Nescafe SWOT

Is a Presentation tool not analysis which is the famous misunderstanding

Strength & Weaknesses are extracted from the Company Capabilities & The
Opportunities along with Threats from Environmental Scanning

• Strength
- Strong Brand Portfolio offering a wider range of selections, it captured all types of
consumers.
- Strong Free Cash Flow
- Strong Reliable Suppliers
- Strong R&D department
- Strong & Highly Skilled work force
• Weakness
- Social Criticism
- Span of Control & Organizational Structure
- Import of Row Material
- Cannibalization
- Health Effect by Nescafe high Caffeine content

• Threats
- Competitors offer lower price products.
- Nescafe is not one of the dominant drinks in Egypt, specially in Upper Egypt.
- Devalue & Fluctuation of Egyptian Pound along with high customs.
- Shipping of row material could be affected due to Cofid-19.
- Expansion of the governmental and military business.
• Opportunities
- Cheap Manpower & Work force
- The presence of COVID-19 magnifies the demand in the markets.
- E-commerce and Online Shopping.
- Increase in coffee market size.
- Expansion of Giant Retailers.
 TOWS MATRIX

• S-O :- Actions for Strategic Choices

• S-T :- Use of Success to minimize the threats

• W-O :- Use of Opportunities to address weaknesses

• W-T :- Defensive Actions

 STRENGTHS WEAKNESSES
 

Nescafe shall use the cheap manpower in new production lines Reduce the long span of organizational structure
and reduction of cost control by investing in E-Commerce & Online
shopping
Nescafe shall produce other products to target different segment
of market Importing from nearest Europe Country using
OPPORTUN shortest route to Egypt

ITIES Increase the market share for new substitute &

Nescafe Shall invest to create Online & E-Commerce platform or Complements products to avoid cannibalization for
to make alliance with the famous platforms Nescafe
Invest in devolving new Nescafe products with
Nescafe shall penetrate new markets
caffeine free to meet the demand of healthy
consumption customers

Expand in the production of small & low cost Nescafe items Reduce the cost by using efficient operations to
considering economic conditions maintain the barriers for new entrance

Create new marketing campaigns & methods to increase Nescafe Continue of developing new products to maintain
market share against indirect competitors market position as cost leader
THREATS Invest in creating new shipping company for Nestle itself or JV Create strong stock of row material to avoid any
with the famous shipping companies such as Maersk / Hapag- production stoppage due to the delay of row material
Lloyd (Backward Integration) shipments
Create marketing anti Campaigns to show Necafe
social charity responsibilities to change the image of
Create a contingency plan with saving a reserve of balance current illegal misbehaviors (Child Labors, Water
currencies Controversy)