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Analyzing the Strengths and Weaknesses of Nivea Brand: A PESTLE and Porter’s Five Forces Approach


Nivea has been a famous beauty brand in the marketplace for over a century. The brand was based in 1911 through Beiersdorf, a German skincare employer. Nivea has successfully supplied incredible skin care merchandise to its customers, which has grown to be a family call globally. The brand has a wide variety of skin care merchandise, including creams, lotions, frame wash, and deodorants (Alberti, pp. 133, 2018). Nivea’s merchandise is advertised in the direction of various goal target markets, consisting of ladies and men of all ages, with a focal point on individuals who are health aware and interested in keeping healthy pores and skin (Rubio, pp. 62, 2018). The brand has controlled to set up sturdy popularity for its merchandise, made using herbal ingredients, is dermatologically tested, and is secure for use on all pores and skin types. In this evaluation, we can look at Nivea’s macro and micro environments to perceive critical possibilities and threats the brand may encounter over the following few years. This evaluation will encompass an assessment of marketplace trends, patron preferences, aggressive landscape, regulatory elements, and technological improvements which can affect Nivea’s operations.

The identity of the strengths and weaknesses of the brand

It has been around for over a hundred years, and Nivea has maintained a sturdy popularity within the enterprise. However, like other brands, Nivea has strengths and weaknesses that affect its marketplace function and growth. This section examines Nivea’s brand strengths and weaknesses using PESTLE and Porter’s Five models.

PESTLE Analysis

PESTLE evaluation is a framework used to assess the outside elements that affect an employee’s performance. It stands for Political, Economic, Social, Technological, Legal, and Environmental factors.

  • Political: Nivea operates in a rather regulated enterprise. It needs to follow diverse legal guidelines and rules concerning product safety, labelling, and advertising (Rubio, pp. 62, 2018). The employer has maintained terrific popularity with regulators, which has helped it benefit the acceptance as accurate with consumers.
  • Economic: The private care enterprise is rather aggressive, and Nivea has control to keep its marketplace proportion regardless of financial downturns (Alberti, pp. 133, 2018). The employer has been capable of maintaining its expenses inexpensive, which has helped it entice price-touchy consumers.
  • Social: Nivea has a sturdy brand photo and is identified for its excellent merchandise. The brand has a faithful patron base that trusts its inventory, and the employer has been capable of keeping a high-quality social photo.
  • Technological: Nivea has embraced generation to decorate its product improvement method and enhance its delivery chain (Rubio, pp. 62, 2018). Additionally, the employer invested in virtual advertising to attain a broader target market and improve patron engagement.
  • Legal: Nivea must follow diverse legal guidelines and rules concerning product safety, labelling, and advertising. The employer has been capable of maintaining terrific popularity with regulators, which has helped it benefit the acceptance as accurate of consumers.
  • Environmental: Nivea has a sturdy dedication to sustainability and has applied diverse tasks to lessen its environmental effect (Alberti, pp. 133, 2018). The employer has additionally released merchandise which can be green and sell sustainability.

Porter’s Five Forces Analysis

Porter’s Five Forces is a framework used to investigate the aggressive surroundings of an enterprise. It includes five elements: risk of recent entrants, bargaining strength of suppliers, bargaining strength of buyers, risk of substitutes, and aggressive rivalry.

  • Threat of recent entrants: The private care enterprise is rather aggressive, and there are numerous installed gamers withinside the marketplace (Alberti, pp. 133, 2018). However, Nivea has a sturdy brand photo and a constant patron base, making it hard for brand-spanking new entrants to enter the marketplace.
  • Bargaining strength of suppliers: Nivea has a various provider base, facilitating a solid delivery chain. However, the employer needs to cope with fluctuations in uncooked cloth expenses, which could affect its income margins.
  • Bargaining strength of buyers: Consumers have a wide variety of alternatives for private care merchandise, which offers them excessive bargaining strength (Rubio, pp. 62, 2018). However, Nivea’s inexpensive expenses and excellent inventory have helped it keep a sturdy function withinside the marketplace.
  • Threat of substitutes: There are many substitutes to be had withinside the private care marketplace, consisting of herbal and natural merchandise. However, Nivea’s excellent merchandise and sturdy brand photo make it a desired desire for plenty of consumers.
  • Competitive rivalry: The private care enterprise is rather aggressive, and Nivea needs to compete with installed gamers which includes L’Oreal, Unilever, and Procter & Gamble (Alberti, pp. 133, 2018). However, the employer’s sturdy brand photo and excellent merchandise have helped it keep an aggressive edge.

