Nanosolar Inc Case Study Solution & Analysis
Nanosolar Inc Case Study Analysis is presently one of the biggest food chains worldwide. It was founded by Henri Nanosolar Inc in 1866, a German Pharmacist who initially introduced "Farine Lactee"; a mix of flour and milk to reduce and feed babies mortality rate. At the same time, the Page brothers from Switzerland likewise found The Anglo-Swiss Condensed Milk Company. The two became competitors at first however in the future merged in 1905, leading to the birth of Nanosolar Inc.
Nanosolar Inc is now a global business. Unlike other multinational business, it has senior executives from different nations and tries to make decisions thinking about the whole world. Nanosolar Inc Case Study Help presently has more than 500 factories around the world and a network spread across 86 countries.
The purpose of Nanosolar Inc Corporation is to boost the quality of life of people by playing its part and offering healthy food. While making sure that the business is prospering in the long run, that's how it plays its part for a better and healthy future
Nestlé's vision is to supply its customers with food that is healthy, high in quality and safe to eat. It wishes to be ingenious and simultaneously comprehend the requirements and requirements of its consumers. Its vision is to grow quickly and provide products that would please the requirements of each age group. Nanosolar Inc pictures to develop a trained labor force which would help the company to grow.
Nestlé's mission is that as currently, it is the leading company in the food industry, it thinks in 'Good Food, Excellent Life". Its objective is to provide its customers with a variety of choices that are healthy and best in taste. It is focused on supplying the best food to its customers throughout the day and night.
Nanosolar Inc Case Study Analysis has a wide variety of products that it offers to its consumers. Its products consist of food for infants, cereals, dairy products, snacks, chocolates, food for pet and mineral water. It has around 4 hundred and fifty (450) factories all over the world and around 328,000 staff members. In 2011, Nanosolar Inc was listed as the most gainful organization.
Goals and goals.
• Bearing in mind the vision and mission of the corporation, the business has put down its goals and objectives. These goals and goals are noted below.
• One objective of the company is to reach no landfill status.
• Another goal of Nanosolar Inc is to lose minimum food during production. Most often, the food produced is squandered even before it reaches the clients.
• Another thing that Nanosolar Inc is dealing with is to enhance its packaging in such a method that it would help it to reduce those issues and would also ensure the shipment of high quality of its products to its customers.
• Meet worldwide requirements of the environment.
• Develop a relationship based on trust with its customers, service partners, workers, and government.
Recently, Nanosolar Inc Case Study Solution Company is focusing more towards the technique of NHW and investing more of its profits on the R&D innovation. The country is investing more on mergers and acquisitions to support its NHW strategy. The target of the company is not attained as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, provided in Display H.
Analysis of Existing Strategy, Vision and Goals.
The present Nanosolar Inc method is based on the principle of Nutritious, Health and Wellness (NHW). This strategy deals with the idea to bringing change in the consumer preferences about food and making the food stuff healthier worrying about the health concerns.
The vision of this technique is based on the secret approach i.e. 60/40+ which simply means that the items will have a score of 60% on the basis of taste and 40% is based on its dietary worth. The products will be made with additional nutritional value in contrast to all other products in market getting it a plus on its dietary material.
This strategy was embraced to bring more healthy plus yummy foods and beverages in market than ever. In competitors with other companies, with an objective of keeping its trust over customers as Nanosolar Inc Business has actually gained more trusted 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 in Exhibit A. Nanosolar Inc works under the regulations and rules directed by government and food authority. The business is more focused on its product or services to ensure about the product quality and security. This analysis will help in understanding environment of external market in the international food and drink markets. (Parera, 2017).
Nanosolar Inc is greatly supported by Government to satisfy all the requirements of requirements like acts of health and security. In efforts to produce good food, Nanosolar Inc Case Study Help is changing the requirements of food and beverage manufacturing.
Initiation of the business where the capital income of each individual matters for the increased net sale as this differs country-to-country. The economy of the Nanosolar Inc Business in U.S. is growing year by year with variable items launch particularly concentrating on the nutritional food for infants.
The social environment keeps on changing with regard to time like the attitude of the consumer as well as their lifestyles. Any product and services of any company can not succeed till the company is not worried about the living system of the consumer. Nanosolar Inc is taking procedures to meet its goals as the world remains in search of healthy and delicious food.
In the development of company, strategic measures are rather mandatory. Nanosolar Inc is one of the leading popular international company and by time it purchases various departments to take its products to brand-new level. Nanosolar Inc is spending more on its R&D to make its items much healthier and healthy providing consumers with health benefits.
There is no such effect of legal factors of Nanosolar Inc as it is more worried over its laws and regulations.
