Final Project

BBA 499C-301

Dr. Mohamed

March 10, 2023

Unilever, Plc

Presented by:

Anna Jaco Matthew Chevalier Jared Thompson Benjamin Abner Makayla Parsons
 Table of Contents

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1 Table of Contents

2 Table of Contents

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17 Analysis of Business-Level Positioning Strategy: Overall Positioning

18 Functional Strategies/Core Competencies

19 Competitive/Cooperative Dynamics

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 External Analysis

General Environment

The general environment comprises seven environmental segments that influence an

industry and the firms that operate within it. These segments include demographic, economic,

political/legal, sociocultural, technological, global, and sustainable physical (Hitt et al., 2020, p.

39). Each segment encompasses trends firms must adhere to and follow to increase the firm's

survivability.

Demographic Segment

While scanning the environment, three trends emerged in the demographic segment that

will come into play in the foreseeable future: changing lifestyles (more singles, couples, and

unconventional families), more diversity, and an aging population (F. Wallace, 2018). First,

changing lifestyles make it more difficult for retailers to predict shopping patterns. Packaged

products must be available to accommodate single-person households and larger households. To

be successful, firms must create value propositions to combat the changes in the traditional

family. Second, the world population, especially the population of the United States, is becoming

more diverse. Evidence points to more than 50 percent of children in the United States will be a

member of a minority ethnic group, and the population as a whole will have a majority of

minority ethnic members by 2044 (Hitt et al., 2020, p.45). Lastly, the aging population threatens

the number and knowledge of the workforce. Twenty-five percent of the world's population will

be age 65 or older by 2050. These trends challenge the firm's productivity and future.

Economic Segment
 Economic trends that will affect the success of a firm are rising interest rates and

inflation, a slowing economy, and a shift in customer spending. The Covid pandemic has

resulted in the emergence of these three trends. When interest rates increase, there is a negative

impact on the stock market, which influences trade globally. Higher interest rates make credit

card debt more expensive and change how banks structure short-term loans (B. O'Connell,

2023). According to forecast models, the United States GDP will slow to 0.9% in 2023 (2023

Retail Industry Outlook, 2023). Rising inflation and interest rates create uncertainty and

drastically reduce consumer spending. Consumer prices have tremendously increased in 37 of

the 44 top advanced global economies. Consumers have shifted spending toward services like

sporting events and vacations, which will affect stores that focus on selling consumer goods

(2023 Retail Industry Outlook, 2023). These trends will likely lead to less revenue and fewer

profits.

Political/Legal Segment

When conducting business globally, firms must abide by laws that govern each country,

nation, or state. Regulations and laws are continuously changing, and firms must change how

they do business to avoid conflicts with the government. Consumer products must follow strict

guidelines enforced by government organizations like the Federal Drug Administration and the

European Commission to reach store shelves. (Ema, 2023). A firm's relationship with

governmental laws and regulations creates a vastly complicated environment to oversee

business.

Sociocultural Segment

The morals and values of an area can affect all aspects of the firm. There are many

different religions worldwide, and firms need to keep this in mind when conducting business.
What satisfies morals and values in one country may be the exact opposite in another. Societal

values have changed not only significant in the United States but around the world as well. A

global public relations firm survey shows workers and consumers favor pro-LGBTQ businesses

(R. Picciotto, 2022). Another social trend occurring is the diversity of the workforce.

Immigration and those seeking asylum from their home countries lead to minorities playing a

massive role in the workforce. Diversity in the workforce can lead to challenges, and whether a

firm manages this aspect can lead to whether it becomes a problem or an opportunity.

Technological Segment

Technology is constantly evolving and changing the business world. The three main

trends in technology that firms must consider are the advancement of AI, increased use of

robotics, and e-commerce. Artificial intelligence will allow businesses to use its power as a

control to develop more suitable products (B. Marr, 2022). With the threat of a shrinking labor

force and the inability to retain quality workers, robots will have an even more significant impact

than in years past. Over the past few years, due to the Covid pandemic, businesses have focused

their business strategy on e-commerce. Focusing on e-commerce creates value for the customer,

allowing them to make purchases through an application on their phone while saving time and

the hassle of in-store shopping.

