Nestle SA versus Kraft Foods

Paper Summary:

This document discusses the strategic character of Nestle S.A. as the world's largest purveyor of food and drink products. Kraft Foods is its primary rival in most of the world's markets and these two competitors are currently fighting for market penetration in China and India in the hot drinks segment of the beverage industry. Nestle is a multi-domestic oriented company and it should adopt a competitive pricing strategy in emerging markets in order to out maneuver its competition.

From the Paper:

"The global hot drinks market has been a perennial bright spot in the food service industry for many years and this trend is set to continue into the foreseeable future. The primary characteristics of the global hot drinks market consist of: 2.3% growth in 2005 estimated to value in excess of $55b, forecasted growth over the next five years, coffee is the dominant market segment with 67.9% of the market's total value, Europe is the market's largest region, supermarkets and hypermarkets dominate the distribution channels in this market, and Nestle S.A. is the dominant competitor (Global). The global hot drinks market primarily consists of hot coffee, hot tea, as well as a slew of other products traditionally sold and/or served hot or warm. These products consist of a host of coffee related products, such as lattes, as well..."

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