Freedom Technology Services Online Case Analysis

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Freedom Technology Services Case Study Solution and Analysis


Freedom Technology Services is currently one of the greatest food chains worldwide. It was founded by Henri Freedom Technology Services in 1866, a German Pharmacist who first introduced "Farine Lactee"; a mix of flour and milk to feed infants and reduce mortality rate.

Freedom Technology Services is now a multinational company. Unlike other international business, it has senior executives from various countries and attempts to make decisions thinking about the entire world. Freedom Technology Services Case Study Help currently has more than 500 factories around the world and a network spread throughout 86 countries.


The function of Freedom Technology Services Corporation is to boost the lifestyle of individuals by playing its part and offering healthy food. It wants to assist the world in shaping a healthy and better future for it. It also wants to motivate people to live a healthy life. While making certain that the business is prospering in the long run, that's how it plays its part for a much better and healthy future


Nestlé's vision is to provide its clients with food that is healthy, high in quality and safe to eat. Freedom Technology Services envisions to develop a well-trained labor force which would assist the company to grow.


Nestlé's objective is that as currently, it is the leading company in the food industry, it thinks in 'Good Food, Great Life". Its mission is to supply its customers with a variety of choices that are healthy and finest in taste. It is focused on supplying the best food to its consumers throughout the day and night.

Executive Summary
Freedom Technology Services has a broad range of items that it provides to its consumers. In 2011, Freedom Technology Services was noted as the most gainful organization.

Goals and Goals.

• Remembering the vision and objective of the corporation, the business has actually laid down its goals and goals. These goals and goals are noted below.
• One goal of the business is to reach absolutely no land fill status. It is working toward no waste, where no waste of the factory is landfilled. It motivates its workers to take the most out of the by-products. (Freedom Technology Services, aboutus, 2017).
• Another goal of Freedom Technology Services is to waste minimum food throughout production. Usually, the food produced is wasted even prior to it reaches the clients.
• Another thing that Freedom Technology Services is working on is to improve its packaging in such a way that it would help it to decrease those problems and would also ensure the shipment of high quality of its items to its clients.
• Meet global standards of the environment.
• Construct a relationship based on trust with its customers, service partners, workers, and federal government.

Critical Concerns.

Recently, Freedom Technology Services Case Study Help Company is focusing more towards the technique of NHW and investing more of its earnings on the R&D innovation. The nation is investing more on mergers and acquisitions to support its NHW strategy. The target of the business is not achieved as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, provided in Exhibition H.

Situational Analysis.
Porter's 5 Forces Analysis
Analysis of Present Strategy, Vision and Goals.

The current Freedom Technology Services method is based upon the principle of Nutritious, Health and Health (NHW). This strategy handles the idea to bringing modification in the consumer choices about food and making the food things much healthier concerning about the health concerns.

The vision of this method is based on the secret approach i.e. 60/40+ which just means that the products will have a rating of 60% on the basis of taste and 40% is based upon its dietary value. The items will be made with additional nutritional worth in contrast to all other products in market getting it a plus on its nutritional material.

This technique was embraced to bring more tasty plus healthy foods and beverages in market than ever. In competitors with other business, with an intent of maintaining its trust over consumers as Freedom Technology Services Business has acquired more relied on by customers.

Microenvironment Analysis (PESTEL Analysis).

The analysis utilized to measure the position of business in the market is done by using PESTLE analysis, given up Exhibit A. Freedom Technology Services works under the guidelines and policies directed by federal government and food authority. The company is more concentrated on its services and items to ensure about the product quality and safety. This analysis will help in understanding environment of external market in the worldwide food and beverage industries. (Parera, 2017).

Swot Analysis
The political impact on the business is significantly affected by the public law and guidelines. The business has to satisfy its requirements offered by government otherwise it has to pay fine. Freedom Technology Services is considerably supported by Federal government to meet all the criteria of requirements like acts of health and safety. In efforts to produce good food, Freedom Technology Services is changing the requirements of food and drink manufacturing. This might cause the offense of governmental rules and guidelines.


