Porter's Five Forces Of Unilever

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PORTER’S FIVE FORCES Unilever are known as the third largest producer of consumer goods company and the world largest maker of ice cream. Unilever is a strong multinational company that compete with other strong mutinational companies like Nestle, P&G,COCA COLA, Cadbury, and etc. This porter’s five forces model determines about the rival and industry of the market where Unilever operate. THREAT OF NEW ENTRY Threat of new entrants discuss about the competitor who will entering business world. As unilever take place in different country so threat of new entrants are differ from each market. We can take one fact , Unilever has strong and big brand image that will make new entrants have to create high cost to set up their business. Every year…show more content…
Unilever endlessly under menace of its competitor and substitue products. The competitors likely to spend a big amount to improve their research to develop new products. As the product is common to be used, the higher the treat of substiute.For example the home made product where the customer are more likely to prepare home made pasta sauce than buying Bertolli pasta sauce. Unilever has to be more active in knowing what their customer wants exactly so their product would not be easily be substituted by the competitors. The research are being continue and development of customer and product has brought about revolution in customer market. Today customer likely to try new things which is better. This case has made customer loyalty to the product…show more content…
This competitor can potentially take some place of Unilever products.Basically every company who is competing in an industry environment has a desire to be superior to its competitor. So in recommendation, Unilever can use some of the strategy like cost leadership strategy. By this strategy Unilever are able to provide lower prices for its product than its competitor, but in other hand they still get a satisfactory profit. Low price function as barrier for competitor to enter the competition. This strategy is effective especially for customer who easily affected by price shift. To achieve better performance by focused in customer loyalty, Unilever can use differentiation strategy. For example Unilever can add some additional features to comfort the consumer especially on durable goods product or other unique things that is difficult to imitate by the competitor. The next strategy that I recommend is integrated position strategy. By this strategy Unilever have to think how to survive with the environment that control the company,so it’s mean that the company didn’t control the environment but the environment itself. Unilever have to deal with the environment phase and not outdated. Last recommendation, by employ cross-market subzidation to win customer heart and the sales from the competitor in country markets. This strategy is very appropriate for Unilever as a multinational company that

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