Strategic Analysis of a Firm and Industry

This report provides a detailed analysis of strategic analysis in organizations, focusing on the assessment of different types of strategies used to achieve a competitive edge. It includes an introduction to the selected company, competitor analysis, internal analysis, strategic options, recommendations, and reflection. The report also discusses the external and industry analysis, including the use of PESTEL analysis and Porter's 5 forces model. The internal analysis covers a SWOT analysis of the company.

Strategic Analysis of a
firm and industry

Executive Summary
Strategic analysis refers to the assessment of the overall level of different types of
strategies which can be used by the organizations so that they are able to achieve a strategic as
well as a competitive edge over the various types of competitors in the market. The use of this
particular analysis can be helpful for the firms in ensuring that they are able to evaluate the
market condition in a better way so that they can make judgements and decisions accordingly.
Thus in this report, a detailed discussion on the way an organization conducts strategic analysis
so that the attainment of a wide range of goals and objectives can be made.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction to the selected company..........................................................................................1
Competitor analysis.....................................................................................................................4
Internal analysis...........................................................................................................................5
Strategic Options..........................................................................................................................7
Recommendations........................................................................................................................8
Reflection.....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic analysis refers to assessment of the strategic position of the organizations in the
right manner so that the deriving of conclusions and recommendations to be applied can be made
(Abushova, Burova and Suloeva, 2016). The use of this analysis can help the firms to be able to
make sure that they are able to attain the desired short-term, medium-term and long-term goals
and objectives so that the level of efficiency and effectiveness can be raised for meeting them.
Further, its use can be made so that the firms are able to ensure that they are able to assess the
strategies which is used by it and the strategies which are used by the competitors so that it can
assess whether the strategy which is being used by it is appropriate or not which will help in
taking of right decisions in the future. Unilever is a British multinational company which deals in
the production of a wide variety of consumer goods in the market. In this report, a detailed and
specific analysis will be made on Introduction of the company, Competitor analysis, Internal
analysis, Strategic options, Recommendations. Additionally, the use of reflection will also be
made as a part of this particular project.
MAIN BODY
Introduction to the selected company
Unilever is a British Company which provides a range of consumer goods. The products
which are provided by the company include food, confections, energy drinks, baby food, soft
drinks, cheese, beauty products, personal care etc. It is a multinational company i.e. MNC and its
products are available in around 190 countries.
The company sells its products through different retail stores present in various countries
in the world (Abushova, Burova and Suloeva, 2016). Also it sells its products directly through
wholesalers in the wholesale market to the customers who require large quantity. Top customers
of Unilever are the people who require different types of retail products so that they are able to
meet out their wide variety of needs and requirements effectively and efficiently. Thus in this
way the company is able to make sure that it has marked its presence in the countries all over the
world as a part of becoming a global company with a high turnover and overall level of profits
(Akçura and Ozdemir, 2017). Unilever is a company which is organized in three main divisions-
Food & Refreshments, Home Care and Beauty & Personal Care. Thus in this way it can be said
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that the various types of products are provided by this company to the customers which ensures
that higher-level of goals and objectives can be attained without facing problems and issues.
Revenue- In the year 2019, the revenue of Unilever was 5,198 crores EUR.
Profit- In the year 2019, the operating profit was 16.8 %.
Other Performance Indicators- Unilever has been performing good in the retail
segment by ensuring that the customers are provided with right products and services according
to their needs and requirements.
Recent acquisitions- Unilever has recently acquired SmartyPants Vitamins.
Business Model- The business model of Unilever is related with ensuring that it sources
its goods from the wholesalers and provides them to the retailers who subsequently provide them
to the various customers in the market. Thus in this way the company is able to make sure that it
is able to serve these customers properly.
Manufacturing of products by Unilever- Unilever produces a wide range of goods
related from beauty, cosmetics, hair care, groceries which are helpful in meeting out the various
types of needs and requirements of the customers.
