Challenges Faced by Unilever in Trading Across Borders: A Comparative Analysis of Competitive Position and Theoretical Tools for Business Enhancement

Business Project
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Part 1................................................................................................................................................4
(a) Comparative Analysis of Unilever's Competitive Position....................................................4
(b) Explaining various challenges the company need to consider when trading across borders.8
Use appropriate theoretical tools, discuss what company needs to consider to enhance their
business......................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
UNILEVER is a public limited company of consumer goods which was founded on the 2nd
September in 1929. It operates is business from London, England and serve its offering of
product and services worldwide. This British multinational company is the largest producer of
soaps around the globe and its products are available in around 190 countries. It owned 400
brands and organised into home-care, beauty, personal care, foods and refreshments. Nestle and
Procter and Gamble are the UNILEVER's largest and the international competitors.
UNILEVER's ranking compared to other organisations in which it has competitive advantage
over its competitors.
Earlier in 1930s business grew with new ventures and launched in Africa and Latin
America by acquiring United Africa Company. Margarine Unie which is a Dutch margarine
producer and the British soap maker Lever Brothers are the merger in UNILEVER and divested
its speciality with chemical business in 1997. UNILEVER has made numerous of corporate
acquisitions such as Lipton, Chesebrough-Ponds, ben & Jerry's. Paul Polman was the leader of
the company in 2010 that gradually shifted the focus of company towards health and beauty
brands. UNILEVER has been primarily listed on the London Stock exchange and now also in
London Stock Exchange.
Business Project are aligned with a company's business strategy and intended to achieve
the objectives of business which are defined. It requires designing portfolio management, law
enforcements and investment logic mapping for major business change in Business Projects.
This projects aims to find all the answers, solutions and helps to find new opportunities related to
the business. Specifically, analysis for these projects gives access to the all major factors which
affects businesses internally as well as externally. Purpose of the business project is to evolve
skills related to manage an organization to stating business goals, establishing pathways to
achieve them on required time.
The report will describe comparative analysis of the company's competitive position in it
various markets. In addition, study will shed light on the company's business activity result in
gaining competitive advantage for expanding its business globally. Further, report will explain
various challenges which the company need to consider for smooth functioning, when trading
across borders. In the end, report will elaborate theoretical tools and discussing the company
needs to consider for enhancing their business in the global market.
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MAIN BODY
Part 1
(a) Comparative Analysis of Unilever's Competitive Position
Comparative Analysis
A comparative analysis is a strategy through which company can identify the major
competitors. This analysis also helps company to research the products, sales and their strategies
for marketing (Li and et.al., 2020). By taking comparative analysis into consideration Unilever
can also create new business strategies. There are different methods of analysing competitive
position these are as follows:
Porter's Five Forces of Analysing Competitive Position
Porter's Five forces of analysis is a simple framework for evaluating and assessing the
strengths and position of any organization (Porter’s Five Forces of Competitive Position
Analysis, 2021). This analysis is based on the concept that explains, there are five factors which
determine the competition in the market (Bruijl, 2018). Also it can be used to find the areas of
strength and weaknesses.
Unilever is competing in the consumer goods market very effectively. Consumer and
competitors are the major forces that impact the positions of the company. The five forces that
are affecting Unilever:
1. Suppliers Power: Unilever has huge chain of suppliers that impacts the environment of
the industry by affecting the level of supply available to firms. This is an external factor
and imposes a moderate intensity force on the consumer goods industry. Any change in
production level by supplier tends to change in availability of raw material used by
Unilever. In similar ways it affects other companies as well. However Unilever is
managing their suppliers very well and giving them a competitive advantage.
2. Buyers Power: Unilever must consider the factors such as low switching cost, high
quality of information and small size of buyers. This contributes to strong bargaining
power of consumers. The consumers have access to compare products based on the
information present online. This also gives tough competition to Unilever as there are
other companies that are selling the same products. Buyer's bargaining power is major
aspect that needs to consider this plays a major role to have good position in the market.
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