UNILEVER Case Solution & Answer

UNILEVER Case Solution 

Threat of Substitutes:

The business operates in four segments of the industry that are food, beverages, personal healthcare and healthcare products. The product portfolio of the company is quite diverse and numbers roughly above 400 brands and products in its product portfolio. There are several competitors of the company in the markets where the business operates and the product portfolio of these organizations matches with the business as well. The P&G Company is the main competitor of the business in the industry and the products that it offers to the customers in the markets are a substitute to the products which Unilever offers to the customers. Due to this reason, the threat of substitutes is high for the company.

Bargaining Power of Buyers:

The industry is highly fragmented with the presence of multinational as well as local companies in the markets and due to this reason, the markets are flooded with several alternate products of the product that the company offers and this has greatly empowered the customers in a sense that they have diverse options to choose from while shopping in the markets. This has increased competition among the organizations in the industry and they are striving to attract customers for their products by adopting various differentiation as well as cost based strategies. Due to this reason, the bargaining power of customers is quite high in the industry.

Bargaining Power of Suppliers:

The scales of operations of the multinational organizations and the internal contests between the suppliers in the markets have reduced their bargaining powers considerably. The managements of such large scale companies have numerous sources to acquire their materials from and often contracts for supply of materials are based upon bidding and negotiation procedures and this significantly reduces their strengths to quote maximum prices.

Competitor Analysis:

Unilever is one of the top three companies of the industry and the competition in the global food consumption industry is highly intense. The competition is based upon the innovation based products and cost leadership strategies of the business in the attractive global markets of the world. The massive spending of businesses in the research and development process has also intensified the competition in the industry and the business is also focused on perfecting the research and development process in order to constantly improve the process while also developing newer products.(Hancock, 2004)

Direct Competitors Of The Company:

Direct competitors of the Unilever Company are the ones who are competing with the business in the food, beverages, healthcare and personal healthcare segments of the goods consumption industry. There are numerous competitors and direct rivals of the business and some of them are The Procter and Gamble Company, Nestle and the Reckitt Benckiser Group PLC. However; the fiercest rival of the business is P&G Company as it is the world leader organization of the industry in terms of revenues and margins that it generates from the markets.

Procter and Gamble Company:

Procter and Gamble is one of the most critical rivals of the Unilever organization in the industry. It is the most dominant and well performing organization of the consumer goods industry. The business structure of the company is segregated on operations in more than five segments roughly and it has more than a dozen products that generate more than a billion dollars annually.P&G also makes acid-reflux medication, filters for mineral water and dog food.(P&G, n.d)

 The most popular and prominent segments of the operations of the business are home appliances, healthcare and medication products and home appliances for consumers in the markets where the business operates. The product portfolio of P&G Company represents one of the world’s most renowned and well-known products such as Mach 3, Head & Shoulders and many more. This success of the business in the markets where it operates is due to constant product diversification as well as research and development strategy of the management of the company.(P&G, n.d)……………….

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