The Analysis of Nestlé’s Oversea Strategies

Abstract

As one of the Global 500 companies, Nestlé plays an active role in the food consumer product industry. The founder, Henri Nestlé invented a milk supplement “Farine Lactée Nestlé” in 1867, this company started its legend on healthy and user-focused products, it also developed innovative brands through time such as Nescafé and Maggi. Nestlé operated in 83 countries in 2022, when it entered oversea markets, this firm also kept a careful attitude toward Corporate Social Responsibility (CSR). This research highlights Australia as Nestlé’s ideal host country, their relationship began in 1908. In Australia, Nestlé has opportunities from the market competition, this firm kept diversity in product categories and this characteristic helps Nestlé to win more market shares. On the opposite side, nationalism threatens this firm since the pandemic because it built barriers between Nestlé and domestic consumers. As its classic strategy, Nestlé absorbs domestic culture to create specific goods and services. The company also use the entry mode of franchising for the Australian market, which brings fewer monitoring costs and revenues to Nestlé. As suggestions, this firm can combine its brands with technologies, this decision will help Nestlé to get higher market shares in Australia.