SWOT ANALYSIS ON PUBLIC SECTOR

COMPANIES

BY Raghav Mishra

TO Ujjwala Rathod
Introduction

MONDELEZ INTERNATIONAL

NESTLE

Acknowledgment

Conclusion

Bibliography
What is a SWOT analysis?
A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats related to a business, project, or organization. It helps to identify
both internal factors (strengths and weaknesses) and external factors (opportunities and
threats) that can impact the success of an entity or initiative.

Components of a SWOT Analysis:

1. Strengths
These are the internal attributes and resources that give the organization a competitive
advantage. They are areas where the organization excels, and can include:
○ Strong brand reputation
○ Financial stability
○ Skilled workforce
○ Access to capital
○ Unique technology or products
2. Weaknesses
These are the internal factors that could hinder the organization's performance or put it
at a disadvantage. Identifying weaknesses helps an organization recognize areas where
improvement is needed. Examples of weaknesses might include:
○ Limited product offerings
○ Weak brand recognition in certain markets
○ Lack of innovation
○ Poor financial health
○ Inefficiencies in operations
3. Opportunities
These are external factors or trends that the organization can exploit to its advantage.
Opportunities typically arise from the business environment, market shifts, or changes in
technology, demographics, or consumer preferences. Examples include:
○ New markets or customer segments
○ Changes in regulations that favor the business
○ Emerging technologies
○ Strategic partnerships or alliances
○ Changing consumer trends (e.g., increased demand for healthier products)
4. Threats
These are external factors that could pose risks to the organization's success or ability to
grow. Threats are typically challenges that stem from the competitive environment,
market trends, or regulatory issues. Examples of threats include:
○ Economic downturns
○ Increased competition
○ Changing government regulations
○ Supply chain disruptions
○ Negative shifts in consumer behavior (e.g., preference for alternatives)
SWOT Analysis of Mondelez International
Mondelez International is a global leader in the snack food industry, with a wide range of brands
such as Oreo, Toblerone, Ritz, and Trident. The company operates in more than 150 countries,
offering products across the categories of biscuits, chocolate, gum, candy, beverages, and
packaged food. Here's a SWOT analysis to examine the company's strengths, weaknesses,
opportunities, and threats.

Strengths
1. Strong Brand Portfolio: Mondelez owns iconic and globally recognized brands such as
Oreo, Toblerone, Ritz, and BelVita. These well-established brands create a strong
competitive advantage and customer loyalty.
2. Global Presence: With operations in over 150 countries, Mondelez has a strong global
footprint, allowing it to tap into a vast and diverse customer base. Its widespread
distribution network ensures product availability worldwide.
3. Innovation & Product Diversification: Mondelez continually invests in innovation,
launching new flavors, formats, and products that cater to evolving consumer
preferences. The company also leverages its R&D capabilities to adapt to trends like
healthier snacks and sustainable packaging.
4. Market Leadership in Key Categories: Mondelez is a market leader in biscuits,
chocolate, and gum, making it a key player in the global snack food industry. Its market
leadership gives the company economies of scale, higher bargaining power with
suppliers, and a strong position in retail negotiations.
5. Sustainability Initiatives: Mondelez has made strides in sustainability with its Cocoa
Life program and commitments to reducing environmental impacts. It is working towards
sourcing 100% of its cocoa sustainably and reducing carbon emissions, which enhances
its brand reputation among eco-conscious consumers.

Weaknesses
1. Dependence on Mature Markets: A significant portion of Mondelez's revenue comes
from developed markets such as North America and Western Europe. These markets
are experiencing slow growth, meaning the company faces challenges in sustaining
growth without more aggressive penetration into emerging markets.
2. Health Trends and Perception Issues: As consumers increasingly shift toward
healthier eating habits, Mondelez faces scrutiny over the healthiness of its products,
many of which are high in sugar, fat, and salt. This could lead to declining demand for
some product lines or increased regulatory pressure.
 3. Product Recalls and Quality Issues: Like any large food company, Mondelez has
faced occasional product recalls, which can damage its reputation and consumer trust. A
negative incident can affect both short-term sales and long-term brand perception.
4. High Dependency on Third-Party Suppliers: Mondelez relies on various suppliers for
raw materials like cocoa, sugar, and wheat. Price fluctuations or disruptions in the supply
chain can impact costs and product availability.

