Industry Trend Analysis of Unilever UK
Added on 2022-02-19
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Running Head: Report 1
Industry Trend Analysis of Unilever UK
Report
Student’s Name
Institutional Affiliation
Industry Trend Analysis of Unilever UK
Report
Student’s Name
Institutional Affiliation
Running Head: Report 1
Introduction
Modern management relies heavily on strategic decision-making, which is essential to a
company's long-term success and survival. In several studies, the importance of senior
management's involvement and the process of making strategic choices is stressed (Papadakis,
2017). Managers and academics want to improve their strategic decision-making capabilities.
Strategic decision-making must be strengthened in light of current environmental and
management challenges. The weather is becoming more erratic and violent. The world around us
is evolving at a fast pace. In the past, progress was slow. They are on top of the latest fashions,
which prior generations may not have been. For example, the pace of technical and other
developments may be measured by us. New possibilities and dangers may arise as a result of
these adjustments. Monitoring, investigating, and anticipating environmental change has become
more challenging. A new set of abilities and approaches are required for strategic decision-
making.
2. Part 1: IndustryTrend Report –Unilever UK
2.1 Introduction & Identifying Issues
Unilever is a global food, personal care, cleaning, and beverage company in more than 100
countries. William Hulme Lever Viscount Leverhulme and Samuel van den Bergh formed
Unilever PLC on January 1, 1930, with Antonius Johannes Jurgens and Samuel van den Bergh as
partners. The organisation has adopted several strategic management strategies to remain
competitive in ever-changing business settings. Nestlé, Reckitt Benckiser Henkel, and Procter &
Gamble are the company's main competitors (Unilever Official Website, 2019).
Despite its international financial success, various issues are found in its production procedures
and strategies. When a company decides to produce the same product in several countries, some
will lose out. The company also has the challenge of distinguishing its products from those of its
competitors without packaging. It is challenging for its leadership to establish a strong brand
identity. The company has suffered financial losses due to being caught off guard by quick
improvements in technology.
Introduction
Modern management relies heavily on strategic decision-making, which is essential to a
company's long-term success and survival. In several studies, the importance of senior
management's involvement and the process of making strategic choices is stressed (Papadakis,
2017). Managers and academics want to improve their strategic decision-making capabilities.
Strategic decision-making must be strengthened in light of current environmental and
management challenges. The weather is becoming more erratic and violent. The world around us
is evolving at a fast pace. In the past, progress was slow. They are on top of the latest fashions,
which prior generations may not have been. For example, the pace of technical and other
developments may be measured by us. New possibilities and dangers may arise as a result of
these adjustments. Monitoring, investigating, and anticipating environmental change has become
more challenging. A new set of abilities and approaches are required for strategic decision-
making.
2. Part 1: IndustryTrend Report –Unilever UK
2.1 Introduction & Identifying Issues
Unilever is a global food, personal care, cleaning, and beverage company in more than 100
countries. William Hulme Lever Viscount Leverhulme and Samuel van den Bergh formed
Unilever PLC on January 1, 1930, with Antonius Johannes Jurgens and Samuel van den Bergh as
partners. The organisation has adopted several strategic management strategies to remain
competitive in ever-changing business settings. Nestlé, Reckitt Benckiser Henkel, and Procter &
Gamble are the company's main competitors (Unilever Official Website, 2019).
Despite its international financial success, various issues are found in its production procedures
and strategies. When a company decides to produce the same product in several countries, some
will lose out. The company also has the challenge of distinguishing its products from those of its
competitors without packaging. It is challenging for its leadership to establish a strong brand
identity. The company has suffered financial losses due to being caught off guard by quick
improvements in technology.
Running Head: Report 1
2.2 An Analysis of an Organisation’s External Environment
Businesses are affected both favourably and badly by their operating environment. For example,
a rising number of young people throughout the globe rely on Unilever's products as they grow
up. Having a larger population increases the demand for firm products, but it also necessitates a
more innovative approach to product development. In addition, in line with rising living
standards, demand for the company's products increased (Penrose, 2015).
The company benefits from the world's fast technological advancement, but it also faces
particular challenges. Computerised supply chain and logistics management systems have
allowed the company to run its business more effectively, resulting in considerable financial
gains for its owners (Sadler, 2017). Since the global financial crisis of 2007, the global economy
has rebounded. However, company sales were severely affected by the financial crisis but are
currently improving. In 2019 and 2020, sales increased, demonstrating that the company's
strength is increasing.
Unilever is aggressively extending its operations to take advantage of the new markets that are
opening up due to the improved global economic environment. Now that the political
environment favours business, Unilever may grow its activities outside of its founded nation. It is
the responsibility of the company to abide by the nation's laws and business rules when doing
business in the country. Due to growing competition from international corporations offering
equivalent services, the company's issues directly result from globalisation. Companies from
across the world vie with one another for the firm's attention (Neave, 2018).
