Written in 2006; 1,042 words; 4 sources; APA; $ 36.95
Paper Summary:
This paper takes a look at the Nestle Corporation, said to be one of the multinationals whose presence in several industries rather than just one is equivalent to a complete vertical or horizontal diversification. According to the paper, Nestle has diversified from the traditional food-related products, such as dairy products, breakfast cereals or chocolate and ice cream, into pet care, childcare (baby foods especially), wellness and nutritional solutions, as well as beverages and bottled waters.
From the Paper:
"Diversification and expansion was achieved both by acquisitions, as was the case with the American food producer Carnation, in the 1980s, and by strategic partnerships with other companies. An example in this sense was Nestle's partnership with Coca Cola in the early 1990s, an alliance in ready-to-drink teas and coffees. The alliance meant that Nestle could benefit from Coca Cola's worldwide bottling system and expertise in prepared beverages."
"The company sustains and encourages a constant product portfolio diversification and expansion through two means: innovation and renovation. What this means is that the company is constantly both reactive to the needs and requirements of its targeted groups of consumers and proactive, by innovation, to create and implement new consumer trends on the market. "
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