Opportunities
1. Emerging Markets: There is significant growth potential in emerging markets such as
Asia, Latin America, and Africa. Rising disposable incomes and urbanization in these
regions present opportunities for Mondelez to expand its customer base and introduce
premium or culturally relevant products.
2. Health-Conscious Product Development: Mondelez can capitalize on the growing
trend toward healthier snacks by expanding its portfolio of organic, low-sugar, gluten-
free, and plant-based products. Developing offerings that cater to wellness trends can
help the company appeal to health-conscious consumers.
3. E-Commerce Growth: Online shopping continues to grow, and Mondelez has the
opportunity to leverage digital channels to reach new customers and enhance direct-to-
consumer sales. Investing in e-commerce and digital marketing could help Mondelez
connect with younger, tech-savvy consumers.
4. Acquisitions and Partnerships: Mondelez could pursue strategic acquisitions of
smaller brands or emerging companies that align with current trends (e.g., plant-based
snacks or health-focused products). This could complement and diversify its product
portfolio.
5. Sustainability and Ethical Sourcing: Continuing to strengthen its commitment to
sustainability through ethical sourcing, reducing environmental impact, and promoting
fair trade can enhance Mondelez's brand image. With increasing consumer demand for
sustainable products, these initiatives can help build stronger brand loyalty.

Threats
1. Intense Competition: Mondelez faces fierce competition from both multinational giants
(such as Nestlé, PepsiCo, and Mars) and regional/local players in the snack food
industry. Intense competition can lead to price wars, reduced profit margins, and a
constant need for innovation.
2. Regulatory Pressure: Increased regulation on food products, particularly concerning
health-related issues such as sugar content, food labeling, and marketing to children,
could impact Mondelez's operations. New taxes on sugary snacks, for example, could
reduce demand for some of its products.
3. Fluctuating Raw Material Prices: Mondelez's reliance on key raw materials like cocoa,
sugar, and wheat makes it vulnerable to price volatility. Economic instability, climate
change, and geopolitical tensions can cause supply chain disruptions and increase input
costs.
4. Changing Consumer Preferences: Consumer tastes are shifting towards healthier,
fresher, and more natural products. While Mondelez has made strides with health-
 conscious offerings, it faces ongoing pressure to innovate and stay ahead of rapidly
changing preferences.
5. Supply Chain Disruptions: The global supply chain remains vulnerable to disruptions,
whether due to natural disasters, geopolitical instability, or pandemics. A disruption in
the supply chain could impact Mondelez’s ability to deliver products on time and
maintain profitability.

Conclusion
Mondelez International is a leading player in the global snack food industry, benefiting from
strong brand equity, a vast international presence, and a commitment to innovation. However, it
must address challenges related to health trends, dependency on mature markets, and
competitive pressures. By capitalizing on emerging market growth, health-conscious trends, and
e-commerce, the company can position itself for continued success while mitigating the risks
associated with regulatory changes, supply chain disruptions, and fluctuating raw material
prices.

SWOT Analysis of Nestlé

Nestlé is one of the world’s largest food and beverage companies, known for its wide range of
products, including dairy, nutrition, chocolate, coffee, bottled water, and pet food. It operates in
over 190 countries and has an extensive portfolio of well-known brands such as Nescafé,
KitKat, Gerber, and Perrier. Below is a detailed SWOT analysis of Nestlé:

Strengths
1. Strong Brand Portfolio:
Nestlé owns some of the world’s most recognizable brands across various product
categories, including Nescafé, Maggi, KitKat, Nestlé Pure Life, and Gerber. Its diverse
portfolio appeals to a wide range of consumer needs, from nutrition and health to
indulgent products.
2. Global Presence:
With operations in more than 190 countries, Nestlé has a vast global footprint. This
extensive reach allows it to capitalize on global market opportunities, access diverse
consumer bases, and mitigate risks by operating across multiple markets.
3. Strong Financial Performance:
Nestlé consistently demonstrates solid financial results, with revenue exceeding CHF 90
billion annually. Its strong financial position allows for reinvestment in innovation,
acquisitions, and strategic initiatives that fuel future growth.
4. Research and Development (R&D):
Nestlé invests heavily in R&D to develop new products and improve existing ones. This
focus on innovation ensures that Nestlé can meet changing consumer preferences, from
 healthier products to sustainable packaging, and maintain a competitive edge in the
marketplace.
5. Commitment to Sustainability:
Nestlé has made significant strides in sustainability, aiming for zero environmental
impact by 2030. Its initiatives include reducing carbon emissions, using sustainable
sourcing practices, and tackling plastic waste through improved packaging and recycling
efforts.