External and Industry analysis-
External analysis refers to ensuring that the overall assessment of the various types of
external factors in the macro environment can be assessed. For this purpose the use of PESTEL
analysis will be made. In the context of Unilever it is as follows-
Political factors- Factors like Government Policy, Political Stability, Corruption and
Foreign Trade Policy are included as a part of the political factors. For a company like Unilever
it is important that an assessment of these particular factors can be made so that the future
analysis can be made (Breja, Banwet and Iyer, 2016). It will help a lot in the determination of the
strategy because these political factors can help a lot in ensuring that the execution of the
strategic change can be done in an appropriate manner. Uncertainty created due to Brexit has
impacted Unilever a lot because its overall level of profits can be impacted due to it.
Economic factors- These are the factors like Economic growth, Exchange rates, Interest
Rates etc. In the context of a company like Unilever it becomes crucial that they are considered
so that the attainment of the economic goals and objectives which are related with the company
can be done in the future. This will help a lot in ensuring that the economic objectives are
attained effectively and efficiently. Post-COVID Recession and Increase in Inflation are the
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economic factors which create an overall impact on the company because it can reduce the level
of profits of the company.
Social factors- Factors like Population growth rate, Career attitudes, Lifestyle attitudes
can be considered here. Thus In Unilever, it is crucial that the decisions relating to the social
factors can be made in a proper manner which will help in ensuring that the strategies of the
company are moulded accordingly to attain a strategic advantage over the competitors in the
market. Healthy eating by the customers has ensured that they look out for healthy food options
and therefore the overall level of demand has been increased.
Technological factors- Factors like Technology incentives, level of innovation, R&D
activity, technological change can be considered by the company. In Unilever they can be highly
important so that the change which has to be brought in the future can be executed in a proper
way which will help a lot in the attainment of the goals and objectives in the future. The use of
AI in the future by the company will help it a lot in ensuring that the efficiency and effectiveness
level can be raised.
Environmental factors- Factors like Weather, Climate, Environmental policies etc. are
required to be considered by the company (Canto-Perello, Curiel-Esparza and Calvo, 2016). For
Unilever, it is important that they are considered because the consumers are nowadays conscious
toward the environment.
Legal factors- The factors like Discrimination laws, Employment laws etc. have to be
analysed by a company because they are a part of the legal rules and regulations which are
followed within the company. In Unilever, it is crucial that the consideration is given to these
particular factors which will help in ensuring that the goals and objectives can be attained in the
future.
All of the factors which are mentioned above matter a lot for a company like Unilever
because it has to reframe its strategy to stay relevant in the market and to obtain a competitive
and strategic edge over the competitors in the market.
Industry analysis- The industry analysis of retail industry in U.K. reveals that the
industry is detailed and vast and can cover various types of sectors which are quite vital to the
economy. The company is quite strong in the market of U.K. Because it is able to ensure that the
overall goals and objectives related to the retail can be met by it effectively and efficiently. In
2019, 394 billion pounds were generated as a part of retail sales. A wide range of employment
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opportunities are present in buying, customer services, loss prevention and security,
merchandising and allocation, online retail, retail management, visual merchandising,
warehouse, distribution, logistics and supply chain etc.
Thus the analysis of the retail industry reveals that this industry is a fast-growing industry
with a lot of scope in the future (Davis, 2016). Thus in this way it can be said that a lo of
opportunities for the purpose of growth and expansion can be provided in the future for the
organizations within this industry which will help in the attainment of the overall goals and
objectives. The forecast of the industry is helpful in knowing the trends which can happen in the
future and taking the desired actions accordingly.
Porter's 5 forces is an useful model which can be used for the purpose of analysing the
industry in detail (Behl, Singh and Venkatesh, 2016). The analysis of these particular forces in
the context of retail industry can be done in the following manner-
Competitive rivalry- This refers to the competition which can be created within the
market. In retail industry, there is a presence of a lot of players in the market which therefore
reflects that the force has a high power in the market. Nestle, P&G are the main competitors of
Unilever because they give a strong competition to the company in the market effectively and
efficiently.