Initiation of business where the capital income of each private matters for the increased net sale as this varies country-to-country. The economy of the Freedom Technology Services Business in U.S. is growing year by year with variable products launch particularly focusing on the nutritional food for babies.


The social environment continues changing with respect to time like the attitude of the consumer along with their way of lives. Any product or service of any business can not achieve success until the business is not worried about the living system of the consumer. Freedom Technology Services is taking procedures to fulfill its goals as the world is in search of tasty and healthy food.


In the development of organisation, tactical steps are somewhat mandatory. Freedom Technology Services is among the leading well-known international firm and by time it buys various departments to take its items to brand-new level. Freedom Technology Services is investing more on its R&D to make its items healthier and nutritious supplying consumers with health benefits.


There is no such effect of legal elements of Freedom Technology Services as it is more concerned over its guidelines and laws.


Freedom Technology Services, in regards to ecological impact is committed to work in environment-friendly environment with conservation of the natural deposits and energy. If the resources utilized are recyclable or not, as due to the production of larger number of items there might be a threat.

Competitive Forces Analysis (Porter's 5 Forces Design).

Freedom Technology Services Case Study Analysis has actually gotten a number of business that helped it in diversity and growth of its product's profile. This is the extensive description of the Porter's model of 5 forces of Freedom Technology Services Company, given up Exhibition B.


There is severe competition in the industry of food and drinks. Freedom Technology Services is one of the leading business in this competitive market with a variety of strong competitors like Unilever, Kraft foods and Group DANONE. Freedom Technology Services is running well in this race for last 150 years. Each business has a certain share of market. This rivalry is not just restricted to the price of the product but also for variation, innovation and quality. Every industry is striving hard for the maintenance of their market share. However, the competition of other business with Freedom Technology Services Case Study Analysis is quite high.
Vrio Analysis
Risk of New Entrants.

A variety of barriers are there for the new entrants to take place in the customer food market. Only a few entrants be successful in this market as there is a need to comprehend the customer need which requires time while recent rivals are well aware and has actually progressed with the consumer loyalty over their products with time. There is low threat of new entrants to Freedom Technology Services as it has rather large network of distribution worldwide controling with well-reputed image.

Bargaining Power of Providers.

In the food and beverage industry, Freedom Technology Services owes the largest share of market needing higher number of supply chains. This causes it to be a picturesque purchaser for the providers. Any of the supplier has never ever expressed any grumble about price and the bargaining power is also low. In reaction, Freedom Technology Services has also been concerned for its providers as it thinks in long-lasting relations.

Bargaining Power of Buyers.

There is high bargaining power of the purchasers due to terrific competitors. Switching expense is quite low for the consumers as many business sale a variety of comparable items. This appears to be a fantastic threat for any business. Therefore, Freedom Technology Services Case Study Solution ensures to keep its customers satisfied. This has led Freedom Technology Services to be among the devoted business in eyes of its buyers.

Hazard of Alternatives.

There has been a great risk of alternatives as there are substitutes of some of the Nestlé's products such as boiled water and pasteurized milk. There has actually likewise been a claim that a few of its products are not safe to use leading to the reduced sale. Hence, Freedom Technology Services started highlighting the health benefits of its items to cope up with the replacements.

Rival Analysis.

It has ended up being the second largest food and beverage market in the West Europe with a market share of about 8.6% with just a distinction of 0.3 points with Freedom Technology Services. Freedom Technology Services attracts local costumers by its low expense of the product with the local taste of the items maintaining its very first location in the worldwide market. Freedom Technology Services Case Study Analysis company has about 280,000 workers and functions in more than 197 nations edging its competitors in numerous areas.

Note: A short contrast of Freedom Technology Services with its close competitors is given up Exhibit C.

SWOT Analysis.