Global Segment

Several trends have emerged that will influence trade and create uncertainty in global

markets. These trends include the push for more efforts to curb the negative effects of climate

control, weakening global economy, and ongoing conflict between Russia and Ukraine (Goulven

et al., 2023). Countries around the world are adapting measures in business and government to

regulate emissions and other harmful practices that lead to changes in our climate. After the
emergence of Covid, even the most strongest economies continue to suffer due to high inflation

and interest rates. Also, global conflicts like Russia and Ukraine disrupt supply channels and

increase energy cost for all industries.

Sustainable Physical Segment

In the world we live in today, consumers are more concerned with the sustainability of

firms and the impact they have on the environment. Consumers look for more transparent firms

that don’t only say but show how they are improving our world (G. Gill, 2022). Online sales

have grown tremendously in the last several years leading to more carbon emissions due to

delivery systems adopted by different businesses. This growth is now influencing businesses to

explore and implement more environmental delivery methods. Firms also are moving toward

reducing packaging waste, a problem that is rising due to the increased use of e-commerce.

Companies around the globe are continuously researching ways to be more sustainable.

Segments With the Most Influence

All segments of the general environment are detrimental to the success of Unilever.

Unilever controls its sustainable, sociocultural, technological, and political/legal elements. The

strategy of the firm can control these aspects of the general environment. Observing Unilever's

profile show it is committed to improving the planet's health and people and developing a more

socially inclusive company focused on emerging new technologies that give it a competitive

advantage in the industry. Segments that carry more importance for Unilever include the

demographic, economic, and global segments. These segments can be monitored and forecasted

but are out of a firm's control. Ongoing conflicts, uncertainty in the global economy, and changes

in demographics can occur at any moment. Unilever must focus its resources and capabilities on

improving strategies that help diffuse changes in these segments as fast as possible.
The Five Forces of Competition

Threat of New Entrants

Firms, over time, develop barriers to entry to discourage potential competitors. Low

switching cost allows customers to find substitutes easily, but Unilever's product popularity

weakens this impact. Unilever creates a competitive advantage due to its high economies of

scale. Unilever keeps product costs low and production high due to its large workforce (148,000)

and manufacturing capabilities (280 factories worldwide) (Unilever PLC, 2023). Unilever creates

product differentiation due to its marketing techniques and R & D teams. Unilever spent 847

million dollars on R&D in 2021 (Unilever PLC, 2023). Unilever has a great source of capital to

the market, develop, and create an advantage for its products. In 2020, Unilever had a cash flow

of 6.4 billion dollars (Unilever PLC, 2023). Unilever has a substantial global network of

warehouses (450) that allow them to deliver products to millions of retail outlets. Unilever

purchases 21 billion dollars of raw materials each year to create products, and this access to raw

materials creates a cost disadvantage to competitors.

Bargaining Power of Suppliers

Suppliers pose a considerable risk to the success of Unilever. Suppliers dictate the level of

supply of Unilever. Unilever's entire operation is dependent on its suppliers. Unilever has over

53,000 suppliers in around 150 countries that provide raw materials crucial to product creation

(Unilever.com). If a disruption occurs in Unilever's supply chain, production will suffer, and

product availability to the consumer will decrease.

Bargaining Power of Buyers

With any firm, business success is highly correlated with how consumers react to its

products. Some of Unilever's strong competitors include Proctor & Gamble, Johnson & Johnson,
and Nestle (Heart of Codes, 2020). Competing firms keep switching costs low, increasing

buyers' bargaining power. Consumers can gain a great deal of knowledge about products through

social media advertising, which can influence them to try different products. Due to low-

switching costs and the availability of product information, the bargaining power of buyers is

one of the most vital forces that will affect Unilever's Business.

Threat of Substitute Products

Product substitutes can reduce a firm's profits and limit its power in the industry. Low-

switching costs create a disadvantage for Unilever, and consumers can easily switch to other

products. Still, the impact is minimal due to the high popularity and success of Unilever's brands.

For instance, Ben & Jerry's Ice Cream (Unilever product) may be higher in cost compared to

Wal-Marts great value brand, but the image of the ice cream outweighs the cost. Unilever's

marketing of products makes them more attractive than competing brands and potential

substitutes.

Intensity of Rivalry Among Competitors

Unilever has many competitors, both large and small. More prominent competing firms

include Proctor & Gamble and Johnson & Johnson. Many competitors create an intense rivalry,

and aggression occurs between firms to gain a larger market share. Firms that develop similar

products will always face fierce competition as each company hopes to create more value for the

consumer. Again, the low-switching cost creates intensity and allows firms to become

competitive.

