Unilever is a London-based fast-moving consumer goods company that sells its products in nearly 200 countries. However, it is neither the largest packaged consumer goods or food company as it has fiercely competitive rivals. In recent years, new corporate leadership has instituted changes, including a new mission and a new vision. These have resulted in a more positive relationship with consumers, a better public image, and an increasing presence in developing countries. Still, our strategic analysis of the company shows impending threats that can damage Unilever’s margin of profit and global stake in the fast-moving consumer goods industry. New brands, mounting competition, and an increase in taxation and regulations are mounting obstacles to Unilever's continued success. In order to overcome these and other future vulnerabilities, Unilever needs to continue its product and information technologies developments, introspection, campaigns, and external monitoring.
Company Profile
Unilever is an Anglo-Dutch company that consists of over 400 brands “focused on health and wellbeing” (Unilever, 2013a). Unilever sells its products to more than 190 countries and belongs to the fast-moving consumer goods (FMCG) industry. Specifically, it is the second largest packaged consumer goods firm after Proctor & Gamble (P&G), and it is the third largest food company after Nestle and Kraft Foods. While Unilever is based in London, England, it sells food, home, and personal care products over all major continents. Unilever was formed when the Dutch margarine company Margarine Unie merged with the British soapmaker Lever Brothers in 1930. The two companies decide to combine since they were often competing for the same raw materials, oils and fats, to make their products. Today, Unilever has adopted a new mission to
Table of Contents
1. Executive Summary
2. Company Profile
3. Strategic Analysis
3.1 PESTEL Analysis
3.1.1 Political & Legal Analysis
3.1.2 Economic Analysis
3.1.3 Social Analysis
3.1.4 Technological Analysis
3.1.5 Environmental Analysis
3.2 Porter’s Five Forces Analysis
3.2.1 Threats of new entrants
3.2.2 Threats of substitute products
3.2.3 Bargaining Power of Customers
3.2.4 Bargaining Power of Suppliers
3.2.5 Industry Rivalry
3.3 Situation (SWOT) Analysis
Objectives and Focus Areas
The primary objective of this report is to evaluate Unilever's current strategic position and identify future directions by examining internal and external factors. The analysis seeks to address how the company can navigate market competition and economic volatility while maintaining its focus on sustainable growth.
- Macro-environmental analysis using the PESTEL framework.
- Industry-specific assessment through Porter’s Five Forces.
- Internal and external evaluation via SWOT analysis.
- Identification of strategic risks and growth opportunities for Unilever.
- Strategic alignment of corporate vision with operational performance.
Excerpt from the Book
Technological Analysis
Since the 1950’s Unilever has internally focused upon research and development. This focus continues today as the company tries to minimize cost through information technology (IT) efficiencies. Specifically, Unilever is using IT to broaden its internet presence and e-business as well as its electronic fulfilment processes. It also is building IT platforms to protect itself against misuse, misuse of information, and disruption of internet business infrastructure (Clark, 2012). While Unilever pursues IT developments to minimize costs, its research and development unit continually works to improve its products and assure a positive impact. Areas in which increased concentration should be focused include genomics, advanced bioscience, materials science, and nanotechnology (Unilever Communications, 2013).
Chapter Summaries
1. Executive Summary: Provides an overview of Unilever's current business landscape, highlighting recent leadership changes, mission updates, and the identification of impending market threats.
2. Company Profile: Outlines the historical formation of the company through the merger of Margarine Unie and Lever Brothers and details its current global standing in the FMCG industry.
3. Strategic Analysis: Explains the necessity of strategic examination to determine future business direction using three specific analytical frameworks.
3.1 PESTEL Analysis: Investigates the external macro-environmental factors, including political, economic, social, technological, and environmental influences, that impact corporate strategy.
3.2 Porter’s Five Forces Analysis: Assesses the industry structure by analyzing threats from new entrants, substitutes, competitive rivalry, and the bargaining power of suppliers and customers.
3.3 Situation (SWOT) Analysis: Synthesizes internal strengths and weaknesses with external opportunities and threats to provide a comprehensive view of the company’s competitive standing.
Keywords
Unilever, Strategic Analysis, PESTEL, Porter’s Five Forces, SWOT, Fast-Moving Consumer Goods, FMCG, Corporate Strategy, Market Competition, Sustainable Sourcing, Information Technology, Business Development, Global Economy, Brand Portfolio, Corporate Vision.
Frequently Asked Questions
What is the fundamental focus of this report?
The report focuses on evaluating Unilever’s strategic business position through a rigorous examination of internal and external factors that affect its performance and future growth.
What are the central themes of the analysis?
The central themes include competitive rivalry, the impact of macro-environmental changes, the effectiveness of corporate social responsibility, and the role of technological innovation in cost management.
What is the primary research goal?
The goal is to determine Unilever's future direction and identify the best prospective pursuits to maintain a competitive advantage in the global consumer goods market.
Which scientific methods are applied in this work?
The work employs three standard strategic management frameworks: the PESTEL analysis for macro-factors, Porter’s Five Forces for industry competition, and the SWOT analysis for internal and external situational awareness.
What does the main body of the document cover?
The main body covers a comprehensive audit of Unilever’s business environment, ranging from political and legal challenges to technological infrastructure and supplier relationships.
Which keywords define this document?
The document is defined by terms such as strategic analysis, FMCG, PESTEL, Porter's Five Forces, SWOT, and corporate sustainability.
How does the author view Unilever’s mission to "create a better future"?
The author identifies this mission as both a strategic strength for branding and customer loyalty, but also as a potential internal weakness because it requires significant financial and operational resources.
What role does IT play in Unilever’s current strategy?
IT is used primarily to minimize costs through process efficiencies, enhance electronic fulfillment, and protect the company against data security threats while broadening its internet presence.
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- Richards Macdonald (Autor), 2012, Unilever. A Strategic Analysis, Múnich, GRIN Verlag, https://www.grin.com/document/215742