Supplier power- This means the range of suppliers which are present within a market
(Jain and Li, 2018). In the context of retail industry, the suppliers are having a high-level of
power within the market which can create a particular influence on the price of the inputs which
are purchased by the firms. The suppliers of Unilever are based in different countries from where
it can source its different types of goods so that it is able to ensure that the attainment of the
overall goals and objectives can be made effectively and efficiently.
Buyer power- This refers to the influence created by the buyers within the market
(Jasiulewicz-Kaczmarek and Stachowiak, 2016). In the retail industry, the buyers have a
significant power to influence the different types of decisions because their demand can increase
or decrease the level of price which are set by the organizations within the market. Therefore this
force has a high power. The biggest buyers of Unilever are those customers who want premium-
quality retail products to be provided to them so that they are able to achieve the specific goals
and objectives.
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Threat of substitution- This refers to the threat which is created by the substitute
products within the market (Kostiuchenko, 2020). Retail industry has a lot of substitute products
which can create an overall impact on the level of demand of the products of the different
companies and can affect their level of operations. This force also contains high power. There
are various companies which offer the products offered by Unilever at low costs which creates a
threat for the company in the market.
Threat of new entry- This means the threat which is put in by the new players operating
within the market (Mostova, 2017). The Retail Industry faces this particular threat because a lot
of new players can enter the market and can impact the profitability level of the existing
companies operating within the market. This force also has a high power. The new entrants can
disturb the business of Unilever because they can offer their products at a lower price and thus
this can impact the overall profitability level.
Justification- All of the forces which are mentioned above have a higher-level of impact
on the firms which are operating in the retail industry. Thus the industry analysis of this industry
reveals that the influence of these particular factors can create a significant impact on the level of
operations as well as profitability of these companies within the market.
Competitor analysis
Basis Unilever P&G
Range of products In the terms of range of
products Unilever offers
products in retail category to
the customers in the market
depending upon their needs
and requirements. Products
like food, confections, energy
drinks, baby food, beauty
products etc. are provided to
the customers by the company.
The products of the company
are a lot more diverse than
In the terms of products and
services P&G provides a lot of
products in different types of
segments like Beauty,
Grooming, Health Care, Fabric
& Home Care etc. The
products of the company are a
lot less diverse than Unilever.
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P&G.
Revenues Unilever's revenues in the year
2019 were 5,198 crores EUR.
Therefore in the terms of
revenues the company is
behind P&G.
The revenues of 7,095 crores
USD. Thus in the terms of
revenues the company is ahead
of Unilever.
Diversification In the terms of Diversification
Unilever is behind P&G as the
presence of P&G is there in
more countries.
P&G is ahead of Unilever in
the terms of global presence
because it is present in a lot
more countries as compared to
this brand.
Internal analysis
The Internal analysis in the organizations can be useful in ensuring that the overall
internal situation of the organizations can be assessed (Niu and et.al., 2019). For this purpose, the
use of the following models can be made-
SWOT analysis-
SWOT analysis
Strengths Weaknesses
 Unilever has a strong brand image in
the market. This brand image can be
quite helpful for the company in
ensuring that it is able to attract more
customers towards itself. The strong
portfolio of brands of Unilever ensures
that the company is able to raise its
overall profitability level in the right
manner by targeting the wide range of
customers.
 Unilever has a broad product mix
which it can offer to the customers in
 Unilever has not diversified its business
in a proper way as compared to the
other brands which exist within the
market.
 Unilever has a higher-level of
dependence on the retailers. Thus thus
type of dependence is putting an overall
impact on the performance level of the
organization within the market in the
future.
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the market. In this particular product
mix, a wide range of the products is
offered to the customers according to
their particular needs and requirements.
Opportunities Threats
 Unilever has an opportunity to make
sure that it is able to carry out business
diversification so that the use of
business opportunities can be made
thereby helping a lot in ensuring that
the level of revenues and profitability
can be enhanced effectively and
efficiently.
 Unilever has an opportunity to make
sure that it can carry out Market
development in the future by
diversifying its range of products and
services and ensuring that it is able to
achieve its future goals and objectives.