How Attractive is the Industry?

Using the five forces model, the intensity of rivalry among competitors, the bargaining

power of buyers, and the bargaining power of suppliers are issues that pose a threat to Unilever's
operations. The threats of new entrants and the threat of substitutes remain low and will have

little effect on Unilever. Unilever must use its resources to create long-term success and continue

to appropriate funds for R&D and product innovation. The industry in which Unilever competes

is competitive, but the threats of new entrants are minimal. Unilever's biggest threat is its current

competitors. Barriers to entry created by Unilever make the industry less attractive to new

entrants, but its competition is fierce due to tremendous profit opportunities.

 Internal Analysis

Unilever is a British multinational consumer goods company with headquarters located in

London, England. Unilever currently distributes to over 190 countries and distributes over 400

different brands like Dove, Knorr, Hellmann’s, Lipton, and Ben & Jerry's. Recently in 2022,

Unilever has chosen to stray away from its matrix structural organization and go into a more

category-focused business. “This type of structure is known as a ‘functional’ or ‘divisional’

structure whereby an organization is divided up according to focus areas” (Organimi). This

structure means the company along with the products are separated into categories like home

care, personal care, and food & beverage. Unilever’s employees are more likely to be involved in

their work and care more about the outcomes of their work as each business section runs alone

meaning if the employees don’t perform adequately the business will not meet goals. Dividing

the work into divisions allows for easier and faster business, it enables Unilever to manage the

development, manufacturing, distribution, and sale of its consumer goods. Along with the

divisions for its products, Unilever also has executive teams for different sections like marketing,

finances, human resources, research & development, etc.

For marketing, Unilever employs the cross-marketing strategy to succeed in getting

customers from its competitors. This is done by providing their products at a lower price in the

market than their competitors. Unilever’s biggest competitor is Procter & Gamble, an American

multinational consumer goods corporation. “P&G generates roughly 45% of revenues from

North America versus about 30% at Unilever. That makes sense, given that P&G is based in the

United States. In Europe, Unilever's home base, the two generate around the same percentage of

sales, hovering in the low 20% space” (Brewer). Although P&G tends to have more sales in the
US compared to Unilever because it is based in the US, Unilever makes up for the loss in sales

by going to emerging economies. In these emerging economies Unilever has around 45% of the

sales while P&G only has 30%, making up for the sales P&G makes over Unilever in the US.

Strengths

Unilever is part of the fast-moving consumer goods services and operates globally.

Unilever offers beauty and personal care products, food and refreshments, and home care

products. They provide to consumers globally in over 190 countries carrying over 400 of our

everyday brands like Dove, Knorr, Hellmann’s, Lipton, and Ben & Jerry’s. Unilever's main goal

is to provide its services at a lower price than its competitors, while still ensuring good quality

products and services. Unilever combines global thinking with local execution, which means

using a global strategy to win over consumers who would like to use their products that are

globally famous yet still have a distinct local flavor. They want to provide the best possible

product for consumers at a better price than their competitors while still remaining authentic. An

advantage of Unilever’s organizational structure is its support for development and innovation.

Unilever is in competition with many large companies we use every day like P&G,

Johnson & Johnson, and Nestle. Unilever uses a cross-market strategy in order to get consumers

to choose them over their competitors, this strategy means proving their products in the market at

a lower price than competitors. Unilever has a distinctive advantage over one of its top

competitors P&G because of its flexible pricing and expertise in distribution channels that

manage to reach the small corners of the world allowing for distribution to anyone anywhere.

They have a deep and broad portfolio of brands and a diversified product range, which positions

Unilever to be better suited to the changing consumer preferences across the world. Even in the
recent challenging macroeconomic conditions, Unilever sales have continued to grow, in 2022

the underlying sales growth increased by 9% (Unilever).

Unilever has a heavily funded research and development department that manages to

bring innovative and cutting-edge products to the market that fit customer preferences. This

helps with one of their biggest strengths for penetration in the global market which is the

diversification of their consumer products. Unilever distributes its goods to over 200 countries

today, meaning they have to meet the needs of over 200 different markets which shows its

strength in marketing and meeting its consumer's needs.

