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The merger provides the company with a broader product line.
WWI provides the company with new demand in the form of government contract. After the war ends, consumer started switching the type of milk preference. Nestle was able to respond quickly to the change of demand; thus giving them a very high advantage to stay competitive in the market. In 1920, the company decided to enter the chocolate market as their second most important production. Nestle also did am unrelated diversification through their shareholding in L'Oreal in 1974.
In the later year, Nestle also focus their diversification in the ice cream market...
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