Analysis of Unilever's Internal Resources, External Environment and Competitive Position

CRITICALLY ANALYSIS

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Internal resources and capabilities of Unilever giving it a competitive analysis........................3
Identification and critical analysis of key drivers of change from an external environment and
its impact on Unilever.................................................................................................................6
Porter five forces model..............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
The present report is based on analysis of a company’s external environment and its
strategic capabilities. For this Unilever will be selected for the performance of environmental and
strategic analysis (Haseeb and et.al., 2019). Unilever is a UK based multinational consumer
goods corporation dealing in products such as ice cream, food, minerals and supplements,
wellbeing, etc. In the context of Unilever, various analysis and evaluation will be performed
which includes internal resources and capabilities analysis giving the concern a competitive
advantage in the market through VRIO analysis and SWOT analysis. Further, various drivers of
change existing in the external environment will be identified through PESTLE model that is
having an impact over entrepreneurial activities of Unilever. Also, Porter’s five forces model
will be used to evaluate how the competitive forced existing in the market.
MAIN BODY
Internal resources and capabilities of Unilever giving it a competitive analysis
VRIO analysis for identifying distinctive resources and capabilities
VRIO is the best technique of evaluating and analysing company's resources and its resulting
competitive advantage for the company (Adefarati and Bansal, 2019). It is a framework based on
resources that are valuable, rare, imitable and organized.
With to Unilever, resource analysis is as follows:
Resources of
Unilever
Valuable Rare Imitable Organization Competitive
advantage for
the company
Good talent
(or human
capital) for
managing
legal and
regulatory
obligations.
Yes No Competitors
can imitate by
hiring and
obtaining
similar human
capital.
Yes There is less
critically of
this resource,
as it can be
imitated easily
by
competitors.

Digital
strategy is
successfully
implemented.
Yes, as in the
absence of it,
competitivene
ss get weaker
(Zulkarnain,
Wahyuningtia
s and Putranto,
2018).
No, as
competitors
are also
having good
digital
strategy.
Easier to be
imitated.
Yes, with the
help of this
strategy,
Unilever is a
leader in the
industry.
Critical factor
of the industry
but not able to
give
sustainable
competitive
advantage.
Financial
resources
Yes, funds are
considered to
be the blood of
every
business.
No Yes, as
liquidity in the
market and
financial
instruments
can be
accessed by
the
competitors as
well
(Gustafsson
and et.al.,
2017).
Unilever is
enjoying
sustainable
financial
performance
& position for
many years.
Yes, in a
limited scope
& for a
temporary
period.
Availability of
critical raw
materials
Yes Yes, as
competitors
need to arrive
to terms
equivalent to
domineering
market
position of
Unilever (Yu
Yes, can be
imitable.
Yes Source of
sustainable
competitive
advantage.