspect of business model innovation for Nestle is ensuring that while it addresses the consumer demands, the consumer relationship through its products leads to a win-win situation (Walters Rainbird, 2004). The main challenge for the company is to ensure that it provides nutritional value while at the same time work within the constraints of production costs and requirements. However, the company has been able to grow some of its brands such as Nescafe and Nespresso. Woolworths Group Woolworths is one of the largest chain stores in Australia. The company began in the early 20th century as a story in Sydney and has grown to become a global retail store chain where shoppers are able to find value for their money through cheap options for items. According to Arli et al., (2013) Woolworths stores own up to 992 outlets across the country and employees up to 115,000 individuals to its enterprise. The growth of Woolworths in the country is commendable since the company began as a single store and has grown in its range of products. the enterprise sets itself apart from other chain stores not only by its range of products but also due to its ability to source products cheaply and thereby deliver value to its consumer at a lower cost. With the emergence of the internet and ecommerce, Woolworths has also found an opportunity in online shopping through the Woolworth App that allows its consumers to shop from any place using mobile devices. Strategy Strategy involves setting up various resources such that the company is able to maneuver challenges within the business environment. According to Ghemawat, (2007) strategy involves establishing various capabilities of the organization to derive value through increased sales or liquidity of the company. Strategy is therefore a main functionality for any company seeking to grow in a competitive market. for Woolworths, strategy has involved introducing products and promotions that enable the company to appeal to the consumer more than the competitor. In a competitive market such as the Australian chain store market, Woolworths may be described to be winning over its competitors such as Coles through the establishment of promotions that entice the consumer to shop more at the store than in other supermarkets. First, Woolworth has introduced the Aussie trading cards which have set it apart. Arli et al., (2013) reports that the cards are responsible for the surge in sales by about 1.8 bill ion. Apart from focusing on the cards, the company also relies on other promotional ventures such as discounts on petroleum and advertisement to gain and retain consumers. Business Model Innovation Business model innovation involves the ability of the company operations to engineer change in its relations with the consumer and partners such as it delivers value and alleviates market challenges. Some of the primary aspects of business model innovation for Woolworths Australia has been to differentiate itself from its consumers in terms of its operations. Aspects of business model innovation have emerged after the threat of new entrants such as Aldi that have created a competitive environment for Australia Arli et al., (2013). The companies have affected Woolworths sales prompting the company to change its approach to the market and its internal structures. One of the innovative changes in the business model is that the company attempts to recapture its lost market in the foods and grocery business by introducing leases for smaller Woolworth stores across Australia and in other countries as well (Mortimer, 2001). In this, the company is able to sell grocery and food products unde r its own brand as a means of countering competitors. However, the company ensures that the leased stores deliver profitable turnover before acquiring them. References Arli, V., Dylke, S., Burgess, R., Campus, R. and Soldo, E., 2013. Woolworths Australia and Walmart US: Best practices in supply chain collaboration. Journal of Economics, Business Accountancy Ventura, 16(1). Ghemawat, P. 2007. Redefining global strategy: Crossing borders in a world where differences still matter. Harvard Business Press. Lindgardt, Z., Reeves, M., Stalk, G. and Deimler, M.S., 2009. Business model innovation. When the Game Gets Tough, Change the Game, The Boston Consulting Group, Boston, MA. Mortimer, D., 2001. Management employment relations strategy: the case of retailing. International employment relations review, 7(1), p.81. Piela, K., 2012. Nestl Corporate Social Responsibility CSR. Browser Download This Paper. Rezaeegiglo, R., Sadouni, A., Aref, F., Khotbesara, P. and Eslam, N., 2014. Review and Rating factors affecting the Deployment of (CRM) Customer Relationship Management at Nestle Company. International Journal of Academic Research in Business and Social Sciences, 4(1), p.539. Vander Schee, B.A., Aurand, T.W., Pickens, T., Ma, M. and Girap, A.R., 2011. NESTL: BRAND ALLIANCES IN DEVELOPING MARKETS. Journal for Advancement of Marketing Education, 18(1). Walters, D. and Rainbird, M., 2004. The demand chain as an integral component of the value chain. Journal of Consumer Marketing, 21(7), pp.465-475.