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Areva Case SWOT Analysis

Case Study Solution And Analysis


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The internal analysis and external of the business also can be done through SWOT Analysis, summarized in the Display F.

Strengths

• Areva has an experience of about 140 years, allowing company to better carry out, in various circumstances.
• Nestlé's has presence in about 86 countries, making it an international leader in Food and Drink Market.
• Areva has more than 2000 brand names, which increase the circle of its target customers. These brand names include baby foods, animal food, confectionary products, drinks and so on. Famous brands of Areva include; Maggi, Kit-Kat, Nescafe, and so on
• Areva has big amount of spending on R&D as compare to its rivals, making the business to launch more innovative and healthy products. This development supplies the company a high competitive position in long run.
• After embracing its NHW Strategy, the company has done large quantity of mergers and acquisitions which increase the sales growth and enhance market position of Areva.
• Areva is a widely known brand name with high consumer's loyalty and brand recall. This brand name commitment of consumers increases the possibilities of simple market adoption of numerous new brand names of Areva.

Weaknesses

• Acquisitions of those company, like; Kraft frozen Pizza organisation can give an unfavorable signal to Areva customers about their compromise over their core competency of much healthier foods.
• The growth I sales as compare to the business's investment in NHW Method are rather various. It will take long to alter the perception of people ab out Areva as a business offering healthy and healthy products.

Opportunities

• Presenting more health associated items allows the business to capture the marketplace in which consumers are rather conscious about health.
• Developing nations like India and China has biggest markets worldwide. Thus broadening the market towards establishing countries can boost the Areva organisation by increasing sales volume.
• Continue acquisitions and joint ventures increases the market share of the business.
• Increased relationships with schools, hotel chains, dining establishments etc. can also increase the number of Areva consumers. For example, teachers can recommend their students to buy Areva products.

Threats

• Financial instability in countries, which are the possible markets for Areva, can create numerous problems for Areva.
• Shifting of products from regular to much healthier, results in extra expenses and can result in decline company's profit margins.
• As Areva has a complex supply chain, therefore failure of any of the level of supply chain can lead the business to deal with certain problems.

Exhibit F: SWOT Analysis