Report on Business Strategies used by Unilever

Leading strategic decision making
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Table of Contents
Introduction........................................................................................................................3
Unilever’s Business Strategy.............................................................................................4
Porter’s Generic Framework..........................................................................................4
Unilever Business Model...............................................................................................5
Critical evaluation of Porter’s Generic Competitive Strategies framework........................8
Benefits and limitations of the framework......................................................................8
Recommendations to overcome the limitations.............................................................9
Conclusion.......................................................................................................................12
References.......................................................................................................................13
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Introduction
The purpose of this report was to analyse Unilever's business strategy using Porter's
Generic Strategies framework. It begins with a descriptive analysis of the approach and
its features, followed by a visual image for simpler reader understanding. The part of the
report examines Unilever's various operational functions in which it seeks to obtain a
competitive edge and compares them to Porter's concept. The analysis then critically
examines the author's structure and contains the constraints that it brings. Further to
that, it provides a good example of a conceptual model which might overcome the
drawbacks, as well as examples of companies that, despite not entirely fitting into
Porter's structure, proved to be very effective and maintained a competitive advantage
in the marketplace. This report is then followed by a concise conclusion of the
observations. The study has been classified into several sections and subcategories to
make it easier to find necessary details.
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Unilever’s Business Strategy
Porter’s Generic Framework
Porter's Generic Strategies framework was developed by Michael Porter, who made the
argument that if a business wants to gain a competitive edge over its rivals, it must
either bring down the cost of its goods and services or differentiate them from rival
companies' goods or services in ways that consumer perceives as more beneficial
(Sumer & Bayraktar, 2012). As a direct consequence of a superior perceived value of a
good or facility, the company will be able to raise prices to make up any added
expenses associated with making that significance. Porter contends that only in
extraordinary circumstances can the business incorporate all of these features that
are low cost and high valuation in the strategic approach it is currently undergoing
(Shaw, 2012). It is almost impossible for a business to provide a high-value goods or
services at a cheap rate. The framework's creator adds a whole new element– the
extent of the company's customers to whom it will sell its products or services. The
creator's concept has been simplified by presenting Porter's structure below.
Figure 1 Porter's Generic Strategies
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