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SWOT Matrix for Unilever Case Study

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Updated: Dec 29th, 2023

Unilever is a leading Dutch-British multinational company (“About Unilever” par. 1). It is currently “headquartered in London, United Kingdom, and Rotterdam, Netherlands” (Zisa 12). Unilever is “known for its superior spreads, cleaning agents, food materials, beverages, and personal care products” (“About Unilever” par. 2).

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Unilever’s leading brands include “Knorr, Lipton, Hellmann’s, Blue Band, Suave, Axe and Dove” (“About Unilever” par. 2). The corporation markets over 400 brands in different nations. The firm’s products are designed to promote the wellbeing and health of its customers. The company uses a powerful business model in order to support its goals. This discussion presents a SWOT matrix for Unilever.

SWOT Matrix

Internal Environment
Strengths
  • Unilever markets its superior products in over 190 nations. The firm’s brands are admired by many consumers in these countries.
  • The company has numerous products. Such products address the changing expectations of many consumers.
  • Unilever embraces the power of Research and Development (R&D) in order to produce superior products. Such products are engineered to fulfill the needs of more customers.
  • The organization uses flexible prices for its products.
  • Unilever’s distribution channels are managed in a professional manner. The company’s brands are availed to more consumers in every corner of the globe.
  • The firm is known to “combine local execution with global thinking” (“About Unilever” par. 5). Unilever uses customized business practices in order to attract more customers in different geographical regions.
  • Every “product is given a distinctive local flavor” (Wolf 19). The important goal is to ensure more customers purchase and use the company’s superior products.
  • The company enjoys a powerful leadership structure. This structure supports various processes such as decision-making and problem-solving.
  • Unilever uses a wide range of synergies and operations in different parts of the globe. The strategy “makes it possible for the company to leverage its economies of scale” (Wolf 72).
Weaknesses
  • The company’s superior products are easy to substitute. Most of “the products marketed by Unilever have several substitutes” (Zisa 28). Many consumers in different emerging markets can be enticed to purchase alternative products.
  • Unilever operates in competitive markets. Such markets are characterized by established competitors such as Nestle and Proctor and Gamble (P&G).
  • The firm faces direct competition from various local producers in different countries (Zisa 67).
  • The “firm lacks a culturally-competent marketing strategy for different countries” (“Progress Report 2012: Unilever Sustainable Living Plan” par. 12). This gap has affected the company’s performance in different regions.
  • The company’s revenues have also been decreasing significantly within the past few years. This situation can have negative implications on Unilever’s future performance.
  • Unilever’s multi-country strategy supports every targeted business goal. However, the strategy might not work effectively in various nations. This weakness explains why the firm is currently unable to achieve most of its business goals.
  • The company’s sales and revenues have decreased within the past five years (“About Unilever” par. 4). These changes might affect the company’s future performance.
Internal Environment
Opportunities
  • Many people in different parts of the globe use Unilever’s products. They use “such products in order to improve their health outcomes and wellbeing” (Wolf 47). Such products will attract more customers in the future.
  • The organization uses sustainable methods to manufacture and market its products. Many customers are focusing on specific companies that engage in sustainable business practices.
  • The use of social media will ensure the company informs more people about its brands.
  • The wave of globalization is encouraging more companies to do businesses in new countries. Unilever can use this opportunity to open new subsidiaries in different emerging markets.
  • Some emerging economies such as India, Russia, China, and Brazil present new opportunities that can support the firm’s future performance (Wolf 68).
  • Unilever produces healthy consumer products (Haroon and Ahmed 5). Many people are focusing on the best health behaviors and practices. That being the case, Unilever will be able to market its health products to more customers in the future.
  • The corporation has a powerful corporate social responsibility (CSR). The firm’s CSR strategy has fulfilled the needs of many stakeholders. This fact shows that the firm will continue to attract more customers in the future.
Threats
  • The uncertainty of the global economy is expected to affect the performance of many multinational corporations (David and David 286). Companies such as Unilever “face the challenge of high business costs and reduced revenues” (“Progress Report 2012: Unilever Sustainable Living Plan” par. 7).
  • Unilever faces competition from emerging retailers and local manufacturers of various consumer goods. As well, foreign players in the industry pose a major threat to Unilever’s business performance.
  • The firm is required to innovate and produce new products that can fulfill the ever-changing preferences of the targeted customers. Many customers want to purchase healthy products. They “believe strongly that the use of quality products will protect them from diseases such as obesity and diabetes” (“Progress Report 2012: Unilever Sustainable Living Plan” par. 9).
  • The firm will be required to improve its products in order to make them more superior and admirable.
  • The current awareness and demand for sustainable business practices will force the company to improve its CSR strategy.

Works Cited

About Unilever. 2015. Web.

David, Fred, and Forest David. Strategic Management: Concepts and Cases, Upper-Saddle River, NJ: Prentice Hall, 2014. Print.

Haroon, Amara and Shakil Ahmed 2013, Assessing relationship among performance, managerial practices, and sales force Automation: A study on Unilever & Dalda Pakistan. Web.

Progress Report 2012: Unilever Sustainable Living Plan 2013. Web.

Wolf, Sabrina. Unilever Case Study, Munich: GRIN Verlag, 2014. Print.

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Zisa, Letizia. An Analysis of Unilever’s Legal Form, Financial Performance and Business Strategy, Munich: GRIN Verlag, 2014. Print.

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IvyPanda. 2023. "SWOT Matrix for Unilever." December 29, 2023. https://ivypanda.com/essays/swot-matrix-for-unilever/.

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