However, the strategy will shift to small and medium sized enterprises (SMEs) with the potential to eat into Nestle’s market share. The company will aggressively pursue the acquisition of SMEs within the next 7 years (The National, 2013).
The company will also implement a hybrid structure combining holacracy and hierarchy that facilitate good interpersonal relations, communication, and faster promotions for the best performing employees (Revill, 2013).
The entry strategy is based on excellent positioning and competitive pricing. Nestle intends to position itself as an internationally respected brand that guarantees quality products at affordable prices (Koltrowitz, 2013).
Dairy products will be priced much lower than confectionaries because they have the largest markets. Baby food and nutritional products will be priced 3% lower than whatever rivals are offering (Y-Sing, 2014).
Currently, the company forecasts a 6% growth in sales revenue for the first year of operation. However, the intention is to achieve a 13% steady growth in the next 5 years, followed by 15% within the next 10 years.
In the first year of operation, Nestle will have a 13.5% market share. The objective is to increase market share to 27% in the next 3 years and then 50% within 4 years (Nestle, 2014). This will be supported by aggressive marketing and competitive pricing.
The company would like to go public in Kuwait to raise enough money to fund its expansionist strategy (World Bakers, 2013). However, this proposal is still hampered by increasing risk levels in the Kuwaiti market. The company intends to manage this risk for the next 6 years before it goes public.
Algethami, S. (2014, February 24) Nestle Middle East aims to triple sales by 2020, viewed December 2, 2014, from .
InsiderMedia. (2014, November 19) Record year for overseas confectionery sales, viewed December 2, 2014, from