Essay - Case Study: Nestle Company with Reference to the Nestle Case...


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Case Study: Nestle Company

With reference to the Nestle case study, provide one example, which clearly illustrates a link between topics or concepts drawn from at least two pre-requisite modules.

Nestle's success in the food stuffs industry has been due, in large part, to the value adding activities the *****ganiz*****ion has developed, in the form of a value chain, which is one concept covered in ***** pre-requisite *****. Not only have they mastered this concept within their own organization, but have also extended it beyond their company ***** include their supply chains and distri*****ion ne*****rks. China is a perfect ***** ***** ***** *****ful str*****tegy.

More than a decade of talks found Nestle finally invited to set up shop in China. Their powdered milk and infant formula plant was opened in 1990. Although the region ***** still relatively poor, Nestle knew that these basic products would be most applicable to the local citizen's needs, and once economic improvement matured, ***** citizens were found to have more disposable income, Nestle would then ***** able to expand their product line to *****s beyond essential food items. Yet it was discovered that the infrastructure of the ***** would not support the necessary delivery of milk are the distribution of the final products.

***** understood ***** to capture ***** value in both the supply cha***** and in the ***** network, and therefore add value ***** the entire enterprise, someth*****g had to be d***** about the ***** of ***** region. As such, they establishe***** what would become known as milk roads, between 27 villages, located around the *****, ***** collection points for *****. This allowed the farmers ***** bring their milk more quickly to the ***** centers. ***** convenience, coupled with Nestle's prompt payment ***** the farmers ***** their product, encouraged the farmers to produce even ***** milk and allowed Nestle to increase production from 316 tons in 1990 to more ***** 10,000 ********** four years later.

***** *****ition, this newly built infrastructure was useful for distribution as well. Finished product could now be delivered to the villages with greater ease and efficiency than previously. This allowed for reduced distribution costs, thanks ***** the new infrastructure. This commitment to adding value throughout ***** ********** has given Nestle a competitive advantage in *****, that it otherwise would not *****.

A second concept covered in the pre-requis*****e modules that can ***** illustrated by an example ********** in ***** ***** study is that ***** market share. Although in some geographic regions, ***** certain market segments, Nestle holds a considerable market share presence, in ***** areas, such as Japan, Nestle h***** not been able to adapt quickly enough and has lost valu***** market share ***** the process.

***** had become comfortable as the dominant coffee product in Japan, ***** such when the cold canned coffee market opened up, Nestle dismissed ***** idea, secure in its market share lead. As such, they did ***** enter the canned coffee *****. However, Coca-Cola saw the potential and developed a product n*****med Georgia that

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