Weaknesses
1. Over-reliance on Developed Markets:
While Nestlé has a global presence, a large proportion of its revenue comes from
developed markets such as North America and Europe. Growth in these markets has
slowed, and this reliance on mature regions makes Nestlé vulnerable to market
saturation.
2. Product Health and Safety Issues:
Nestlé has faced controversies and product recalls in the past, particularly related to
issues such as health concerns (e.g., high sugar content in products like chocolate) and
food safety. These challenges can damage the company's reputation and consumer
trust, especially as consumers become more health-conscious.
3. Complex Organizational Structure:
Nestlé’s size and global operations mean it has a highly complex organizational
structure. This can lead to inefficiencies, difficulty in decision-making, and slower
responses to market changes. Managing its vast portfolio of products and regions can
also make it difficult to maintain consistency in brand messaging.
4. Criticism Over Water Resources:
Nestlé has faced criticism and legal battles over its bottled water business, particularly
regarding the extraction of water in drought-prone areas. Critics argue that this
undermines local communities' access to clean water and contributes to environmental
degradation.

Opportunities
1. Growth in Emerging Markets:
Emerging markets, especially in Asia, Africa, and Latin America, represent a significant
opportunity for Nestlé. With rising incomes, urbanization, and changing diets, Nestlé can
expand its market share by introducing affordable and locally relevant products.
2. Health and Wellness Trends:
As consumers increasingly prioritize health and wellness, Nestlé has an opportunity to
expand its portfolio of healthier products. This includes items with reduced sugar, plant-
based alternatives, organic products, and functional foods that address specific health
concerns (e.g., gut health, immunity).
3. E-commerce Expansion:
The growth of online shopping provides Nestlé with an opportunity to enhance its direct-
to-consumer channels and e-commerce capabilities. Nestlé can leverage digital
 platforms to target a younger, tech-savvy consumer base and improve online sales of its
products.
4. Sustainability and Ethical Practices:
As consumer demand for ethical and sustainable products grows, Nestlé has an
opportunity to further capitalize on its sustainability efforts. Initiatives such as responsible
sourcing, reducing plastic waste, and promoting plant-based diets (e.g., through the
launch of plant-based products) align with global sustainability trends.
5. Strategic Acquisitions:
Nestlé can continue to expand its portfolio through acquisitions, particularly in emerging
categories like plant-based foods, healthy snacks, and functional beverages. This can
diversify its product offerings and position it well for future growth in high-demand
segments.

Threats
1. Intense Competition:
Nestlé faces fierce competition from both global food giants like PepsiCo, Coca-Cola,
and Unilever, as well as regional and local brands. This intense competition often results
in price pressure, reduced profit margins, and a constant need for innovation to stay
ahead in the market.
2. Regulatory Pressure and Compliance:
The food and beverage industry is highly regulated, and Nestlé must comply with varying
food safety, health, and environmental regulations across different markets. Any
changes in regulations or stricter standards can increase operational costs and reduce
profitability.
3. Raw Material Price Volatility:
Nestlé depends on various raw materials, such as cocoa, sugar, coffee, and dairy. Price
fluctuations and supply chain disruptions caused by factors like climate change,
geopolitical tensions, or natural disasters can impact the cost of production and profit
margins.
4. Changing Consumer Preferences:
As consumer preferences shift toward healthier and more sustainable products, Nestlé
must continue to adapt its offerings to meet these changing demands. Failure to
anticipate or respond to these trends could lead to decreased consumer loyalty and
sales, especially among younger generations.
5. Economic Instability and Global Recession Risks:
Global economic uncertainties, such as economic slowdowns, inflation, or recessions,
could affect consumer spending power and demand for Nestlé's products. Consumers
may cut back on discretionary spending or opt for cheaper alternatives during tough
economic times.

Conclusion
Nestlé is a powerful global leader in the food and beverage industry, benefiting from a strong
brand portfolio, financial strength, and a deep commitment to sustainability and innovation.
However, the company must address challenges such as its over-reliance on developed
markets, health-related product concerns, and intense competition. By capitalizing on growth
opportunities in emerging markets, the health and wellness trend, and sustainability initiatives,
Nestlé can continue to grow and maintain its competitive edge. However, it must also navigate
risks such as changing consumer preferences, regulatory challenges, and economic instability
to sustain long-term success.

Acknowledgment

I would like to thank my teacher, Ujwala Rathod and principal Viraj

Naidoo for their constant guidance, valuable insights, and
encouragement throughout the project. Their expertise has helped me
gain a deeper understanding of the subject matter.

I am also grateful to my parents for their support, motivation, and

resources that allowed me to complete this project with diligence and
enthusiasm
Lastly, I appreciate all the sources and references that provided
valuable information, helping me research and analyze the topic
effectively.
Thank you
Bibliography

https://www.techtarget.com/searchcio/definition/SWOT-analysis-
strengths-weaknesses-opportunities-and-threats-analysis

https://canvasbusinessmodel.com/blogs/growth-strategy/
mondelez-international-growth-strategy