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Case Study: How International Business Environment Impacts Unilever

3887 Words16 Pages

C) How International Business Environment Impacts Unilever Unilever faces a very stiff competition among top performing multinational corporations namely P&G, Nestle, Kellogs or Coca-cola just to name a few. They all battle for world domination, in a very crowded competitive environment. Figure: Competitive rivalry in the fast moving consumer goods industry (FMCG) Source: HuffingtonPost.com As these organisations integrate different markets their widening and enlargement of operations often help them increase their profitability, win subsequent market shares due to the strengths of multiple business units ( with their own competitive advantage strategies) subsidiaries, established in a multitude of world local markets. Moreover, Cost saving outsourcing policies also help sustain or solidify their competitive advantage. Nike manufacturing is the perfect example of a global multinational corporations that cut cost through its outsourcing in countries like china Vietnam, Turkey or the Philippines. Ultimately selling products to foreign markets is solving the easy profit equation of globalisation/. Example of Chinese companies that have successfully implemented global policies by expanding in foreign …show more content…

The company’s performance in 2013 and 2014 shows that the results are not as good as expected due to the fact that the company battles with high operating costs to remain afloat. (This Day Live, 2014) According to RTE news (2014), emerging markets, which are the key for Unilever business, have taken a dive in recent months, with Brazil sliding into recession, China facing the worst slowdown in 24 years and Russia dealing with Western sanctions over the crisis in Ukraine. Although the company is exposed to risks in emerging market they also represent.”_(Link:

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