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Chain Stores 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 Exhibition F.

Strengths

• Chain Stores has an experience of about 140 years, enabling company to better perform, in numerous scenarios.
• Nestlé's has existence in about 86 countries, making it a global leader in Food and Drink Industry.
• Chain Stores has more than 2000 brand names, which increase the circle of its target customers. These brands include baby foods, family pet food, confectionary items, beverages etc. Famous brand names of Chain Stores consist of; Maggi, Kit-Kat, Nescafe, etc.
• Chain Stores has large quantity of spending on R&D as compare to its competitors, making the company to release more ingenious and nutritious items. This innovation offers the business a high competitive position in long run.
• After embracing its NHW Strategy, the company has actually done big quantity of mergers and acquisitions which increase the sales growth and enhance market position of Chain Stores.
• Chain Stores is a widely known brand with high consumer's commitment and brand recall. This brand name loyalty of customers increases the possibilities of simple market adoption of numerous new brand names of Chain Stores.

Weaknesses

• Acquisitions of those business, like; Kraft frozen Pizza company can give an unfavorable signal to Chain Stores customers about their compromise over their core proficiency of healthier foods.
• The development I sales as compare to the company's investment in NHW Strategy are rather various. It will take long to change the perception of individuals ab out Chain Stores as a business selling healthy and healthy items.

Opportunities

• Introducing more health associated products allows the business to record the market in which customers are quite conscious about health.
• Developing nations like India and China has largest markets on the planet. Broadening the market towards establishing nations can enhance the Chain Stores organisation by increasing sales volume.
• Continue acquisitions and joint ventures increases the marketplace share of the business.
• Increased relationships with schools, hotel chains, restaurants etc. can also increase the variety of Chain Stores consumers. For instance, teachers can advise their trainees to buy Chain Stores items.

Threats

• Financial instability in countries, which are the possible markets for Chain Stores, can produce several problems for Chain Stores.
• Shifting of items from typical to much healthier, causes additional costs and can result in decrease business's profit margins.
• As Chain Stores has an intricate supply chain, for that reason failure of any of the level of supply chain can lead the business to deal with certain issues.

Exhibit F: SWOT Analysis