In conclusion, Nivea has a sturdy brand photo and constant patron base, which has helped it keep a sturdy function withinside the private care marketplace (Rubio, pp. 62, 2018). The employer has been capable of adapting to adjustments withinside the enterprise and embodying generation to enhance its merchandise and supply chain.


Based on the number one studies analysis, Nivea can take gain of critical possibilities and conquer key threats to hold or grow its modern-day marketplace share.

Firstly, Nivea can leverage social media to grow brand awareness. The studies showed that many clients find new skincare merchandise through social media. To capitalize on this trend, Nivea can spend money on social media advertising and marketing campaigns that resonate with its target market and inspire them to strive for Nivea’s merchandise. The brand can expand a user-pleasant e-trade internet site and cellular app that gives clients an unbroken purchasing experience. Nivea also can spend money on virtual advertising and marketing campaigns to attain a much wider target market online (Alberti, pp. 133, 2018). The brand can create engaging content with tutorials, testimonials, and user-generated content material to exhibit the blessings of its merchandise. By growing its social media presence, Nivea can attain new clients and hold its marketplace role. Additionally, the brand can engage with online stores to make its distribution community bigger and earn extra clients.

Secondly, Nivea can gain the developing call for herbal and natural skin care merchandise through growing merchandise that caters to this trend. The studies found that clients are getting extra health-aware and interested in using herbal and natural skin care merchandise. To meet this, call, Nivea can contain different herbal and natural substances in its product formulations and market them as such. Nivea can contain other herbal and natural substances in its product formulations and sell them as such. The brand can spend money on studies and improvement to create new product strains that cater to this trend (Alberti, pp. 133, 2018). Nivea also can paint with providers to supply exquisite herbal and natural substances that align with its brand values. By growing merchandise that aligns with patron preferences, Nivea can differentiate itself from its competition and enchantment to a much wider variety of clients.

Additionally, Nivea can conquer critical threats with growing opposition and technological improvements by investing in studies and progress to create revolutionary merchandise that meets the evolving desires of clients. By staying ahead of the curve and looking forward to patron preferences, Nivea can hold its marketplace role and keep growing its market share. Nivea also can consciousness of growing an omnichannel method that leverages each online and offline channel to attain a much broader target market and make its merchandise extra handy to clients.


In conclusion, Nivea is a well-installed and professional brand withinside the skin care enterprise with a sturdy marketplace presence worldwide (Rubio, pp. 62, 2018). Through the PESTLE evaluation, it’s far obtrusive that the brand has numerous strengths, which include a various product portfolio, compliance with worldwide rules, and a focal point on sustainability. However, it also needs improvement, including the effect of converting regulations and monetary fluctuations on its operations and profitability. Porter’s Five Forces evaluation highlights that Nivea’s sturdy brand popularity and dependable purchaser base make it hard for brand new entrants to compete; however, growing opposition from installed and rising gamers stays a chance to the brand’s marketplace share (Alberti, pp. 133, 2018). Overall, Nivea’s cap potential to innovate, adapt to converting marketplace trends, and preserve sturdy brand popularity might be essential in overcoming its weaknesses and taking benefit of possibilities withinside the skin care enterprise over the following few years.


Alberti, B., Asgian, C., Caldwell, H. and DeFanti, M., 2018. A Proposed Brand Portfolio Strategy for Nivea to Gain Competitive Advantage. In Competition Forum (Vol. 16, No. 1, pp. 130-135). American Society for Competitiveness. (Alberti, pp. 133, 2018)

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