The internal analysis and external of the company also can be done through SWOT Analysis, summarized in the Exhibition F.


• Freedom Technology Services has an experience of about 140 years, enabling company to much better perform, in numerous scenarios.
• Nestlé's has existence in about 86 countries, making it a worldwide leader in Food and Beverage Industry.
• Freedom Technology Services has more than 2000 brands, which increase the circle of its target customers. Famous brands of Freedom Technology Services consist of; Maggi, Kit-Kat, Nescafe, and so on
• Freedom Technology Services Case Study Analysis has large big quantity spending costs R&D as compare to its competitors, making the company to launch release nutritious ingenious innovative products.
• After adopting its NHW Strategy, the business has actually done big amount of mergers and acquisitions which increase the sales growth and enhance market position of Freedom Technology Services.
• Freedom Technology Services is a widely known brand with high customer's loyalty and brand recall. This brand name loyalty of customers increases the chances of simple market adoption of various brand-new brand names of Freedom Technology Services.
Weak points.
• Acquisitions of those business, like; Kraft frozen Pizza company can give a negative signal to Freedom Technology Services consumers about their compromise over their core proficiency of much healthier foods.
• The growth I sales as compare to the company's financial investment in NHW Method are rather different. It will take long to alter the perception of individuals ab out Freedom Technology Services as a company selling healthy and nutritious items.


• Introducing more health related products makes it possible for the business to record the marketplace in which customers are rather mindful about health.
• Developing countries like India and China has largest markets worldwide. Hence broadening the market towards developing countries can increase the Freedom Technology Services organisation by increasing sales volume.
• Continue acquisitions and joint endeavors increases the market share of the business.
• Increased relationships with schools, hotel chains, restaurants etc. can likewise increase the number of Freedom Technology Services Case Study Solution consumers. For instance, teachers can suggest their students to acquire Freedom Technology Services products.


• Financial instability in nations, which are the prospective markets for Freedom Technology Services, can develop several issues for Freedom Technology Services.
• Shifting of items from regular to much healthier, causes extra costs and can cause decline business's profit margins.
• As Freedom Technology Services has a complicated supply chain, therefore failure of any of the level of supply chain can lead the business to face particular problems.

Segmentation Analysis

Market Segmentation

The group segmentation of Freedom Technology Services Case Study Solution is based on four elements; age, occupation, income and gender. Freedom Technology Services produces several items related to children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary products. Freedom Technology Services products are rather budget friendly by practically all levels, but its major targeted customers, in terms of income level are upper and middle middle level clients.

Geographical Division

Geographical division of Freedom Technology Services Case Study Solution is composed of its existence in almost 86 countries. Its geographical segmentation is based upon two main elements i.e. typical earnings level of the consumer as well as the environment of the area. Singapore Freedom Technology Services Company's division is done on the basis of the weather of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Freedom Technology Services is based upon the personality and lifestyle of the consumer. Freedom Technology Services 3 in 1 Coffee target those clients whose life style is rather hectic and don't have much time.

Behavioral Segmentation

Freedom Technology Services Case Solution behavioral segmentation is based upon the attitude understanding and awareness of the client. Its extremely nutritious products target those consumers who have a health mindful attitude towards their usages.

VRIO Analysis

The VRIO analysis of Freedom Technology Services Company is a broad range analysis supplying the organization with an opportunity to obtain a viable competitive benefit versus its competitors in the food and drink market, summarized in Exhibit I.


The resources used by the Freedom Technology Services business are important for the company or not. Such as the resources like financing, personnels, management of operations and professionals in marketing. This are a few of the essential valuable elements of for the identification of competitive advantage.


The important resources used by Freedom Technology Services are pricey or even rare. If these resources are frequently found that it would be easier for the rivals and the new rivals in the market to effortlessly relocate competitors.


The imitation procedure is pricey for the competitors of Freedom Technology Services Case Analysis Company. Nevertheless, it can be done just in 2 different techniques i.e. item duplication which is produced and manufactured by Freedom Technology Services Business and introducing of the alternative of the items with changing expense. This increases the threat of disruption to the current structure of the industry.