 In the terms of competition, Unilever
faces a threat because a lot of new
players have entered into the market
with lower prices and better product
choice which they offer to the
customers which can create an overall
impact on its level of operations.
 The government can frequently bring a
change in the tax policy by either
increasing or decreasing the rates of tax
on the products and services. Thus in
this way Unilever is facing a threat
related to the frequent change in tax
rates which is thus impacting its overall
profitability in the market.
VRIO analysis-
Resources Valuable Rare Inimitable Organised
Brand Image    
Products &
Services
  
Goodwill  
Customer Base 
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The VRIO analysis of Unilever is explained as follows-
Valuable Resources- Brand Image is valuable because it is created after making a a lot
of efforts by the company. Products & Services are valuable because they can ensure that the
company can attain a higher-level of profitability within the market. Goodwill is valuable as it
can help a lot in ensuring that the overall image enhancement of the company can be carried out
in the market. Customer Base is valuable because through the use of customer base the company
can ensure that it can attain its relevant goals and objectives thereby helping it to enhance the
overall profitability level (Philpot, Hipel and Johnson, 2016).
Rare Resources- Brand Image is rare because it is created after years of sustained efforts
which are put in by the management. Products & Services are rare because the company has
ensured that it produces certain unique and innovative products which are able to attract the
customers. Goodwill is rare because it is created after various efforts of the company. Customer
Base is not rare because other companies can also create after putting the desired efforts through
the use of aggressive marketing and promotional strategies (Sotiriadis, 2018).
Inimitable Resources- Brand Image is inimitable because it is not easy to copy it for the
other companies within the market. Products & Services are inimitable because certain unique
and innovative products are provided by the company to its various customers in the market.
Goodwill is not inimitable because other companies can create it after putting sustained efforts.
Customer Base is not inimitable because various other organizations can enhance it by increasing
the number of products and services which are present within the market.
Organised Resources- Brand Image is organized because it has been enhanced after
providing good products and services to the customers. Products & Services are not organized
because there can be difference in the quality promised and offered. Goodwill is not organized
because some of the customers may give a negative feedback. Customer Base is not organized
because the customers can also shift to other companies.
Strategic Options
The use of a wide range of strategic options can be made by the organizations so that they
are able to achieve their goals and objectives effectively and efficiently (Breja, Banwet and Iyer,
2016). The different types of strategic options which can be considered by Unilever are as
follows-
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 Market penetration- Unilever can consider making the use of Market penetration
strategy because it will be helpful in ensuring that the company is able to effectively
penetrate the market without problems and issues. In this way the company can ensure
that the overall presence within the market can be enhanced which will help a lot in
ensuring that the attainment of the goals and objectives can be made.
 Market expansion- Unilever can make sure that the market expansion strategy can be
covered in the right manner by it so that it is able to ensure that it can expand its products
and services to earn higher-level of profits in the future without problems and issues. This
will help the company to be able to achieve its goals and objectives in the future in the
right manner without problems and issues.
 New product development- Unilever can make sure that the new product development
can be done by it by using creative and innovative approaches. In this way the company
will be able to ensure that it can creatively and innovatively achieve its goals and
objectives in the future without problems and issues (Meena and et.al., 2019).
 Product development for a new market- In this approach the companies identify new
products to be developed for being targeted in a new market. Unilever can therefore
consider this particular option for the purpose of ensuring the attainment of higher-level
of strategic growth can be made in the future (Novikov, 2018).
 Strategic Partnership- The use of Strategic Partnership can be made by forming an
alliance with those companies who deal in the same segment of goods and services which
will thereby help in ensuring that the overall goals and objectives can be attained
effectively in the future.
 Joint Venture- The use of Joint Venture is helpful in ensuring that the combined use of
the resources can be made by bringing two or more companies together. For a company
like Unilever it becomes crucial that this can be used for the purpose of strategic targeting
of certain markets in the future.
