Achieving Competitive Advantage: A Report on Unilever's Strategies

This report examines Unilever's strategies for attaining a competitive advantage in the market. It begins with an introduction outlining the importance of effective strategies for organizational success. The report then delves into the steps Unilever takes to achieve this advantage, including establishing brand loyalty, patenting products, continuous innovation, building long-term contracts, and fostering effective team building. The analysis includes the application of Porter's Five Forces and Porter's Generic Strategies to understand the competitive landscape and strategic positioning. Porter's Five Forces assesses competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entry. Porter's Generic Strategies explores cost leadership, differentiation, and focus strategies. The report concludes by summarizing how Unilever utilizes these strategies to improve market positioning, increase profitability, and capture a larger market share in the consumer goods industry.

Develop a Pitch that will
achieve a suitable competitive
estate for an organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Steps in attainment of competitive advantage.............................................................................1
Implementation of business strategies to attain competitive advantage.....................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
.........................................................................................................................................................8

INTRODUCTION
Every organisation wants to adopt effective strategies which helps to attain success in
market. Implementation of effective strategies and policies helps to attain competitive advantage,
large market share, improved profitability, better customer satisfaction and high brand image.
Unilever Plc is multinational organisation which deals in large number of products like food,
beverages, cleaning agents and personal care products (Parker and Bryan, 2017). The main
objective of management is to attain competitive advantage in market by implementation of
strategies like porter five forces and porter generic. There is also need to give emphasis on other
matters like brand loyalty, innovation, team building etc. to accomplish their targets effectively.
TASK
Steps in attainment of competitive advantage
Unilever Plc is British transnational consumer good company which is headquartered in
London, UK. The major areas under which this company provides their products are food,
beverages, cleaning agents and personal care products. It provides their services in all over the
world. The management of organisation is working in the direction of attain competitive
advantage and improve their position in market. So, this will provides large number of benefits
like high employee morale, customer satisfaction, improved profitability etc.
To attain competitive advantage management of organisation needs to provide focus on
their key operations, policies and relationship with customers which provides the relevant
information regarding what work needs to perform better to compete more effectively in market.
The organisation is also need to give more emphasis on maximisation of their efficiency and
products appeal. Accurate identification and evaluation of target market, relative competition,
recognition of potential opportunities which are available in future helps to improve the selling
of their existing products and services. Identification of such opportunities provides the vision
the management of Unilever Plc regarding development of good promotional mix which is far
superior to their competitions prevail in market. Consideration of internal and external factors
also plays an big role in development of the existing performance of organisation. It enhance the
decision making power of the management of organisation regarding different aspects.
Consideration of internal drivers of change like employee morales, cultural differences,
technological capacity, poor deliver etc. helps in preparation of effective policies which
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contributes in removal of such different issues. On other hand, to ascertain the positive impact of
external factors there is need to gather consequences in advance. It helps to build sound
organisational structure in all the world. There are some other steps which are taken by the
management of Unilever Plc regarding attainment of competitive edge in market is mentioned
below:
 Establishment of brand loyalty: It is effective strategy which helps to retain their
position in market. It is important for all the organisation to maintain their good brand
image in market. This helps to gain the loyalty and trust of customers towards their
different products. Branding of an organisation helps to link with the minds of customer
and influence their behaviour to purchase their branded products only. Such branding
provides the flexibility to the organisation regarding fixation of price of their products.
Customers have the belief upon the quality of branded products and always ready to pay
higher to get such products. So, it is important for Unilever Plc to establish good brand
loyalty among their customers to attain competitive advantage. This will provides the
opportunity regarding building of strong relationship with customers and deliver great
customer experience and service.
 Patent of product: It is effective approach which helps the organisation to save their
product, technologies and methods from copying by outsiders. This provides the
opportunity to attain the situation of monopoly in market due to having unique
technologies, methods and features in product. This will also works as important factor
which enhance the goodwill of organisation in market because of such consciousness of
management regarding safeguarding their products and technologies. This will be further
used by the management of Unilever Plc as weapon to achieve competitive advantage in
market (Faff, 2016).
 Continuous innovation: Innovation is important part behind the success of every
organisation. It is the duty of the management of Unilever Plc to conduct the research of
market on continuous basis regarding identification of the new technologies prevail in
market and the change which is happen in the behaviour of customers. It provides the
opportunity regarding timely up gradation and updating of their technologies and
techniques to bring necessary changes in their products which satisfies the different
requirements of customers. Such step contributes in keeping of their products fresh and
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competitive in market which is essential to attract large number of customers. Innovation
among the techniques and methods also helps in motivation of the employees at
workplace and improve their passion towards their work. This will bring expertise in their
operations which improves their performance. It also reduces the cost of production and
provides chance to enhance their profit margins. It will increases the overall profitability
and market share of Unilever Plc.
 Build long term contracts: It is effective step which is need to implement carefully,
otherwise it will provides negative impacts upon the ability of organisation to achieve
their targets. This will includes the step of making long term relationship with their
customers which restricts them to switch to their competitors. The management needs to
maintain the balance while making the contracts with their customers otherwise the
situation of losing business will arise. One of the important tactic which is followed by
the management of Unilever Plc, is to provide unique discounts and offers to their
customers to retain them for longer period of time. This will helps to drive their
competitors out of market and improve their sales figure (Armandi, 2015).
 Effective team building and connection between team members: To accomplish their
targets all organisations need to build effective teams in different departments of
organisation which performs their tasks effectively. This will enhance the ability of
organisation to perform multiple tasks without any confusions and mistakes. It also
