Ansoff Matrix Example Nestle—Nestle Ansoff Matrix Analysis


What is Ansoff Matrix?

The Ansoff Matrix is a tool that helps businesses plan how to grow. It shows four main ways a company can expand and increase its market share. The four strategies are:

  • Market Penetration
  • Market Development
  • Product Development
  • Diversification

Each strategy has its own risks. The Ansoff Matrix helps business leaders think about the risks and benefits of each option before making a decision.

In the text to follow, we will analyze Nestle Ansoff Matrix after a brief history of the company.

Brief History of Nestle

Nestlé S.A. is a Swiss multinational company that processes food and drinks. It is based in Vevey, Switzerland. Since 2014, it has been the largest publicly-held food company in the world by revenue. In 2023, Nestlé was ranked 50th on the Forbes Global 2000 list.

Nestlé produces a wide range of products, including coffee, tea, candy, bottled water, baby food, dairy, ice cream, frozen foods, cereals, snacks, pet food, and medical food.

Some of its major brands are Nespresso, Nescafé, Kit Kat, and Nesquik. The company operates 447 factories, is present in 189 countries, and employs around 339,000 people. Nestlé also holds a significant share in L’Oréal, the largest cosmetics company.

Nestlé was founded in 1905 after merging two companies. Over the years, it expanded through acquisitions, including Crosse & Blackwell, Findus, and Gerber. However, the company has faced criticism over its marketing practices and environmental issues.

Nestle Ansoff Matrix Analysis

Let’s have a look at Nestle Ansoff Matrix analysis.

Image Source: Boardmix.com

·       Market Penetration

For Nestlé, this strategy means selling more of its current products in the markets it already serves. Nestlé has been around for 150 years and operates in 188 countries. It has many products, so it can increase sales through marketing campaigns and special discounts.

·       Market Development

Another option for Nestlé is to enter new markets. Although it is already in many countries, it could focus on reaching new groups of customers. For example, it could target people who follow vegan or plant-based diets by creating products that fit their needs.

·       Product Development

Nestlé could also create new products to meet changing customer preferences. For example, it could offer healthier versions of its popular products or create new items for specific diets. It could also introduce unique flavors in its existing products.

·       Diversification

The last strategy is diversification. Nestlé can expand into new areas. For example, it has already entered the health and wellness market by buying a company called Atrium Innovations.

Also, read about Tesla Ansoff Matrix.

ShaharYar Ahmad

ShaharYar Ahmad is a business graduate and a professional SEO content writer who has been working since December 2019. Currently, he is a Top-Rated Freelance Content Writer at Upwork (The biggest freelancing platform in the world). He mainly writes about marketing, finance, business, law, advertising, Saas, M&As, corporate governance, real estate, and Fintech. He has worked with International Saas and Fintech/Payment processing companies (as a freelance content contributor and ghostwrites blog posts). ShaharYar has been creating content for Marketing Tutor since January 1, 2021 and Orchid Homes Real Estate since January 2023.

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