Nestl Essay Example | Topics and Well Written Essays - 2500 words

Nestl - Essay Example As a result business organizations across nations are breaching political and geographical boundaries in an attempt to grab a share of the market. The emergence of developing nations has created numerous opportunities for business organizations so as to expand into different markets. This has triggered a wave of competition among the business organizations to garb each other’s market share. International expansion also poses numerous challenges for multinational firms which have operations in different regions as markets in different nations have distinct consumer tastes and preferences apart from large scale variations in macro economical and political environments. The present study would deal with the aspect of international expansion and its effects on the product and marketing and product mix of the organization. The organization selected for the study is Nestle. The choice of the organization assumes significance considering the fact that the firm has its markets in nume rous regions and has a large range of product mix and categories that cater to many segments of the consumers across the world. About the Company Nestle is the global leader in the food and beverage industry segment and has a significant presence across numerous consumer markets across the globe. The origins of the company date back to the year 1866 when Henri Nestle founded the organization in Vevey Switzerland. The company has since then grown up a long way to emerge as an organization which boasts of its business presence in almost all the major markets of the world with a profit margin of CHF 108 billion providing employment opportunities to about 280,000 individuals. The company’s mission is to provide best quality and highly nutritious food to individuals across the globe (Nestle, 2011). Opportunities and Challenges of International Marketing International expansion has given rise to a new term called ‘Multinational Corporation’. The word multinational in b usiness parlance implies an organization in which the marketing related tasks are formulated in numerous nations and are coordinated across all the markets where the firm operates (Onkvisit & Shaw, 2008, p.5). International expansion throws numerous opportunities and challenges before an organization. On one hand it opens up numerous opportunities in the form of new markets with good potential. Saturation of a particular product line can also be handled by a firm if it introduces the product in newer markets. It also reflects numerous challenges for an organization as large scale market fluctuation and adaption with the local culture and sentiments play a major role in the success of firms in the international markets (Czinkota & Ronkainen, 2007, p.10). Figure 1: The Process of International Marketing (Source: Philips, Doole & Lowe, 1994, p.28) The figure above shows the process of international marketing in multinational organizations. The figure shows numerous challenges such as a ttitude based barriers, unsolicited orders, lack of willingness as well as time frame based commitment to the