Nestle
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Nestle (Brief Overview)
Unconventional methodology of extension to other countries in its early years.
Nestle made a name for itself with an experiment involving a child who was intolerant to his mothers milk or any other substitutes. Nestle not only saved the babys life but achieved the feat with a formula developed with a formula that included lactose as one of its key ingredients.
Several acquisitions along Nestles timeline would further accent its touch in its major revolution in the food industry.
CASE1 : IMPORTANT FACTS OF THE CASE.
Nestles commencement in 1866 by the Swedish pharmacists and further expansion into Europe and subsequently the rest of the world
Nestles landmark acquisituions.
Nestles first mover strategy. The writer makes a comparison to enterprises during the industrial revolution. These companies had to invest in infrasture that are almost negligible in todays
commerce activities, to start off production. Nestle had to engage in activities with a potential high risk such as their milk collection process in china.
Its broad based globalization that attracted 99% of its revenue from outside of its home country in a little over a century
The employment of tactics and strategy in a saturated market like Europe in the late nineties. ( I.E. potential to find an emerging market way before it gets prosperous. Responses to income levels)
Nestle focused more on customization instead of the then resounding and domineering globalization. They believed in customizing a product to suit a local niche one market at a time. That way new product failure rate remained minimal and New product Development grew significantly. This process is referred to as local adaptation by the writer.
CASE2 : With regards to emerging markets
Nestle has always pioneered in being the first mover into a new market.
Aligned with the vision of its proprietor they configure new products to their best fit assumption and then introduce it to a unsuspecting market.
After having a substantial leverage on the market, subsequent growth in the market would also mean growth for the subsidiary market share of nestle.
Examples of such products experimented with include tofu, noodles and of NestlД©s favorite, condensed milk.
Nestle