Weaknesses

Unilever operates globally which means it competes in one of the largest competitive

markets, they compete with other large fast-moving consumer goods companies like P&G and

Nestle. Unilever’s products are easily and quickly imitated which means other companies can

make the same products and potentially distribute them at a better price for consumers. They

operate in a market segment where local products and alternatives to its products are constantly

emerging especially from smaller more local markets which may be able to offer more value for

a lesser price without the associated costs Unilever incurs doing business globally.

Unilever has a decentralized matrix structure organizational system which means it has

both a hierarchical and functional structure. The company is divided into several business

segments like personal care, home care items, food, and beverage each with its own divisional

management team. This system leads Unilever to a disadvantage as it offers minimal support for

regional strategic implementation. Although they include geographic divisions in their structural

features, the company solely focuses on product-type divisions resulting in limited support for

market-specific or regional strategic reforms.

 Unilever depends highly on its suppliers to provide the product to the consumers, as they

are a distribution company. This leads to another weakness in their business as they are solely

dependent on their supplier to make the product and they will distribute it. This leads to a lack of

impressions made directly to the consumers by Unilever, they are just seen as a middleman for

getting the product from distribution to consumers. As a company, you want to be able to make a

strong impression on the consumers as they are the ones supporting the business with their

purchases. Unilever has a very imitable business as they are just distributors for other businesses'

products which has them at a high risk of competitors being able to provide the same services at

a lesser price.

VRIO

Unilever has many competitive advantages in the market, the largest being the

globalization of their business, Unilever has entered over 190 countries and continues to expand.

This offers a huge value to the company as entering these emerging economies allows Unilever

to get consumers that no one else has touched yet, offering a large new consumer base. This

expands their distribution network eventually ensuring greater revenues for the company. The

drive to expand into new markets offers them a competitive advantage over their competitor

P&G who only receive 30% of their profits from small emerging economies while Unilver

receives 45%. If Unilever continues to enter emerging markets this will be a sustainable

advantage for them.

Unilever has strong financial resources which are organized to capture value. Strong

financial resources are rare to find and only a few companies in the industry have them, thus

offering a competitive advantage to Unilever. They use their resources strategically to invest in

the right places, making use of opportunities and combatting threats. Unilever's financial
resources are highly valuable to the company, as they help invest in external opportunities that

may arise. Unilever's financial resources prove to be a sustainable competitive advantage.

Unilever employees are another resource that is valuable to the business. They are highly

trained which leads to high productive output for the organization. Unilever also enforces

divisions within its employees so each employee has a specific job leading to high productivity

throughout the association. Unilever employs sections for marketing, research, manufacturing,

distribution, and finances, and even has separate people for each section of goods they sell.

Unilever offers their employees a good work environment and pays which leads to loyalty from

their employees. Loyal employees are rare in many industries, especially highly trained and

skilled employees who create high-performing organizations. Unilever employees are a

sustainable competitive advantage for the organization.

The distribution network of Unilever is highly organized. This resource is used to reach

out to the customers to ensure the products are available in all of its outlets. Within this

distribution network is marketing designed to target each outlet location specifically to make

sure the target market is reached. Unilever has strong marketing and distribution sections in their

organization resulting in high productivity in sales.

Analyze corporate level-strategy:

Unilever’s mission statement is “Our purpose is to make sustainable living

commonplace.” It also adds “We believe that the winning businesses of tomorrow will be those

which anticipate and respond to the huge changes shaping people’s lives across the world. The

businesses that will have the greatest success are those which capitalize on the power of data and

biotechnology; adapt to shifting consumer needs; and contribute to tackling the twin challenges

of climate change and social inequality.

Our Vision is to deliver winning performance by being the global leader in sustainable business.”

Unilever boasts over 400 brands, 14 of which had sales of over 1 billion dollars in 2022.

Unilever’s strategy is split up into 4 points: 1. “We will build a high profile growth portfolio

across five business groups: We will build our position in Beauty and well-being, Personal Care,

Home Care, Nutrition, and Ice Cream.” Unilever will take more aggressive action in those

groups so they can achieve growth in those areas. Unilever owns brands like Sunsilk, Dove,

Comfort, and Ben & Jerry’s. Those brands will likely be ones that will be looked at for growth.

