Wednesday, March 25, 2015

Unilever Business and Corporate level strategy

Unilever Business and Corporate level strategy


Unilever Business level strategy: Differentiation

Unilever achieves its competitive advantage through differentiation. Unilever focus not only on how to sell their product to customers also to meet absolute customers’ satisfaction. Nowadays, consumers are more concern with health and environment. They are more attracted to environmentally friendly products. Understand customer’s concern, Unilever develop a plan call Sustainable Living Plan. This plan has three main purposes. The first one is to “Improve Health and Well-being” by offering balanced nutrition, good hygiene and the confidence that comes from having clean clothes, clean hair and good skin. The second objective is to “Reduce Environmental Impact” by producing products which are sustainably sourced and used in a way that protects the Earth's natural resources. And the last purpose is to “Enhancing likelihood” by respecting for the rights of the people and communities they work with throughout the world. By promoting this plan, Unilever have built a strong, positive and different image to customers than any of their competitors

Unilever Corporate level strategy: Creating value through diversification

            Unilever’s diversification strategy is accomplished mostly through acquisition and divestment. Unilever has been merging and acquiring several companies throughout the years to extend its portfolio. For example, in April 2000 Unilever bought both Ben & Jerry's $326 million and Slim Fast for $2.3 billion. Unilever is also selling off or spinning off some segments of the firm’s business to enhance its competitive advantage. For example, in 2006, Unilever announced that it had decided to put the majority of its Frozen Foods businesses in Europe up for sale.
            Unilever also focuses on internal development to provide best product quality to customer. Unilever has several R&D centers that located around the world help the company to respond fast to changing needs, tastes and trends. With more than 6,000 scientists, engineers, chefs and technicians work in Unilever's R&D centers around the world - inventing new products and improving existing products, Unilever is able to bring to the best quality product and satisfaction to customers.