This component of VRIO analysis deals with the compatibility of the company to position in the market making productive use of its important resources which are difficult to imitate. Frequently, the development of management is completely dependent on the company's execution technique and group. Hence, this polishes the skills of the firm by time based on the decisions made by firm for the development of its tactical capitals.

Quantitative Analysis

R&D Spending as a portion of sales are declining with increasing real amount of spending shows that the sales are increasing at a greater rate than its R&D spending, and permit the company to more spend on R&D.

Net Profit Margin is increasing while R&D as a portion of sales is declining. This indication likewise reveals a thumbs-up to the R&D spending, mergers and acquisitions.

Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of financial obligations. This increasing financial obligation ratio posture a risk of default of Freedom Technology Services to its investors and could lead a decreasing share prices. Therefore, in terms of increasing financial obligation ratio, the company ought to not spend much on R&D and should pay its existing debts to reduce the threat for financiers.

The increasing danger of investors with increasing debt ratio and declining share costs can be observed by substantial decline of EPS of Freedom Technology Services Case Solution stocks.

The sales growth of business is likewise low as compare to its mergers and acquisitions due to slow perception structure of consumers. This sluggish development also impede business to additional spend on its mergers and acquisitions.( Freedom Technology Services, Freedom Technology Services Financial Reports, 2006-2010).

Keep in mind: All the above analysis is done on the basis of graphs and calculations given in the Displays D and E.

TWOS Analysis.

2 analysis can be used to obtain numerous strategies based upon the SWOT Analysis given above. A short summary of TWOS Analysis is given in Exhibition H.

Strategies to make use of Opportunities using Strengths.

Freedom Technology Services Case Solution should introduce more innovative items by large amount of R&D Spending and mergers and acquisitions. It might increase the market share of Freedom Technology Services and increase the revenue margins for the company. It might also offer Freedom Technology Services a long term competitive advantage over its rivals.

The worldwide growth of Freedom Technology Services need to be focused on market recording of establishing countries by growth, attracting more consumers through client's loyalty. As establishing nations are more populous than developed countries, it might increase the client circle of Freedom Technology Services.

Techniques to Get Rid Of Weak Points to Exploit Opportunities.

Freedom Technology Services Case Help must do careful acquisition and merger of organizations, as it could affect the consumer's and society's perceptions about Freedom Technology Services. It should merge and acquire with those companies which have a market credibility of healthy and healthy companies. It would improve the understandings of customers about Freedom Technology Services.

Freedom Technology Services ought to not only spend its R&D on innovation, rather than it ought to also concentrate on the R&D costs over examination of expense of numerous healthy items. This would increase cost performance of its products, which will lead to increasing its sales, due to declining prices, and margins.

Strategies to utilize strengths to get rid of risks.

Freedom Technology Services ought to move to not just developing but likewise to industrialized nations. It ought to broaden its circle to different countries like Unilever which runs in about 170 plus nations.

Techniques to get rid of weaknesses to prevent risks.

Freedom Technology Services ought to carefully manage its acquisitions to avoid the danger of misunderstanding from the consumers about Freedom Technology Services. It ought to combine and acquire with those nations having a goodwill of being a healthy business in the market. This would not only enhance the perception of consumers about Freedom Technology Services however would also increase the sales, earnings margins and market share of Freedom Technology Services. It would also enable the company to utilize its possible resources effectively on its other operations instead of acquisitions of those companies slowing the NHW method growth.


In order to sustain the brand in the market and keep the client undamaged with the brand, there are two choices:.

Option: 1.

The Company needs to spend more on acquisitions than on the R&D.