2. “We will win with our brands, powered by superior products, innovation, and purpose: Our

brands will be built on advanced science and will grow by delivering functionally superior

products, as well as taking action on social and environmental issues that our consumers care

about. They will improve the health of the planet, improve people’s health and wellbeing, and

contribute to a fairer, more socially inclusive world.” This point shows further that Unilever

brands share resources as well as information/knowledge. This also reinforces focusing on the

health and well-being brands in the company. 3. We will accelerate in key growth markets: We

will sharpen our focus and investment in our key growth markets, while further strengthening

our leading positions across growth markets where we are uniquely positioned to win.” Their

strategy is focusing on the competitive advantages the company may have. It also refers back to

the first point by restating the company's plan to focus on key growth markets as well as

strengthening their positions in others. 4. We will lead in the channels of the future: We will

capture the opportunity in eCommerce, pioneering with innovative routes to market, and leading

with shopper insights which help to drive our growth and build strong relationships with our

customers.” Unilever is looking to continue innovating by looking to new trends. eCommerce

can help Unilever sell its products possibly directly to consumers and shopper insights will help

Unilever tailor their marketing and products to their target customers.

This strategy has changed over the last 30-40 years. Unilever was heavily investing in

acquiring new brands. Unilever’s main focus was acquisitions instead of building the brands they

already had. This changed in the 1980s when Unilever led a massive change of strategy.

Unilever started to focus more on growing their current brands than acquiring new ones. As a

result, Unilever began divesting into weaker areas while looking to core areas to deliver growth.

This strategy is very similar to the one previously discussed. It is evident Unilever has had

success in sticking to successful groups and they shouldn’t move away from this strategy.

There are definite gains to be had from this strategy. Unilever could stand to gain the

most in focusing on the 5 select groups (Beauty and well-being, Personal Care, Home Care, and

Nutrition and Ice Cream). As previously mentioned, some of their best-known brands belong to

those groups and Unilever looks to those to deliver significant growth. Embracing eCommerce

will also help Unilever take advantage of innovation. eCommerce may allow Unilever to sell its

products directly to its customers without having to go through middlemen like retail stores.

Financial Ratios

Profitability Ratio

Gross profit margin: Revenue (earnings before deductions) 11408 million-

Operating profit ‘22- 10,755 million

Operating Margin ‘22-17.9%

Operating profit ‘21-8,702 million

Leverage ratios—the degree to which a firm relies on debt versus equity (capital structure)
). • Liquidity ratios—a firm’s ability to pay off its short-term obligations

Market ratios—returns earned by shareholders who hold company stock.

Analysis of Business-Level Positioning Strategy

Overall Positioning

Unilever’s overall positioning strategy is extremely intricate due to it being an

international business with a wide variety of offerings and other complexities. Unilever’s generic

competitive strategy is primarily differentiation, but low costs are utilized in certain. (Young J,

2017) states Unilever is the overarching corporation of over 400 brands. Some recognizable

brands being Axe, Breyers, Ben & Jerry’s, Dove, and many others. Unilever has immense

differentiation not only in the brands they own, but also within those brands. Unilever

differentiates their products from competitors by doing extensive market research and identifying

what components customers value. They then implement their findings to create superior

products that customers value. For example, they identified a need for body soap that not only

cleans, but moisturizes, the skin. Then they created a dove soap bar that was designed for those

with dry skin. Another example of how Unilever’s products differentiate from the market is Ben

& Jerry’s offering a wide array of flavors from vanilla to pumpkin cheesecake. However,

Unilever controlling over 400 brands means many diverse approaches are necessary to be

successful. Unilever uses low costs in its overall positioning strategy for “Breyers” ice cream and

“Popsicle” products. Both brands typically position themselves below the market median in

comparison to related products. According to (Marketing Week, 2014), Unilever’s president of

home and personal care stated that “vitality is at the heart of all its brand positionings.” It is clear

the generic competitive strategy of differentiation aligns best with Unilever mission and vision
statements to create superior products that deliver nutrition, hygiene, and personal care in a

sustainable way.

Functional Strategies/Competencies

Unilever’s positioning strategy is strongly supported by its functional strategies. The

functional strategies of Unilever that contribute most to its competitive advantages are superior

efficiency, quality, innovation, and customer responsiveness. These functional strategies are

precisely applied and maintained depending on the specific market and product. All these

functional competencies are crucial to the longevity of Unilever. Unilever displayed their

superior efficiency when they pledged to reduce food waste from their factories to the shelf by

half by 2025, per (Kashish M, 2023). Unilever green initiative reduces greenhouse gas emissions

and waste contribution. Quality and customer responsiveness go hand-in-hand for Unilever.

