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What do you need to know about Nestle nutrition?
Nestle Nutrition is a multinational company that produces and sales nutritional supplements in the form of foodstuffs and drinks (Nestlé, 2013). The demand factors that affect the sales and profitability of the company include price, competition, income levels, and consumer tastes and preferences.
Why do Nestle nutritional supplements have an elastic demand?
Nestlé’s nutritional supplements are likely to have an elastic demand because they have a large number of close substitutes. Furthermore, the buyers of the supplements have low switching costs. Thus, they can easily shift from one brand of supplements to another in the event of a price change.
What kind of macroeconomic analysis does Nestle do?
The macroeconomic analysis, on the other hand, will focus on the macroeconomic factors that are likely to affect the success of the company. Nestle Nutrition is a multinational company that produces and sales nutritional supplements in the form of foodstuffs and drinks (Nestlé, 2013).
What happens when Nestle increases its prices above competitors?
Due to high competition in the market, an increase in the prices of Nestlé’s products is likely to decrease their demand, thereby reducing the firm’s sales (Mankiw & Taylor, 2011, p. 67). This happens happen when Nestlé increases its prices above those of its competitors. The large number of firms in the market has caused high competition.
Last Update: Oct 2021
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