STARTING A NEW BUSINESS BY REASON OF CONCERN

By M. Suyanto

There are a lot of reasons to start a new business. One of them is because of the concern for the occurrence of environmental changing. Henri Nestlé, a German chemist who lived in Vevey Switzerland, was concerned about the high infant mortality rates in the late 19th century, precisely in Switzerland in 1866. Then, a few pharmacists were trained to begin carrying out  an experiment on various combinations of milk, flour, and sugar, in order to develop alternative sources of infant nutrition for mothers who were not able to breastfeed. Because of the concern, the business opportunity was created. Nestle eventually created “Farine Lactee”, sumplementary food for the babies who did not get enough milk of their mothers. There were so many babies  who were saved by means of the food by then that Nestle was trusted by public.

Nestle’s first customer was a premature baby who could not drink its mother’s milk. After plenty babies had been saved by means of  Farine Lactee, Nestle could sell these products throughout Europe. Henri Nestlé also gave the initial understanding of the brand and ownership. He used his name, Nestle, for the symbol of the company. In 1874, Nestle began producing condensed milk. The product competed with condensed milk products from Anglo-Swiss firm. Then, Nestle produced chocolate milk products in 1875. A friend of Henri Nestlé, Peter, who was the leading chocolate manufacturer in the world, joined Nestle, and even the Anglo-Swiss, his main competitor, eventually also joined him 1905.

Quality is the philosophy of Nestle. Millions of people around the world have trusted Nestle products. Trust is the image of quality and reputation for high standards from year to year. Products, services, and customer contacts help form the image. Nestle is the product trademark which constitutes promises to customers, and its products which are safe for consumptions ,  and which are not conflict with the regulations, are in accordance with the high quality standards, and customers want it to keep its word every day.

Quality is a tool to increase competitive advantage. If the customers are not satisfied with the quality of Nestle products, they will leave and consume other brands. Therefore, Nestle gives awards to each category of products in markets where the other companies compete with each other. Quality is not a guarantee of success, but it is one way to achieve success. The competitive advantage in the long-term is the quality that has an optimum value in the minds of consumers, and high values can lead customers to satisfaction, which ultimately makes consumers remain loyal to its products.

Communities in the world have been impressed by the company with the motto “Good Food, Good Life” as a positioning strategy. The food company which was the greatest in the world in 2003 is the most admired company in the world with the 39th rank according to Fortune magazine.