SWOT stands for Strength, Weakness, Opportunity and Threat. This analysis help a company to know about its strengths which could be its core competencies, its financial strenghts, brand value etc. It also helps to know about its weaknesses that could be lower lead time, expensive purchase cost etc. Companies also perform SWOT to analyze the market and get aware of the current opportunities and threats that persist in the market. Like market growth, product demand could be type of opportunities and new entrants could be a threat. Companies build on there strenghts to grab the opportunities present. It also tries to overcome its weaknesses to reduce the threats,
Thus, Nestle can perform this analysis to know about its strengts as its brand value, legacy, product popularity, market dominance etc. It can also find its weakness which could help the company to overcome them and perform well.
This analysis helps to fight competition as it makes the company aware of its working in these four dimensions.
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