brings good connection and coordination among different teams and departments. Due to
which large number of benefits are achieve by the management of organisation like good
employee relation, positive working environment, supportive behaviour, removal of
office politics etc. All such benefits helps to overcome from the adverse impact of
internal factors and enhance their performances in achievement of different objectives.
Effective working of organisation in diversified business conditions contributes in
achievement of competitive advantage in market.
Implementation of business strategies to attain competitive advantage
To improve their market positioning and gain competitive advantage management of
Unilever Plc decided implement some business strategies. The two business strategies which are
selected to adopt are porters five forces and porter generic. Both the strategies includes various
aspects which helps in identification of such factors which helps the organisation in attainment of
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competitive advantage. Both the strategies have their different procedure and advantages for
organisation. Application of both the strategies are define below:
Porters Five forces
The main aim of this theory is to understand about competitive forces to maximise their
profitability and capture large market share. It is considered as simple but powerful tool which
helps in determination of competitiveness of business environment. It is very useful for every
organisation to attain flexibility in their policies and strategies. This will provides the opportunity
to the organisation to take the benefits of their strong position in market or weaker organisation
improve their position. This theory is published in 1979 and considered as highly popular
business strategy tool. Management of Unilever plc uses this strategy to keep close watch on
their rivals and the factors which are present in business environment. This includes five
different forces which makes the environment competitive and helps in improvement of their
profitability. All these different five forces are define below:
 Competitive Rivalry: Under this first factor of the theory, main emphasis is to be
provide regarding determination of the number of competitors. Management of Unilever
Plc needs to identifies the rivals which are present in market, strategies adopt by them,
quality of their products, diversity in their services etc. This will provides the detailed
information regarding competition which is present in market. It is observed that there is
huge competition in consumer market. To attain competitive advantage by Unilever Plc
there is need to cut down the prices and simultaneously improve the quality of their
products. The management also noticed that need to adopt modern tools of marketing and
promotion which popularise the products in all the world among customers (Ansari, Gul
and Shamsi, 2017).
 Supplier power: This includes the determination of the power of supplier regarding
increase the prices of product. Here also provide emphasis on the number of suppliers
which are posses by Unilever Plc. The management need to identifies the unique features
of their products and services. This also includes the identification of the expense which
is incurred by organisation while shifting their suppliers. The management of Unilever
Plc identifies that large number of supplier are options are available in market. This will
provides the understanding about it is cheaper to shift from one supplier to another. It
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means the position of the supplier in market is weak and they don't have much power
regarding influencing the price of products.
 Buyer power: This is important force because the whole business activities is depends
upon their satisfaction and different demands in market. Unilever Plc needs to identifies
the power of buyer to drive the prices of their products down. To retain their position and
achieve competitive advantage organisation needs to determine the number of buyers of
their products, how easy for customers to shift from their products and services etc. In
consumer goods market, Unilever Plc is good brand image and large customer base
which shows the power of organisation is much more relation to customers.
 Threat of substitution: This includes about having the threat of substitution in market.
Unilever Plc is consumer goods company where large number of competitors like M&S
and TESCO also provides their functions. It is considered as biggest threat of substitution
of products of Unilever Plc in market. To attain competitive advantage the management
is need to prepare effective strategies and policies (Beica, 2015).
 Threat of new entry: The open market is largely impact the ability of organisation to
retain their position in market and improve their profitability. Unilever Plc identifies that
there is no restriction upon the entry of new organisation in their industry. To make
sustainability in their performances there is need to adopt rigours policies which helps to
drive their competitors out of the market.
Porter's Generic competitive strategies
It is another effective strategy which is adopted by the management of Unilever Plc. This
theory is used by the organisation to ascertain their position in industry on the basis of
profitability is above or below the average. If the profitability of organisation is above of the
average then it shows in long rum company is able to attain competitive advantage. The
competitive advantage which can be possess by organisation is basically of two types called low
cost and differentiation. This strategy includes three main approaches which are cost leadership,
differentiation and focus. This focus strategy has further two more variants such as cost focus
and differentiation focus. All these strategies are define below:
 Cost leadership: It is effective strategy under which the main of organisation is to
become the low cost producer in industry. The factors which helps the management of
organisation to become cost efficient are economic of scale, proprietary technology,
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preferential access to raw material etc. This provides the opportunity to Unilever Plc earn
large number of profits by reducing the production cost of their products.
 Differentiation: This includes the process of taking the support of innovative technology
which helps in production of such products which are different from each others. It is
observed that customers are more attracted towards such products which are having
unique features. This provides the opportunity to attain competitive advantage and
improve their profitability (Dehghani and Hosseininia, 2017).
 Focus: This strategy has narrow competitive scope within an industry. It is also be of two
types which are called as cost focus and differentiation focus. Impact of both these
strategies on Unilever Plc is defined below:
- Cost focus: This includes about the approach of having cost advantage in their target segment.
- Differentiation focus: This includes about having the differentiation in their target market
segment. The target segment must have include buyers with unusual needs or deliver system
which helps in providence of their products in better manner. Cost focus gives their emphasis on
cost behaviour some segments, on other hand differentiation focus provides emphasis on special
needs of customers in target segment. This will provides the opportunity to improve their sales
by satisfaction of large number of demands of customers.
CONCLUSION
It has been concluded from the above report that, it is the duty of the management of
organisation to implement different strategies which helps in development of the performance of
organisation and in result helps in attainment of competitive advantage. Porter's five forces and
Porter's generic are two strategies which are adopt by management to improve their competitive
position in market. This will provides large number of benefits like high sales , large customers,
good brand image etc.
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REFERENCES
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