Over the years, the food company Nestle’s Maggi Noddles which are high market share with low growth markets. The company with a market share of 80-85 %, Maggi Noddles holds a very strong hold in the market and have high customer loyalty. The product requires very less investment to maintain its market share and fight off any competition. In the case of Nestle, Nestle’s Mineral Water and Nestle’s Nescafe Coffee fall in the high market share in high growth industry. Growing healthier lifestyle trends and emerging markets have prompted the brand to invest large amounts of investments in order to differentiate the bottled water brands from competitors in mature markets and grow brand awareness in emerging markets. There are products that formulate a part of the industry that is still in the phase of development, yet the organization has not been able to create a significant position in that industry. The small market share obtained by the organization makes the future outlook for the product uncertain, therefore investing in such domains is seen as a highrisk decision. With increasing competition and growing need to consume healthy products among consumers, Nestle’s Milk products and Nutrition requires significant investment from the brand to maintain and grow its market share. Nestle’s Chocolates and confectionaries is another business unit at high competition and small market share of the product in the industry. Nestle’s Milo was launched as chocolate and malt powder for milk and water, were perceived to have the potential to grow but however failed to create magic due to the slow market growth. Failure to deliver the expected results makes the product a source of loss for the organization, propelling the management to withdraw future investment in the venture. Since the product is not expected to bring in any significant capital, future investment is seen as a wastage of company resources. iv. Based on case study 2, analyse company portfolio by comparing each product on their market growth and market share using Boston Consulting Group (BCG) matrix?
Over the years, the food company Nestle’s Maggi Noddles which are high market
share with low growth markets. The company with a market share of 80-85 %, Maggi
Noddles holds a very strong hold in the market and have high customer loyalty. The
product requires very less investment to maintain its market share and fight off any
competition.
In the case of Nestle, Nestle’s Mineral Water and Nestle’s Nescafe Coffee fall in
the high market share in high growth industry. Growing healthier lifestyle trends and
emerging markets have prompted the brand to invest large amounts of investments in
order to differentiate the bottled water brands from competitors in mature markets and
grow brand awareness in emerging markets.
There are products that formulate a part of the industry that is still in the phase of
development, yet the organization has not been able to create a significant position in
that industry. The small market share obtained by the organization makes the future
outlook for the product uncertain, therefore investing in such domains is seen as a highrisk decision. With increasing competition and growing need to consume healthy
products among consumers, Nestle’s Milk products and Nutrition requires significant
investment from the brand to maintain and grow its market share. Nestle’s Chocolates
and confectionaries is another business unit at high competition and small market share
of the product in the industry.
Nestle’s Milo was launched as chocolate and malt powder for milk and water,
were perceived to have the potential to grow but however failed to create magic due to
the slow market growth. Failure to deliver the expected results makes the product a
source of loss for the organization, propelling the management to withdraw future
investment in the venture. Since the product is not expected to bring in any significant
capital, future investment is seen as a wastage of company resources.
iv. Based on case study 2, analyse company portfolio by comparing each product on
their market growth and market share using Boston Consulting Group (BCG)
matrix?
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