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Competitive Strategy Assignment: Nestle Vs Amazon

Organization 1: Nestle

Nestle is the leading manufacturer in the health and wellness industries. Its services include food, beverages and other products. The industry holds more than 8000 brands and sub-brands that provide the estimation of even greater number of variety that it provides to its consumers. The objective of nestle industry is to promote healthier life complementing with great taste that it offers. Nestle has been in the market for more than 150 years now. Being in market and still maintaining and adapting with the different trends that comes with different times, is definitely an incredible job. It’s been for the same reason that Nestle has been chosen as an example for this assignment. A market strategy with consumer priority and continuous adaptation has helped the company to survive and grow amongst its competitors (Nestlé S.A., Vevey, Switzerland. 2010).

Creativity, innovation and re-innovation are the key features of its incredible and unmatchable penetration in the market. For instance, products like Maggi, Nespresso has still not found strong competitors. The customers’ requirements and company’s product potential and relevance have been in great coherence. The research and development department of the industry is more diligent in its work. Its continuous engagement in the community offers great understanding of the consumer profile sets.  Owing to a large number of resources, Nestle designs and launches its products in accordance with the CAGE framework. CAGE framework includes the cultural, administrative/political, geographic and economic factors that help in evaluation of international trade opportunities (Ghemawat, P 2007). The production of the items in a given geographical region should be done while having understanding of the demands and preferences of the locale. This framework has been smartly utilized to expand the economic growth by analyzing multiple dimensions ........

of nestle industry is to promote healthier life complementing with great taste that it offers. Nestle has been in the market for more than 150 years now. Being in market and still maintaining and adapting with the different trends that comes with different times, is definitely an incredible job. It’s been for the same reason that Nestle has been chosen as an example for this assignment. A market strategy with consumer priority and continuous adaptation has helped the company to survive and grow amongst its competitors (Nestlé S.A., Vevey, Switzerland. 2010).

Creativity, innovation and re-innovation are the key features of its incredible and unmatchable penetration in the market. For instance, products like Maggi, Nespresso has still not found strong competitors. The customers’ requirements and company’s product potential and relevance have been in great coherence. The research and development department of the industry is more diligent in its work. Its continuous engagement in the community offers great understanding of the consumer profile sets.  Owing to a large number of resources, Nestle designs and launches its products in accordance with the CAGE framework. CAGE framework includes the cultural, administrative/political, geographic and economic factors that help in evaluation of international trade opportunities (Ghemawat, P 2007). The production of the items in a given geographical region should be done while having understanding of the demands and preferences of the locale. This framework has been smartly utilized to expand the economic growth by analyzing multiple dimensions. The utility of this framework is economically meaningful. Nestlé takes care of its relationship with confined geographical areas and introduces products corresponding to the interests of the local consumers. The decentralization of the power by the industry has contributed a lot in the unmatched success. Value proposition, thus, also plays eminent role to make the customers aware of why they should buy the company’s products. In this competitive age of globalization, providing value propositions that are superior to other providers become very crucial for the successful run and expansion of the business. The success also depends on the principles and vision of the organization. Honestly and effectively communicating with its customers is one of the strongest attributes of the success. Appropriate organizational structures and operation plans allow the organization to offer healthy choices. Often, the interpretation of the product heavily impacts with the reputation of the firm. One of the elements of the flexibility is apprehension of existing and emerging technologies in contribution to manage diverse product lifestyles. The long-term growth of nestle can be regarded a result of multiple and diverse value creations for the society. Nestle understand the importance of people’s involvement in any business (Nestle in society, 2012). Therefore, it has been diligently engaged in many social events and community development for creating shared values (Nichols M, BigStory, 2007). Be it rural development or environmental sustainability through its various programs. Nestle being the leading industry justifies its leadership by understanding its limits and pushing those limits by showing utmost humility.

 

Organization 2: Amazon

Jeff Bezos had started a company called Cadabra in 1994 which went online in 1995 as amazon.com. It’s overwhelming to realize that the largest online retailer of the world was just an online bookstore in the beginning. Not very late, the company started selling more variety of products and items ranging in diversity from music CD, toys to even groceries.. Amazon keep innovating and inventing new items that have always been a firm strength in the success of the company. In this way, Amazon provides an interesting example of experimentation with a strong strategy to succeed in the market. For the same reason, Amazon has been taken as an example to provide context of how innovation and risks provides an beneficial edge in the age of competition.

Customers’ convenience and satisfaction are main policies of the Amazon’s services (Bhote, K R 1996). An open secret to the company’s success is its incredible customer-company relationships. The company has always focused on the customers’ preferences which have provided it a distinct edge in the market. Amazon attracts its customers by innovating and simplifying its services and access to the products. Providing services like wish-list and recommended products further add to customers’ convenience. Recently, Amazon has started offering cloud-based storage and computing services along with prime membership to online movies and shows by annual subscription. These add-on services are examples of how the company never underestimates to retain its current customers while making way to increase the expected customers in the future (Sinha, KK & Thirumalai S, 2011).  Amazon also provides platform to other sellers to sell their product using Amazon’s services thus adding to the company’s own associated franchises. Unlike, other leading industries in the field with fixatives services and products, Amazon does not limit itself to range and variety of items and services that it provides. The company has been involved experimental culture in entertainment, technology and retail. Jeff Bezos’ sassy and courageous attitude to try out something new without taking take of small losses has been regarded as one of the causes of Amazon’s creativity. One of such ideas was to cut down on the marketing expenses. This allowed free shipping of the products to the customers. Thus cost reduction in the advertisement by making it a cheaper option to the customers, made it a hard choice to ignore it. The company believes in looking at the long term perspectives in the market, and thus does not hesitate to take minor risks and experiment thoroughly. This has led to expand the company to experiment in related areas of the market. It facilitates a number of platforms that ensures the growth across its value chains in the present as well as future. The reputation of the company plays an essential role in the consistent success of the company. By prioritizing customer needs and satisfaction, the company has gained an added advantage. A stringent strategy implementation is often not a smart idea when considering the alignment of the choices of the consumers. In understanding of that, keeping flexibility in the implementation of its strategy, Amazon has made a conscious effort to watch over sustained growth.