Nestles Corporate Generic Competitive Strategy Free Essay Example, 5500 words

Market leaders in the developed world, such as Nestle, sets out to exploit the opportunities in the emerging market and expect to repeat their successes in mature ones. Sustainable growth has become a corporate objective. However, Nestle does not treat emerging markets similarly with developed ones. Emerging markets requires a long term perspective that considers financial and economic turmoil. The idea of focusing on the emerging markets as a solution to keep maintaining or even increasing the growth results has been a common long term strategy for many large consumer product companies. The idea makes sense because the western markets have become mature in the last few decades and most successful companies have had to contend with reduced selling price margins and hence lesser profits. In other words, such markets are intensely competitive and the companies have to make huge investments in increasing economies of scale in order to reach more number of customers. In addition, eme rging markets offer several new challenges and scope of extremely high growth, especially for early-bird companies. An emerging market has been defined by Luo as a country in which its nation s economy grows rapidly, its industry is structurally changing, its markets promising but volatile, its regulatory framework favours economic liberation and the adoption of a free-market system, and its government is reducing bureaucratic and administrative control over business activities (2002:5). We will write a custom essay sample on Nestles Corporate Generic Competitive Strategy or any topic specifically for you Only $17.96 $11.86/page Nayak in his book reiterated the importance of emerging markets, by citing global equity valuations, according to which emerging markets have an expected growth rate of 16%, higher than the US, Europe and Japan markets.