Justification- The use of Market Penetration strategy is recommended for a company
like Unilever because by making its use the company will be able to ensure that it is able to
attain its desired goals and objectives in the future because it will identify the various segments
where growth can be attained by it thus helping in attaining higher-level of competitive
advantage over the various competitors in the market effectively and efficiently.
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Recommendations
From the above discussion it is clear that the attainment of strategic growth is quite
crucial from the point of view of a company to be able to attain its goals and objectives in the
future. The following recommendations can be made for this particular purpose-
 The management of Unilever has to consider product expansion in the future so that the
company is able to ensure that the various types of goods can be offered to the customers
according to their range of needs and requirements.
 Unilever's managers can be recommended that they are able to make the use of
innovation in the market by bringing in new products and services which will be helpful
in ensuring that the overall level of goals and objectives can be attained. This will also be
quite useful in ensuring that the strategic advantage over the competitors can be attained.
 The management of Unilever can make sure that it is able to identify those countries in
the world where the expansion can be done to attain the desired level of goals and
objectives effectively and efficiently. Thus it is desired that efforts are made in order to
expand within these countries so that the level of profitability can be enhanced.
Reflection
Gibbs' reflective cycle-
This model is used to reflect back on the past experience by ensuring that the different
types of stages can be used by the person who is reflecting on the past experience effectively and
efficiently. The stages which can be used for reflection are explained as follows-
Description- As a part of the group, it was quite crucial that we understood the learning
outcome which we were required to attain. Thus the group members helped me a lot in
understanding the way decision-making process can be applied in order to take effective
decisions in the future. I think that our group performed well on the project because we were able
to derive the required information in a proper manner effectively and efficiently.
Feelings- We as a part of the group had mixed feelings while we were learning the
appraisal of the decision-making process. Sometimes when we took wrong decisions we had bad
feeling. When we took good decisions we had good feelings.
Evaluation- As a part of the group, I identified the ways through which I can take
various decisions effectively in the future (Zaitseva and et.al., 2017). Thus According to me
these ways can be helpful in taking of appropriate decisions in the future. I can say that in the
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future we will be required to make sure that we develop our own methods and techniques in the
right manner so that we are able to ensure that the overall goals and objectives related to our
work can be attained.
Analysis- As member of a particular group I was able to ensure that I took part in the
taking of various types of decisions. Some of the decisions which I made were wrong which
acted like a learning curve for me. I also took some right decisions which helped in ensuring that
the overall goals and objectives were attained easily by me.
Conclusion- Here a sense of making of conclusions about something which has
happened can be made. As a member of the group, I was able to conclude that the decision-
making process can be a highly effective one which can help a lot in ensuring that the
appropriate decisions are taken in the future.
Action plan- As a member of the group, I have identified my particular weaknesses
which I have in Decision-making. I will make sure that I connect in a better manner with the
members of my group through practising effective cooperation and coordination to be able to
ensure that the overall goals and objectives can be attained.
Thus in this way I was able to work in the right manner with my group members and was
able to make sure that I appraised the decision-making process in detail which will help me a lot
in making better decisions in the future.
CONCLUSION
From the above report, it can be concluded that Strategic analysis of an organisation can
help in assessing the use of different types of strategies and methods can be made so that the firm
is able to achieve a strategic edge in the future. This type of analysis can help the management of
the organizations in dealing with dynamic changes in the business environment. With its use the
strategies of the organizations can be applied in a proper manner to achieve a competitive edge
over the competitors. Also, the use of reflection can be helpful in reflecting back on the past
experience and ensuring that the insights from this experience can be used in the future.
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REFERENCES
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management system. In Internet of Things, Smart Spaces, and Next Generation
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Sotiriadis, M., 2018. Strategic Analysis and Competition Analysis. The Emerald Handbook of
Entrepreneurship in Tourism, Travel and Hospitality. Emerald Publishing Limited,
pp.53-70.
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Zaitseva, N. A. and et.al., 2017. Methodological basis for the strategic analysis of development
of international hotel chains in Russia. Journal of Advanced Research in Law and
Economics. 8(2 (24)). pp.689-696.
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