Through their functional competency of market research, they can identify and then create a

quality product that generates a positive customer response. Another core competency for

Unilever is their social and environmental justice initiatives. Through donations, advocation, and

environmental mindfulness they have created a positive response to their brand from customers.

For example, Unilever was active on social media posting numerously about LGBTQ+ during

pride month. Unilever prides itself on product innovation. Through advanced science they create

products that offer innovative features to help prop up their positioning strategy of

differentiation. An example of this is when Unilever, through Breyers, launched “Breyers

CarbSmart” ice cream, per (Unilever, 2021). Unilever, with their competency in market and

consumer research, identified that there was a segment of consumers who wanted low carb ice

cream. These consumers being people with diabetes, health issues, or just health-conscious
people. They then used innovation in their product development to create an ice cream with low

carbs and sugar while not compromising the same great taste. It is apparent Unilever has

developed the right functional competencies to support their overall positioning strategy. They

can continue to exploit their competencies by taking action on social justice issues, constant

market analysis, science-backed product creation and enhancement, logistics optimization, and

staying true to their original values. Not only will these competencies contribute to their

differentiation strategy but also in the few areas where low price strategy is ideal. It is clear

Unilever utilizes their functional strategies to simultaneously pursue both positioning strategies

of differentiation and low cost.

Competitive and Cooperative Dynamics

Unilever’s positioning strategy is constantly adjusted based on the competitive or

cooperative dynamics of the industry. While all components of the five forces analysis are

important to consider for Unilever. The bargaining power of buyers would appear to be the most

crucial for Unilever when combatting competitive dynamics within their industries. Consumers

have low switching costs, a wide array of information, and various options. To ensure customers

continue buying Unilever’s products they must keep emphasizing innovation to create unique

value that customers are more than content with. Unilever must avoid scandals and maintain a

positive public perception to keep customers happy to shop with them. A possible external threat

to Unilever is the growing demand for organic or natural products. Most of their products

incorporate preservatives or ingredients that are not natural. To deal with this threat, Unilever

should adjust its business-level strategy by using their innovation to create natural or organic

products. This will ensure they do not lose sales to competitors from the growing segment of

consumers who value natural and organic products. Overall, Unilever is in a great position with
their strategic competencies to implement their business-level strategy to minimize competitive

forces and increase cooperative ones.

SWOT Analysis

Unilever is a large global corporation competing in the prepackaged goods industry.

Some examples of direct competitors are Proctor & Gamble, Nestle, and Johnson & Johnson.

Unilever has a cross-market strategy to provide consumers with low-cost products in the

personal care and beauty, food and refreshments, and home care product departments than its

competitors. One opportunity within the external environment is the push towards artificial

intelligence in the workplace. Currently, Unilever is using AI recruitment technology to

efficiently sort through the large number of applications the company receives year. After the

addition of this recruitment technology, the organization was able to remove about 70,000

person-hours it took for interviewing candidates (B. Marr, 2021). This reduction in person-hours

needed for selecting new employees directly reinforces the company’s strength of cost reduction.

Another opportunity in the external environment is the changing of household structures in

America. Recently there has been a decrease in the traditional household because of children

living with their parents longer or singles living alone. This trend presents an opportunity for

Unilever to create products in smaller portions to target this new household structure. According

to Farnaz Wallace, “…we’re seeing a rise in the single package food business.” (F. Wallace,

2018). Unilever would be able to take advantage of their strong research and development

department in order to create goods for this new demographic. Even though the type of products

this company manufactures is easily replicated, the research and development team would also

be able to continue making unique products for customers. Since Unilever is a part of the
prepackaged goods industry, one main threat for this company is low switching costs for

products. Consumers can easily switch from brands offered by Unilever to brands from its

competitors such as P&G. Even though this issue is present, in 2022 the company’s CEO

released a statement saying that sales increased 8.1% in the first part of the year (2022).

Next, the main strategy for Unilever is providing their products in the market at a lower

cost than competitors. One way the firm will be able to uphold this strategy is focusing on the

new technology that is being developed. An example of this technology is artificial intelligence

and robotics mentioned before. Since Unilever has already integrated some technology into one

of their departments, HR, it is time to focus on another department, manufacturing. A weakness

identified for this company was a lack of specialization of products for specific regions or

markets. Unilever could use technology to determine new products that consumers in different

areas would be interested. Unilever would be able to create customer profiles based on social

media trends such as post interactions of their customers to determine the specific needs of these

areas (S. Evans, 2022). Unilever could partner with Meta in order to gain access to the Big Data

to analyze these trends.