Nanosolar Inc, in terms of environmental effect is devoted to work in environmentally friendly environment with preservation of the natural resources and energy. As due to the manufacturing of larger variety of products there may be a threat if the resources used are recyclable or not.
Competitive Forces Analysis (Porter's 5 Forces Design).
Nanosolar Inc Case Study Help has actually gotten a variety of business that assisted it in diversification and growth of its item's profile. This is the detailed description of the Porter's model of 5 forces of Nanosolar Inc Company, given up Exhibition B.
Nanosolar Inc is one of the top company in this competitive market with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Nanosolar Inc is running well in this race for last 150 years. The competitors of other business with Nanosolar Inc is rather high.
Hazard of New Entrants.
A variety of barriers are there for the brand-new entrants to occur in the consumer food industry. Only a few entrants prosper in this market as there is a need to understand the consumer need which requires time while recent competitors are well aware and has actually advanced with the customer commitment over their items with time. There is low risk of new entrants to Nanosolar Inc as it has rather big network of distribution internationally controling with well-reputed image.
Bargaining Power of Suppliers.
In the food and drink industry, Nanosolar Inc owes the biggest share of market needing higher number of supply chains. This causes it to be a picturesque purchaser for the suppliers. For this reason, any of the provider has never ever expressed any grumble about rate and the bargaining power is likewise low. In reaction, Nanosolar Inc 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 competition. Changing cost is quite low for the customers as numerous companies sale a number of similar items. This seems to be a terrific hazard for any company. Thus, Nanosolar Inc Case Study Analysis makes sure to keep its customers satisfied. This has actually led Nanosolar Inc to be among the loyal business in eyes of its buyers.
Hazard of Alternatives.
There has actually been a great threat of substitutes as there are alternatives of a few of the Nestlé's products such as boiled water and pasteurized milk. There has also been a claim that a few of its products are not safe to utilize resulting in the decreased sale. Hence, Nanosolar Inc began highlighting the health advantages of its products to cope up with the alternatives.
It has ended up being the second biggest food and beverage market in the West Europe with a market share of about 8.6% with only a distinction of 0.3 points with Nanosolar Inc. Nanosolar Inc attracts local clients by its low cost of the product with the local taste of the items preserving its first place in the global market. Nanosolar Inc Case Study Solution business has about 280,000 workers and functions in more than 197 nations edging its rivals in lots of regions.
Note: A quick comparison of Nanosolar Inc with its close competitors is given up Display C.
The internal analysis and external of the company also can be done through SWOT Analysis, summarized in the Exhibit F.
• Nanosolar Inc has an experience of about 140 years, making it possible for business to better perform, in different circumstances.
• Nestlé's has existence in about 86 countries, making it an international leader in Food and Drink Market.
• Nanosolar Inc has more than 2000 brand names, which increase the circle of its target consumers. These brands consist of child foods, animal food, confectionary products, beverages etc. Famous brand names of Nanosolar Inc include; Maggi, Kit-Kat, Nescafe, etc.
• Nanosolar Inc Case Study Analysis has big quantity of spending on R&D as compare to its competitors, making the company to launch more innovative and healthy products. This development provides the business a high competitive position in long term.
• After adopting its NHW Method, the business has done big quantity of mergers and acquisitions which increase the sales growth and enhance market position of Nanosolar Inc.
• Nanosolar Inc is a widely known brand name with high consumer's loyalty and brand name recall. This brand commitment of consumers increases the chances of simple market adoption of different new brands of Nanosolar Inc.
• Acquisitions of those company, like; Kraft frozen Pizza organisation can offer an unfavorable signal to Nanosolar Inc consumers about their compromise over their core competency of healthier foods.
• The development I sales as compare to the company's financial investment in NHW Strategy are quite various. It will take long to alter the understanding of people ab out Nanosolar Inc as a company offering healthy and healthy products.
• Introducing more health related items allows the company to capture the market in which consumers are quite mindful about health.
• Developing nations like India and China has biggest markets worldwide. Broadening the market towards developing countries can enhance the Nanosolar Inc business by increasing sales volume.
• Continue acquisitions and joint endeavors increases the market share of the business.
• Increased relationships with schools, hotel chains, restaurants and so on can also increase the variety of Nanosolar Inc Case Study Solution consumers. For example, instructors can recommend their students to buy Nanosolar Inc products.
• Financial instability in countries, which are the possible markets for Nanosolar Inc, can produce a number of issues for Nanosolar Inc.
• Shifting of products from regular to healthier, leads to extra costs and can lead to decline company's revenue margins.
• As Nanosolar Inc has a complex supply chain, for that reason failure of any of the level of supply chain can lead the business to deal with particular issues.
