Nestle Purina PetCare SWOT
Annotated Bibliography
Nestle Purina PetCare Company SWOT Analysis. (2019). Nestle Purina PetCare Company SWOT Analysis, 1–7.
Company overview
Nestle Purina Petcare Company is a subsidiary of Nestle and manufactures pet food products offering dog and cat foods under a variety of brands. Nestle headquarters is in St. Louis Missouri and company operates in the United States, Europe, Asia, Oceania and Africa with 9 facilities.
SWOT Analysis – Strength
With an extensive brand portfolio and their focus on innovation along with strong support from their parent company Purina shows some positive strengths. Currently leading the market in pet food, it manufactures a wide variety of products that cater to the needs of pets and expectations of their owners.
SWOT Analysis – Weakness
All companies have some suppliers they purchase material/goods from in order to process and sell to their customers. One weakness Purina has is the dependence on their suppliers for procurement of raw materials used. As with any company raw materials are critical and failures in the supply chain will impact production and in turn affect the customer. This reliance can impact their competitive advantage as the competition has their own supply source.
SWOT Analysis – Opportunity
With a report of a spending increase in the pet industry Purina could benefit from individuals who are putting more of their hard-earned money in pet care or nutrition. Consumer spending has increased with personal and disposable income driving a spending increase.
SWOT Analysis – Threat
Pet care is a highly competitive market with competition from private label products could possibly lead to a decline in sales for the company. Their strongest competition is Mars, having such brands as Pedigree, Whiskas and Royal Canin.
Labor costs are on the rise in the U.S. which impact the companies profit margin. Tight labor markets coupled with government mandated minimum wage increases and more full-time employees yields increases in labor costs.
