Question

Identify Nestle corporate level strategy (i.e. related/unrelated diversification, vertical/horizontal integration, etc.)

Answer 1

Nestle is one of the biggest players in the food industry. It is known to follow the aim of providing nutrition, health and wellness to its customers through its food products. The corporate level strategy that Nestle follows is diversification strategy, othe related and unrelated diversification. Related dversification is a type of diversification wherein a company diversifies in the same product line in which it is originally operating in a way that its newly diversified product line operates in the same supply chain, using same value network and capabilities as its original product line. Herein the new product line operates in the same market as its original product. Unrelated diversification is when a company diversifies in a product line that is completely differeny from its existing product line wherein the new product line will operate in a different market from its original market.

Under the related diversification, Nestle can be seen to be holding a huge product portfolio of similar products like dairy products, chocolates, baby foods, breakfast cereal, etc. Herein all are processed food products

Under unrelated diversification, Nestle acquired and entered in joint venturing with other big names like the acquisition of Alcon Laboratories Inc. in Texas by Nestle which is a pharmaceutical company operating in eye care and related products. Herein Nestle entered into the business of pharmaceutical which is entirely different from its food product line.