Unilever SWOT Analysis

Introduction

With coverage of over 190 countries and a distribution network like no other, the company has been ruling the consumer goods market all over the globe. Founded in 1929 by the merger of the British soapmaker Lever Brothers and the Dutch margarine producer Margarine Unie, the company is a complete merge of the names of its owners. The company has been leading the consumer goods market with a broad product portfolio and massive products on offer. In this report, the Unilever SWOT analysis provides an insight into how the company overcame the hurdles and became a leading FMCG company. The Unilever SWOT analysis is as follows. Be sure to read it all through to understand what you need to do to make your company a success in this competitive landscape.

Unilever's Strengths

· Global footprint and coverage. The Company operates in over 190 countries across the globe. The international footprint allows the company to cater to diverse consumers from all over the world.

· Diversified product and brand portfolio. One of the major strengths of Unilever is its broad and innovative brand portfolio, which offers many products. This diversified product range allows Unilever to be a tip brand in all consumer products sectors while catering to changing consumers' preferences.

· Fully funded research department. The company has been very focused on harnessing the benefits of Research and Development, so it has invested a lot in the initiatives. These fully and heavily funded projects allow the company to introduce new products in almost all product ranges and brands every year. The innovative and cutting-edge products ensure that customers are always on a hook.

· Flexible pricing and distributing. In a market where competitive advantage is the key to the success of a company, the Unilever administration focuses on ensuring a flexible pricing strategy with a very flexible and error-free distribution channel which ensures that the products reach each and every distributor in each and every country.

· Widespread manufacturing facilities. Unilever has over 270 manufacturing locations all over the globe. It also deals with mass product orders and ensures synergies among all departments to work at their finest.

· Glocal strategies. Unilever ensures that it addresses the consumers' concerns in every country it operates. The company has been offering a global perspective to business operations while running them with the local execution to give the products a distinct local color.

Unilever's Weaknesses

· High competition. The Companyhasbeenoperating in a market where the likes of P&G and Nestle are working. There is a lot of competition in terms of quality and pricing in the same product categories. So the company must ensure that it innovates the products while staying competitive in the FMCG (Fast Moving Consumer Goods) space.

· Changing consumer preferences. Unilever has been facing a major turn in consumer preferences across the consumers in Asia and Arica. The emergence of local products and natural alternatives hinders and hampers the company’s sales.

· Low marketing emphasis. Unilever depends on retailers in all countries to make the sales. The direct company to customers channel does not exist. The marketing strafes are not as emphasized as to attract a customer in a competitive market.

· Easy to imitate products. Unilever has a broadband portfolio. Still, its advantage turns into a disadvantage as its products are easily replicated, and even replicas are sold as well in countries of Asia where local manufacturing doesn’t occur. You can find Dove and Rexona replicas all over SouthEast Asia.

· Lack of diversification. Although the company already has a broad product mix, it offers a diversified range of products outside the consumer industry, so it is limited to only one sector.

Unilever's Opportunities

· Blooming market in Asia. Unilever has a blooming market to target in Asia, where the population is soaring, and the people are opting for mass consumerism. The company reported sales of 12 billion euros in Asia, which has shown an increase of 5.7 percent in the first three months of 2022.

· Affordability. Unilever offers a very flexible pricing strategy, making it one of the most affordable consumer brands.

· Increasing product demands of health-conscious people. For Unilever, the best opportunity to target a niche market are to offer project which caters to the needs of the health-conscious people. Unilever products can be a considerable consumer choice for people who like health supplements, health and hygiene products, etc. Unilever must invest in the health supplements industry to address these health-conscious customers.

· Emerging consumer markets due to globalization. Apart from America and the EU, global media proliferation has allowed Unilever to attract global consumers.

· High CSR activities rate. Unilever has kept a good focus on the CSR activities involving its employees, environmental responsibility, and ethical concerns regarding the sustainable production and recycling of plastics.

Unilever's Threats

· Increasing government regulations across the globe. Unilever has to abide by the government regulations of Zero Plastic or plastic-free production to operate in certain countries, which is a big issue for the company.

· Global inflation and currency fluctuation. Unilever has a global footprint, so inflation and fluctuation in the currency rate impact the company's pricing, which is often hard to understand for the consumers.

· Competition from Nestle and P&G. Despite recording an increase in income in 2021, the company is still facing a lot of competition and a drop in sales due to the competitors like Nestle and Proctor and Gamble. Investing in innovation and marketing is necessary to attract more consumers.

Unilever SWOT Analysis Mind Map

The Mind map is given as follows to offer a highly comprehensive yet detailed Unilever SWOT analysis for the consumer. Globalization has opened doors of opportunities for Unilever, but innovation and product diversification is still needed to counter the competition in the global markets. The mind map for the Unilever SWOT analysis is as follows: Unilever SWOT Analysis mind map.png

Figure 1 Unilever SWOT analysis Mind Mapping

Key Takeaways

Unilever's SWOT Analysis report discussion highlights that Unilever has a bright future but needs to invest in its marketing and product diversification strategies. It must ensure that it addresses the needs of the consumers and innovates its product portfolio, which is hard to replicate.

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