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External analysis (Part 1)

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https://www.forbes.com/sites/bernardmarr/2022/11/21/the-top-10-tech-trends-in-2023-
everyone-must-be-ready-for/?sh=493552747df0
O'Connell, B. (2023, February 1). What happens when the Fed raises interest rates? Forbes.
Retrieved February 22, 2023, from https://www.forbes.com/advisor/investing/fed-raises-
interest-rates/
Picciotto, R. (2022, December 13). Workers and consumers say they're likely to favor pro-lgbtq
businesses, new study says. CNBC. Retrieved February 22, 2023, from
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study.html
Unilever PLC. (2023, February 13). Archive of unilever annual report and accounts. Unilever.
Retrieved February 24, 2023, from https://www.unilever.com/investors/annual-report-and-
accounts/archive-of-annual-report-and-accounts/
Wallace, F. (2020, February 19). 6 major demographic macro trends shaping retail. Farnaz
Global. Retrieved February 21, 2023, from https://www.farnazglobal.com/perspectives/6-
major-demographic-macro-trends-shaping-retail

Internal analysis (Part 2)

Sources:

https://www.unilever.com/files/8f9a3825-2101-411f-9a31-7e6f176393a4/the-unilever-
compass.pdf
https://www.unilever.com/files/91ad891b-a5cd-4a79-823d-83b82b31615a/ir-q4-2022-full-
announcement.pdf
https://www.unilever.com/our-company/strategy/
https://www.unilever.com/our-company/our-history-and-archives/1980-2010/

Sources:

Unilever's Organizational Structure [Interactive Chart] | Organimi

Better Buy: Procter & Gamble vs. Unilever | The Motley Fool

VRIO Analysis of Unilever (case48.com)

Analysis of business-level positioning strategy used by the firm (Part 3)

Young, J. (2017, February 21). Unilever's Generic Strategy & Intensive Growth Strategies.
Panmore Institute. Retrieved February 27, 2023, from https://panmore.com/unilever-
generic-strategy-intensive-growth-strategies
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Marketing Week. Retrieved February 27, 2023, from
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Unilever. (2021, January 5). Unilever brings joy to ice cream fans everywhere with introduction
of 25 new frozen treats for 2021. PR Newswire: press release distribution, targeting,
monitoring and marketing. Retrieved February 27, 2023, from
https://www.prnewswire.com/news-releases/unilever-brings-joy-to-ice-cream-fans-
everywhere-with-introduction-of-25-new-frozen-treats-for-2021-301201113.html
Author Kashish Moolchandani Kashish M is an Undergraduate student from the Middle East.
Apart from listening songs and learning new languages and exploring different culture over
time she developed interests in writing and gained interest in ex, Moolchandani, A. K., &
Kashish M is an Undergraduate student from the Middle East. Apart from listening songs
and learning new languages and exploring different culture over time she developed
interests in writing and gained interest in exploring different parts of the accounti. (2021,
May 18). Business strategies that set FMCG Giant "Unilever" A class apart. The Strategy
Story. Retrieved February 27, 2023, from
https://thestrategystory.com/2021/05/19/unilever-business-strategy/

SWOT Analysis (Part 4)

Evans, S. (2022, December 7). Unilever on Using AI for Meaningful Change at AI Summit New
York. Retrieved March 6, 2023 from https://aibusiness.com/responsible-ai/unilever-on-
using-ai-for-meaningful-change-at-ai-summit-new-york
Jope, A. (2022, July 26). Delivering consistency in challenging conditions. Retrieved March 6,
2023 from https://www.unilever.com/news/press-and-media/press-releases/2022/
delivering-consistency-in-challenging-conditions/
Marr, B. (2021, July 2). The Amazing Ways How Unilever Uses Artificial Intelligence To Recruit
& Train Thousands Of Employees. Retrieved March 6, 2023 from
https://bernardmarr.com/the-amazing-ways-how-unilever-uses-artificial-intelligence-to-
recruit-train-thousands-of-employees/
Wallace, F. (2020, February 19). 6 major demographic macro trends shaping retail. Farnaz
Global. Retrieved February 21, 2023, from https://www.farnazglobal.com/perspectives/6-
major-demographic-macro-trends-shaping-retail