The group segmentation of Nanosolar Inc Case Study Help is based upon four factors; age, gender, earnings and occupation. Nanosolar Inc produces several items related to babies i.e. Cerelac, Nido, etc. and related to adults i.e. confectionary products. Nanosolar Inc products are rather budget friendly by nearly all levels, however its significant targeted consumers, in terms of earnings level are middle and upper middle level consumers.
Geographical segmentation of Nanosolar Inc Case Study Solution is composed of its presence in nearly 86 countries. Its geographical segmentation is based upon two primary factors i.e. typical income level of the customer as well as the environment of the region. For instance, Singapore Nanosolar Inc Business's division is done on the basis of the weather condition of the region i.e. hot, cold or warm.
Psychographic segmentation of Nanosolar Inc is based upon the character and lifestyle of the customer. For instance, Nanosolar Inc 3 in 1 Coffee target those clients whose lifestyle is rather busy and don't have much time.
Nanosolar Inc Case Help behavioral segmentation is based upon the mindset understanding and awareness of the customer. For instance its highly healthy items target those customers who have a health mindful mindset towards their consumptions.
The VRIO analysis of Nanosolar Inc Company is a broad range analysis offering the organization with a chance to get a feasible competitive advantage against its rivals in the food and drink industry, summed up in Exhibit I.
The resources utilized by the Nanosolar Inc company are valuable for the business or not. Such as the resources like financing, human resources, management of operations and specialists in marketing. This are a few of the crucial important elements of for the recognition of competitive advantage.
The valuable resources utilized by Nanosolar Inc are pricey or even unusual. , if these resources are typically found that it would be much easier for the competitors and the new rivals in the market to easily move in competition.
The replica process is expensive for the rivals of Nanosolar Inc Case Analysis Business. Nevertheless, it can be done only in 2 various strategies i.e. item duplication which is produced and manufactured by Nanosolar Inc Company and introducing of the substitute of the items with switching expense. This increases the hazard of disturbance to the recent structure of the market.
This component of VRIO analysis deals with the compatibility of the company to position in the market making productive use of its valuable resources which are hard to imitate. Often, the advancement of management is completely based on the firm's execution technique and group. Therefore, this polishes the abilities of the firm by time based on the choices made by company for the development of its tactical capitals.
R&D Spending as a portion of sales are decreasing with increasing actual quantity of costs shows that the sales are increasing at a greater rate than its R&D costs, and allow the business to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This indication likewise reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Debt ratio of the company is increasing due to its costs on mergers, acquisitions and R&D development instead of payment of financial obligations. This increasing financial obligation ratio position a hazard of default of Nanosolar Inc to its financiers and might lead a declining share rates. In terms of increasing debt ratio, the firm needs to not spend much on R&D and needs to pay its existing financial obligations to decrease the threat for financiers.
The increasing danger of investors with increasing financial obligation ratio and decreasing share prices can be observed by substantial decrease of EPS of Nanosolar Inc Case Help stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow understanding building of customers. This slow development also hinder business to further spend on its acquisitions and mergers.( Nanosolar Inc, Nanosolar Inc Financial Reports, 2006-2010).
Keep in mind: All the above analysis is done on the basis of charts and calculations given up the Exhibitions D and E.
2 analysis can be used to obtain different methods based upon the SWOT Analysis offered above. A quick summary of TWOS Analysis is given in Exhibit H.
Techniques to exploit Opportunities utilizing Strengths.
Nanosolar Inc Case Analysis should present more innovative products by large amount of R&D Spending and mergers and acquisitions. It could increase the market share of Nanosolar Inc and increase the revenue margins for the company. It might likewise offer Nanosolar Inc a long term competitive benefit over its rivals.
The global expansion of Nanosolar Inc must be focused on market capturing of developing countries by growth, attracting more consumers through client's loyalty. As establishing nations are more populated than industrialized nations, it might increase the customer circle of Nanosolar Inc.
Methods to Get Rid Of Weaknesses to Exploit Opportunities.
Nanosolar Inc Case Solution should do cautious acquisition and merger of companies, as it might impact the consumer's and society's understandings about Nanosolar Inc. It must merge and get with those companies which have a market reputation of healthy and healthy companies. It would enhance the perceptions of customers about Nanosolar Inc.
Nanosolar Inc must not just invest its R&D on development, instead of it needs to also focus on the R&D costs over examination of cost of various healthy products. This would increase cost effectiveness of its items, which will result in increasing its sales, due to decreasing prices, and margins.
Methods to use strengths to conquer dangers.