1. Acquisitions would increase overall properties of the business, increasing the wealth of the company. Nevertheless, costs on R&D would be sunk cost.
2. The business can resell the obtained units in the market, if it stops working to implement its method. However, amount invest in the R&D could not be revived, and it will be thought about totally sunk cost, if it do not provide potential results.
3. Investing in R&D offer slow growth in sales, as it takes long time to present an item. Acquisitions supply fast results, as it provide the company currently established product, which can be marketed quickly after the acquisition.


1. Acquisition of business's which do not fit with the company's worths like Kraftz foods can lead the business to face misunderstanding of consumers about Freedom Technology Services core worths of healthy and healthy items.
2. Large costs on acquisitions than R&D would send a signal of business's inadequacy of developing ingenious products, and would lead to customer's frustration also.
3. Big acquisitions than R&D would extend the product line of the business by the products which are currently present in the market, making business not able to present new innovative products.

Option: 2

The Business needs to spend more on its R&D instead of acquisitions.


1. It would enable the company to produce more innovative products.
2. It would provide the company a strong competitive position in the market.
3. It would enable the business to increase its targeted customers by presenting those items which can be used to a totally new market sector.
4. Innovative items will provide long term advantages and high market share in long term.


1. It would reduce the earnings margins of the company.
2. In case of failure, the entire spending on R&D would be considered as sunk expense, and would impact the company at big. The threat is not in the case of acquisitions.
3. It would not increase the wealth of business, which could offer an unfavorable signal to the investors, and might result I declining stock costs.

Alternative 3:

Continue its acquisitions and mergers with substantial spending on in R&D Program.


1. It would allow the company to present brand-new innovative products with less danger of transforming the spending on R&D into sunk cost.
2. It would provide a positive signal to the investors, as the overall assets of the company would increase with its substantial R&D spending.
3. It would not impact the profit margins of the business at a big rate as compare to alternative 2.
4. It would offer the company a strong long term market position in terms of the business's general wealth in addition to in regards to innovative items.


1. Risk of conversion of R&D spending into sunk expense, greater than alternative 1 lesser than alternative 2.
2. Threat of misconception about the acquisitions, higher than alternative 2 and lesser than option 1.
3. Intro of less number of innovative products than alternative 2 and high number of innovative products than alternative 1.


With the deep analysis of the above options, it is recommended that the business needs to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only introduce ingenious and new products in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share costs also, as investors want to invest more in companies with significant R&D spending and boost in the total worth of the business.

Action and application Method

Method can be implemented efficiently by developing certain short term along with long term strategies. These strategies might be as follows;

Short Term Strategy (0-1 year).

• Under the short-term plan Freedom Technology Services Case Solution must carry out different activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which create most of its revenue.
• Examine the present target market along with the market section which is not include in the business's circle.
• Evaluate the present financial information to determine the quantity that ought to be spent on the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early earnings (dividend). It would let the company to understand that how much amount must be spent on R&D.

Mid Term Plan (1-5 years).

• Obtain those organizations in which the business has potential experience to deal with. Acquire most favorable organizations with a strong commitment to health, to construct the customer's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Freedom Technology Services worths and vision and to prevent possible risk of sunk cost.

Long Term Strategy (1-10 years).

• Acquire companies with health as well as taste factor, as the base for the Freedom Technology Services as a company producing healthy products has been built under midterm plan and now the company could move towards taste factor too to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build brand-new items.

Freedom Technology Services has stayed the top market gamer for more than a years. It has institutionalized its techniques and culture to align itself with the market modifications and client habits, which has ultimately permitted it to sustain its market share. Though, Freedom Technology Services has actually developed substantial market share and brand name identity in the urban markets, it is recommended that the business needs to concentrate on the rural areas in regards to developing brand awareness, loyalty, and equity, such can be done by creating a particular brand allotment method through trade marketing strategies, that draw clear distinction between Freedom Technology Services Case Solution products and other rival items. Additionally, Freedom Technology Services must utilize its brand picture of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will allow the company to develop brand equity for freshly introduced and currently produced items on a higher platform, making the efficient usage of resources and brand image in the market.