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Advantages Of Unilever

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Unilever, founded in year 1929 through the merging of Margarine Unie and Lever Brothers, has expanded their business to various sectors and is greatly influence by its task environment which is competitors (Unilever 2015). One of Unilever’s greatest competitors is Nestlé, and in order to stay competitive, Unilever has possesses competitive advantages which enable the company to gain advantage over its competitors. Competitive advantage can be defined as the capability of a business firm to compete others through efficiency and effectiveness to produce better goods and services (Waddell, Jones and George 2013, 21).
Unilever’s sensitivity towards customers’ demands becomes one of its competitive advantages. In response to customers’ concerns of a healthier and safer lifestyle, Unilever creates new products and add values in their existing brands which enable customers to enjoy food, health and life (Simon 2012). For example, Unilever produced their ice-creams by adding proteins extracted from Arctic animals and plants in order for customers to enjoy soft and frost-free ice-creams (Bowonder et al. 2010, 22). As a result, Unilever’s hand-held ice-cream brands, Magnum and Cornetto, were the top-selling brands in the current …show more content…

With their strategy of ‘Popularly Positioned Products’ (PPPs), Nestlé applied their technology to create nutritious products with reduced costs and proper size. As a result, Nestlé entailed 3950 different products and increased market penetration, as well as generated 11 billion Swiss francs in 2010 through worldwide sales (George, McGahan and Prabhu 2012, 663). Besides that, Nestlé proudly presented its innovative product, Nespresso, which gave customers a new way of preparing coffee in the form of capsules. Nespresso successfully achieved 11 prestigious Red Dot Design Awards, 2 iF Product Design Awards and 4 Good Design Awards (Nestlé Nespresso SA

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Evidenced by both Nestlé and the beer industry that spent intensively in advertising, the former is catching up Ice-Fili’s market share while the latter is currently enjoying increasing market demand. Thus, it is feasible for Ice-Fili to invest massively in advertising through TV or packaging to position itself as a historical Russian brand that produce ice cream made of high quality natural ingredients. This could differentiate itself from regional producers that have low

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In order to analyse what extent Tesco U.K’s performance is attributa-ble towards industry characteristics, Porter’s five forces are broken up into competition, potential of new entrants, power of suppliers, power of customers and the threat of sub-stitute products. Below is an image of Porters 5-forces in relation to the U.K supermarket industry. 1. Rivalry amongst competitors The intensive rivalry in the U.K’s grocery sector is remarkably high.

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The food industry is expected to grow rapidly in the future due to improving lifestyle and rapid urbanization (“Global Fast Food Market”, 2017). With this potential demand created, KHC can easily capitalize the growing foodservice industry and tailor their products to the specific demographic (Bhasin, 2018). Another strong resource KHC can utilize is focusing on nutritious products. As the foodservice industry continues to grow, KHC should further explore on expanding its product portfolio to include healthier options. Natural and organic brands, as well, as small labels buying from local farms, have become an essential part of the consumer lifestyle (Tarkan, 2015).

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The used of Unilever’s portfolio of categories, channels and geographies is to discover the growth and profitability throughout the period of time. Hence, Unilever Plc should make best investment decisions. Customer Relationships Successful customer relationships are vital to their business and continued growth. Maintaining strong relationships with customers is necessary for Unilever brands to be well presented to their consumers and available for purchase at all times. The strength of their customer relationships also affects their ability to obtain pricing and secure favourable trade terms.

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Firm Infrastructure Unilever is a global company therefore they have a strong financial backup to focus on high quality food solutions with continuous value addition • Helps to invest in premium products and services • Enough funds for continuous innovation Human Resource management Retention of skilled employees through a total rewards system to retain the consistency of quality of products and services • To remain a consistent quality in premium products and service. Technology Using premium technology solution such as SAP ERP to track quality throughout the supply chain. Further to deliver the products on time.

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Unilever is one of the world’s oldest multinational companies. Its origin dates back to the 19th century when a group of companies, the soap and margarine independently produced. In 1930 the company joined in 1940 to form Unilever diversified into food products through the next five decades, he has developed as a major fast moving consumer goods (FMCG) multinational operation in several companies. In 2004, Unilever has set 2010 strategic plan into action with the order, "vitality, the life" and "to meet the daily nutritional requirements, hygiene and personal care with brands that help people feel good, look good and more

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Many changes of the ageing population lead to several threats for Unilever. Firstly, the structure of demand in future is likely to be changed. Unilever has to meet special needs and desires from older people. For example, greater and greater demands for frozen “ready meal” by older people that the company has to deveplop their products to satisfy customers (Ahlgren, Gustafsson and Hall,2004). Besides, there may be lack of labour in the future.

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Unilever recognises that it cannot cater to needs of all the consumers present in the market. Consumers are present in a very large number in the market place and they vary greatly in their needs and buying behaviour. Companies also are well aware that themselves vary greatly in their ability to serve various segments of the market place. Unilever is no different from other companies in this regard. It recognises that it is far better for it to cater to certain segments that it can serve the best rather than attempting to cater to the needs of the entire marketplace as a whole.

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