Target change is vital for organizations that seek to maintain a favorable market position. Firms usually decide what changes to make in reaction to a market change. The Nestle Company considers China as its second-largest market following the United States. In 2015, the company experienced slow sales and stagnant revenue in the Chinese market. The trend was due to China experiencing a lower production of coffee and bouillon cubes in that year. Also, the deflationary measures in the European market offset the company’s long-term revenue expectations from frozen foods. Also, the West Africa Ebola outbreak led to the termination of major economic ties with most parts of the word. Thus, if Nestle had acknowledged these market changes and formulated counter strategies, they could have prevented loss of revenue.
According to the firm’s CEO, the company seeks to add more premium products such as chocolate in the Chinese market and improve their product portfolio. The firm plans to make second order changes such as partnership in the European market to improve their domination in the European food market. These strategies are likely to improve the company’s revenue.
Alternatively, the company can try making organic and ethnic foods that are more suitable for the European market. Nestle can weigh the option of abandoning the African market that is highly unpredictable and challenging for major food companies. It should also focus on restructuring their marketing strategies to achieve target market goals. The strategy is likely to foster incremental growth for the company in the international market.