Nanosolar Inc ought to move to not just establishing but likewise to industrialized countries. It needs to broaden its circle to numerous nations like Unilever which operates in about 170 plus countries.
Techniques to get rid of weaknesses to avoid dangers.
Nanosolar Inc ought to wisely manage its acquisitions to avoid the danger of mistaken belief from the consumers about Nanosolar Inc. It needs to obtain and combine with those countries having a goodwill of being a healthy company in the market. This would not only improve the understanding of consumers about Nanosolar Inc but would likewise increase the sales, revenue margins and market share of Nanosolar Inc. It would likewise make it possible for the business to use its possible resources effectively on its other operations instead of acquisitions of those organizations slowing the NHW strategy growth.
In order to sustain the brand name in the market and keep the customer undamaged with the brand, there are two alternatives:.
The Business should spend more on acquisitions than on the R&D.
1. Acquisitions would increase total assets of the business, increasing the wealth of the business. Spending on R&D would be sunk expense.
2. The company can resell the obtained units in the market, if it stops working to implement its strategy. Quantity spend on the R&D might not be restored, and it will be thought about entirely sunk cost, if it do not offer possible results.
3. Investing in R&D offer slow growth in sales, as it takes very long time to present an item. However, acquisitions offer fast results, as it offer the business already developed item, which can be marketed right after the acquisition.
1. Acquisition of business's which do not fit with the business's worths like Kraftz foods can lead the company to deal with misconception of customers about Nanosolar Inc core worths of healthy and healthy products.
2. Large costs on acquisitions than R&D would send a signal of company's ineffectiveness of developing ingenious products, and would results in customer's dissatisfaction too.
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 company unable to present brand-new innovative items.
The Company must invest more on its R&D instead of acquisitions.
1. It would allow the business to produce more innovative items.
2. It would offer the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted customers by introducing those products which can be provided to a completely new market sector.
4. Innovative products will supply long term benefits and high market share in long run.
1. It would decrease the earnings margins of the business.
2. In case of failure, the whole costs on R&D would be considered as sunk expense, and would impact the company at big. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could offer an unfavorable signal to the financiers, and might result I decreasing stock prices.
Continue its acquisitions and mergers with considerable costs on in R&D Program.
1. It would allow the company to present new innovative products with less risk of converting the costs on R&D into sunk expense.
2. It would provide a positive signal to the financiers, as the general possessions of the company would increase with its considerable R&D costs.
3. It would not impact the revenue margins of the company at a big rate as compare to alternative 2.
4. It would offer the business a strong long term market position in regards to the business's general wealth along with in regards to innovative items.
1. Risk of conversion of R&D costs into sunk expense, greater than alternative 1 lower than alternative 2.
2. Threat of misconception about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Introduction of less number of ingenious products than alternative 2 and high variety of innovative products than alternative 1.
With the deep analysis of the above alternatives, it is recommended that the business ought to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not just present brand-new and innovative items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share costs also, as financiers are willing to invest more in companies with considerable R&D spending and increase in the overall worth of the business.
Action and application Strategy
Strategy can be carried out successfully by developing particular short-term as well as long term strategies. These plans might be as follows;
Short Term Strategy (0-1 year).
• Under the short term strategy Nanosolar Inc Case Solution must perform numerous activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which produce the majority of its profits.
• Examine the present target market along with the marketplace section which is not consist of in the business's circle.
• Evaluate the existing financial information to measure the quantity that must be spent on the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that just how much quantity should be invested in R&D.
Mid Term Strategy (1-5 years).
• Acquire those companies in which the business has potential experience to deal with. Obtain most beneficial organizations with a strong commitment to health, to construct the consumer's understandings in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Nanosolar Inc values and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years).
• Obtain organizations with health in addition to taste aspect, as the base for the Nanosolar Inc as a company producing healthy items has been constructed under midterm plan and now the business might move towards taste factor as well to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop new items.
Nanosolar Inc has stayed the top market player for more than a decade. It has institutionalized its strategies and culture to align itself with the market modifications and client habits, which has actually ultimately enabled it to sustain its market share. Though, Nanosolar Inc has developed considerable market share and brand identity in the metropolitan markets, it is recommended that the business needs to concentrate on the rural areas in terms of establishing brand name awareness, loyalty, and equity, such can be done by creating a specific brand name allowance strategy through trade marketing methods, that draw clear distinction between Nanosolar Inc Case Analysis items and other rival products. Additionally, Nanosolar Inc must leverage its brand name picture of healthy and safe food in catering the rural markets and likewise to upscale the offerings in other classifications such as nutrition. This will enable the company to establish brand equity for newly introduced and already produced items on a greater platform, making the efficient use of resources and brand name image in the market.