AMITY UNIVERSITY

AMITY BUSINESS SCHOOL

GREATER NOIDA

BUSINESS POLICY AND STRATEGIC MANAGEMENT

Session: -2022-2025
COURSE CODE- STRA302

SUBMITTED BY: SUBMITTED TO:

KHUSHI LOHANI MS. SAILAJA BOHARA
BBA 4TH SEMESTER
ENROLLMENT No.- A40806422012
PORTER’S COMPETITIVE STRATEGIES OF NESTLE

As a multinational food and beverage corporation, Nestlé uses a

variety of business techniques to stay competitive. Based on Porter's
four competitive strategies, let's examine Nestlé's strategy:-
1. COST LEADERSHIP-
• Historically, Nestlé has concentrated on becoming the industry
leader in terms of cost. This involve taking advantage of economies
of scale, reducing production costs, and improving supply chain
effectiveness.
• The corporation makes significant investments in Research and
Development to optimise its manufacturing processes, boost
productivity, and save expenses.
• In order to have access to affordable raw materials and distribution
channels, Nestlé frequently participates in strategic alliances and
collaborations.

2. DIFFERENTIATION-
• Nestlé prioritises product differentiation in order to provide
distinctive products within the market. This involve creating and
promoting goods that are unique in terms of their flavour, quality,
branding, and nutritional content.
• The corporation offers a wide range of products, including well-
known brands like Nestlé Pure Life, Nescafé, Kit Kat, and Maggi that
are found in many different categories.
• These goods are unique in order to cater to the particular
requirements and tastes of various market groups.

3. COST FOCUS-
• Although its primary strategy is to target a large market, Nestlé also
uses components of cost emphasis in particular product lines or
sectors.
• For example, it could target customers who are budget conscious
with specific product lines where cost effectiveness is essential.
 • In order to provide more economical solutions without sacrificing
quality within particular market groups, Nestlé may decide to
streamline its operations and supply chain.

4. DIFFERENTIATION FOCUS-
• Additionally, Nestlé uses differentiation emphasis by customising
some items to satisfy the particular needs or tastes of particular
customer segments.
• Nestlé's health science business, for instance, specialises in creating
customised nutrition solutions for those with particular health
needs or diseases.

In conclusion, Nestlé uses a mix of distinctiveness and cost

leadership tactics throughout its wide range of products. The firm
wants to establish a strong brand presence, innovate its products,
and cut costs in order to gain a competitive edge. Although the main
focus is on a large market, several business segments also exhibit
features of cost focus and differentiation focus.