Many companies come a long way in order to reach a position that is deemed sustainable and competitive. Companies usually come up with strategies whose implementation helps them to increase their chances of surviving in the market.
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Some of the strategies implemented might work in favor of the company while others might not be successful. This paper provides a review on Unilever and Proctor and Gamble (P&G) indicating what they have done that works and what they have done that doesn’t work.
The research also notes the top competitors of Unilever and P&G and determines the impact of business relationships on long term growth.
Unilever is among the world’s leading fast moving consumer goods companies. The company offers products including foods, home products and personal care products. Unilever is a global company with presence in over 170 countries hence prides in the recognition as a global company.
Globally recognized companies like Unilever have privileges like economies of scale and access to global resources. Moreover, Unilever has created a strong relationship with merchant by offering reasonable margins and incentives.
This has worked for the company because it has been able to reach the consumers on the ground. Unilever has also done mass scale production which has enabled the company to overcome the bargaining power of suppliers leading to reduces production (Unilever, 2012).
Unilever has also invested a lot of money on research and development of new products and brands enabling the creation of high entry barriers to the worldwide consumer market.
Furthermore, Unilever has created a highly skilled human resource from around the world which has enabled it to understand and manage the individual requirements of the customers.
However, due to the formation of many products and brands, Unilever faces the problem of inefficient brand management. This has resulted in the realization of fewer returns than expected.
Proctor and Gamble Company is a top manufacturer and promoter of branded consumer packaged goods across the globe. The company prides in the manufacture, promotion and distribution of beauty and personal care products.
Ariel and pampers are some of the leading brands of the company. Over 180 countries enjoy the highest quality products from Proctor and Gamble. Just like Unilever, P&G has developed many strong brands into the market leading to the acquisition of numerous profits.
Moreover, the safety and quality of products are very important to the company which has led to the improvement of the lives of global consumers. The quality of products has ensured continuous success in all business activities.
However, the company depends heavily on mature markets while neglecting emerging markets. This practice is likely to leave the company in a vulnerable position in the future (The Proctor and Gamble Company, 2010).
Both Unilever and P&G have gained sustainable growth over the years through hard work and commitment. It is almost impossible to remain in the market without facing stiff competition.
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The top competitors of the companies include Johnson and Johnson, Nestle, Kimberly-Clark Corporation and Mars Incorporated. This healthy competition enables the building of strong business relationships which enhances long term growth.
Competition is an essential business relationship which ensures the production of high quality goods at lower prices in order to win consumer acceptance and support.
Moreover, a good business relationship between companies enables them to learn from each other through their successes and failures. Companies are in a better position to become more successful through avoiding past mistakes.
Both Unilever and P & G are very successful global companies. The companies have gained sustainable growth over the years and are quite similar in their business models and practices.
The stiff competition between the two companies has led to the development of high quality products and brands all over the world. The high quality products and brands have benefited them by ensuring that they acquire the acceptance and support of consumers.
The two companies also face competition from other global companies. The competition has made them to come up with strong strategic plans in order to outshine any competition.
The Proctor and Gamble Company. (2010). Our Worldwide Business Conduct Manual. Web.
Unilever. (2012). Making Sustainable Living Commonplace. Web.