Blue Ocean Strategy of Unilever
For firms and brands like Unilever, the blue ocean strategy is about establishing a distinct
identity that differentiates them from their rivals. A technique known as the blue ocean strategy
aims to increase demand in an uncontested market sector, rendering competition irrelevant.
Heavy hitters like Unilever might redraw market boundaries and reorganise the sector using the
"blue ocean" strategy. A flexible industrial structure is assumed in the blue ocean model and
framework.
2.2 An Analysis of an Organisation’s External Environment
Businesses are affected both favourably and badly by their operating environment. For example,
a rising number of young people throughout the globe rely on Unilever's products as they grow
up. Having a larger population increases the demand for firm products, but it also necessitates a
more innovative approach to product development. In addition, in line with rising living
standards, demand for the company's products increased (Penrose, 2015).
The company benefits from the world's fast technological advancement, but it also faces
particular challenges. Computerised supply chain and logistics management systems have
allowed the company to run its business more effectively, resulting in considerable financial
gains for its owners (Sadler, 2017). Since the global financial crisis of 2007, the global economy
has rebounded. However, company sales were severely affected by the financial crisis but are
currently improving. In 2019 and 2020, sales increased, demonstrating that the company's
strength is increasing.
Unilever is aggressively extending its operations to take advantage of the new markets that are
opening up due to the improved global economic environment. Now that the political
environment favours business, Unilever may grow its activities outside of its founded nation. It is
the responsibility of the company to abide by the nation's laws and business rules when doing
business in the country. Due to growing competition from international corporations offering
equivalent services, the company's issues directly result from globalisation. Companies from
across the world vie with one another for the firm's attention (Neave, 2018).
Blue Ocean Strategy of Unilever
For firms and brands like Unilever, the blue ocean strategy is about establishing a distinct
identity that differentiates them from their rivals. A technique known as the blue ocean strategy
aims to increase demand in an uncontested market sector, rendering competition irrelevant.
Heavy hitters like Unilever might redraw market boundaries and reorganise the sector using the
"blue ocean" strategy. A flexible industrial structure is assumed in the blue ocean model and
framework.
Running Head: Report 1
Unilever explored new market segments using the blue ocean method and framework since such
segments were neither competitive nor actively utilised by existing rivals. As a result, Unilever
has generated new demand rather than taking market share away from existing competitors.
Because of its rapid growth, Unilever has enjoyed increased profitability. Since rivals are no
longer relevant, Unilever's "blue ocean" strategy is a game-changing way of thinking.
The blue ocean signifies uncharted terrain with limitless potential for growth and business
expansion. There are several ways in which Unilever employs the blue ocean strategy.
A Comparison of the Blue and Red
Unilever has a "blue ocean" strategy to expand into new areas quickly. In both the red and blue
oceans, Unilever has a strong presence. The strategy used relies on the product, the company's
goals, and the evolution of the market.
The following aspects differ between Unilever's red and blue ocean strategy.
Red-Ocean Strategy
In well-established markets, Unilever faces out against well-established competitors.
Unilever aims to get a slice of the pie already out there.
Value and affordability are two things Unilever is willing to compromise on.
Unilever has a low-cost approach to differentiate itself from its competitors.
Blue Ocean Strategy
Unilever New markets are created, rivals are rendered obsolete, and redrawn industry
boundaries.
As a result, Unilever creates new demand and a new pie for itself.
When it comes to value-cost trade, Unilever has shattered it
Unilever strives to differentiate itself at a reasonable cost.
Unilever and COVID-19 Pandemic Period
Unilever explored new market segments using the blue ocean method and framework since such
segments were neither competitive nor actively utilised by existing rivals. As a result, Unilever
has generated new demand rather than taking market share away from existing competitors.
Because of its rapid growth, Unilever has enjoyed increased profitability. Since rivals are no
longer relevant, Unilever's "blue ocean" strategy is a game-changing way of thinking.
The blue ocean signifies uncharted terrain with limitless potential for growth and business
expansion. There are several ways in which Unilever employs the blue ocean strategy.
A Comparison of the Blue and Red
Unilever has a "blue ocean" strategy to expand into new areas quickly. In both the red and blue
oceans, Unilever has a strong presence. The strategy used relies on the product, the company's
goals, and the evolution of the market.
The following aspects differ between Unilever's red and blue ocean strategy.
Red-Ocean Strategy
In well-established markets, Unilever faces out against well-established competitors.
Unilever aims to get a slice of the pie already out there.
Value and affordability are two things Unilever is willing to compromise on.
Unilever has a low-cost approach to differentiate itself from its competitors.
Blue Ocean Strategy
Unilever New markets are created, rivals are rendered obsolete, and redrawn industry
boundaries.
As a result, Unilever creates new demand and a new pie for itself.
When it comes to value-cost trade, Unilever has shattered it
Unilever strives to differentiate itself at a reasonable cost.
Unilever and COVID-19 Pandemic Period
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