UNILEVER COMPANY

Unilever is an Anglo-based multinational and multi business consumer goods

company. It is co-headquartered in Rotterdam, Netherland, and London,
United Kingdom. Its products include food, beverages, cleaning agents, and
personal care products. It is the worlds third largest consumer goods
company measured by 2012 revenue. Unilever is the world largest producer
of food spreads, such as margarine. Its products are available in around 190
countries.

Strategy option for entering and competing in new market

As being one of the biggest company in the world, Unilever still have the
huge opportunities to enter to the new market as per to expand the business
into the foreign markets in order to gain the customers around the world. It
has its global key brands that help it to gain the huge profit throughout the
world. In entering and competing in foreign markets for its cosmetics and
toiletries product, Unilever follows a global strategy, also called by a thinkglobal and act-global strategy, The strategy using essentially the same
competitive strategy approach in all country markets where the company
has a presence (with only minimal responsive to local conditions), sells much
the same products everywhere.
Unilever can more unify its operations and focus on establishing a brand
image and reputation that is uniform from country to country. It strategy
implies to the Unilever success in building strong character brand such as
Dove, Sunsilk, Rexona and Lux. Moreover, with a global strategy Unilever
should coordinated its marketing, operational and distribution worldwide.
To win customers and sales away from select rivals in country markets,
Unilever employ cross-market subsidization. This offensive strategy is
appropriate for Unilever which is compete in multiple country markets with
multiple brands and wide variety of products. Finally in entering the
emerging-country market Unilever prepare to compete on the basis of low
prices. Unilever pursued this strategy because consumers in emerging
markets are often highly focused on price, which can give low-cost local
competitors the edge unless a company can find ways to attract buyers with
bargain prices as well as better products. All strategies executed by Unilever
for competing in foreign market resulting in moderate 5% sales growth in
2006 just above market performance ensured that Unilever kept its
position as third largest player in cosmetics and toiletries with a 7% market
share. Unilever decision to introduce its product on emerging market such as
Asia-Pacific, Latin America and North America implies to the high
contribution of Unilever.

Network strategies
Unilever has generated many networking strategies which has helped it to
grow faster and made the top company in the world. Unilever just invest up
to $8 billion each year to communicate its brands to the consumers across
the globe. Unilever has used the following strategies to as the networking
strategies:

A people centric approach

Mixing the global and the local media
Innovation through partnership
It does communication with all the people where its headquarters is
placed
Keep the product and the process simple
Choose native people for the different countries for running the
business

Due to these various strategies used by the Unilever, it has become the best
company in he world. It is based on the polycentric approach. It works
according to the culture and the life style of the people throughout the
different counties in the world.
In the same way, it used the different types of media for its networking.
Digital networking, Facebook, Twitter and many more are in use to promote
the products of the Unilever,

Rationalization strategies
Unilever company since produce the different kind of the products, it has
maintain its cost in order to sell to the consumer at the reasonable price. It
focuses on the access of the consumer in the large amount by selling the
products on the very reasonable price.
Unilever basically wok on the cost efficiency products they uses the raw
material from among the various countries in a very low rate and produce
the product in a low cost. Cost is the competitive advantage of the Unilever
in compare to the other companies.
Since, Unilever is also the multinational company, it has its companies in
various countries of the world. So, while producing the products in the
different country it used the resources from among the different countries
where its sister companies are opened. It has widely used the human
resources, finance, research and development in many countries in order to
minimize the cost of the products.

Diversification exists when all the businesses in which a firm operates share
a significant number of inputs, production technologies, distribution
channels, similar customers, and so forth. In contrast, related linked
diversification exists when the different businesses that a single firm
pursues are linked on only a couple dimensions, or if different sets of
businesses are linked along very different dimensions.
Unilever exhibits a related linked corporate diversification strategy. Using
the textbook example, it may follow that Unilevers:

Home and personal care businesses share similar production

technology and customers

Food and refreshments businesses share similar suppliers

Home care and food businesses have no common attributes

Unilevers successful implementation of this strategy helps it to sustain its
market leadership.

Assignment I
Strategies management II
Ace Institute of Management

Submitted by: UPAMA PANDEY

BBA VIII
Sec A
ROLL: 13030312

Submitted to: BIRAT SHRESTHA

5th August, 2016