When our ancestors exchanged farm life in favor of factory life in the shift from an agricultural world to an industrial world, life changed fundamentally for hundreds of millions of people. The ve...
Via jean lievens
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Abey Francis's curator insight,
March 18, 2013 11:46 PM
Nestle is one of the oldest of all multinational business company. Its operate food basis business around the world. In order to satisfy both developed markets and developing markets. Nestle adopt the transnational strategy that contain the element of global standardization strategy and localization strategy to operate its company by the 21st century. By using the transnational strategy, Nestle enjoys the low cost through economies of scale and offers different product to different markets with high local responsiveness in order to defend its old markets in the developed markets and look for potential growth in emerging markets.
Nestle use the localization strategy to operation its business in the developing world where Eastern Europe, Asia, and Latin America to optimize ingredients and processing technology to local conditions and then using a brand name resonates locally as the cultural habits difference in different nations.
Customization rather than globalization is the key to Nestle's strategy in emerging. For example, Nestle has taken as much as 85 percent of the market for instant coffee in Mexico, 66 percent of the market for powdered milk in the Philippines, and 70 percent of the market for soups in Chile. Besides, Nestle hired local singer to promote its products in Nigeria, the organization of a delivery system to increase efficiency in China, and using local material and focusing on local demand such as make ice cream in Dubai.
Nestle focus on increasing profitability by customizing the firm' products so that it provides a good match to tastes and preference in different nation.
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