Economic downturn Strength Strong portfolio:
Public Domain Unilever is a leading consumer goods business in the global market. A SWOT analysis of the company highlights business strengths that ensure long-term success. The SWOT Analysis model identifies the relevant strengths and weaknesses internal strategic factors and the opportunities and threats external strategic factors.
The business is in a strong position to withstand the threats in its external environment. However, Unilever must consider all of the factors outlined in this SWOT analysis to guide strategic formulation for global operations.
A SWOT analysis of Unilever depicts the conditions of the business, as well as its external environment. Strong brands Economies of scale Strong global market presence Unilever has some of the strongest brands in the consumer goods industry.
This strength enables the company to penetrate markets and effectively compete against other firms. For example, the company has increased its product portfolio through years of mergers and acquisitions, leading to organizational growth and corresponding increases in revenues.
Through years of international expansion, the company has also increased its market presence, which is a strength that reinforces brand popularity. This section of the SWOT analysis presents the internal strategic factors that impose barriers to organizational and business development.
Unilever must address the following weaknesses: For example, even though the company heavily invests in its product development processes, other firms can imitate Dove and Rexona products.
Also, in spite of its broad product mix, Unilever is weak because of limited diversification in businesses outside the consumer goods industry.
Moreover, the company lacks direct strong influence on consumers, considering that retailers are the ones who directly affect buyers.
Thus, based on the internal strategic factors in this section of the SWOT analysis of Unilever, the weaknesses emphasize the importance of diversification, innovation, and enhanced marketing efforts.
Opportunities for Unilever External Strategic Factors Unilever must take advantage of growth opportunities in consumer goods markets around the world. This section of the SWOT analysis determines such opportunities or external strategic factors that can facilitate business development.
Business diversification Business enhancement for environmental conservation Market development Unilever has opportunities to diversify by entering businesses outside the consumer goods industry.
Diversification reduces market-based risks and improves business resilience. Similarly, the company has an opportunity to make its business more sustainable and environmentally friendly to attract and retain environmentally conscious consumers.
For example, the company can market its Lipton products as health drinks for consumers with special diets. The SWOT Analysis model considers these external factors as threats that the company must strategically tackle. Product imitation is also a major threat against Unilever.
Also, retailers impose a threat by selling their own brands.
These brands are known as house brands, store brands or generic brands. For example, the weaknesses of limited business diversification and imitable nature of products are significant because they influence business stability and performance. Also, Unilever needs to consider product innovation as an opportunity to boost business performance.
It is recommended that the company must use its strengths, such as economies of scale, for product innovation to address competition and the threat of imitation. Recent research on team and organizational diversity: SWOT analysis and implications.
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A SWOT analysis of Unilever depicts the conditions of the business, as well as its external environment. Strategies based on business strengths and market opportunities .
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