Published by MBA Skool Team, Last Updated: September 04, 2021
SWOT analysis of Unilever analyses the brand by its strengths, weaknesses, opportunities & threats. In Unilever SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Unilever to benchmark its business & performance as compared to the competitors. Unilever is one of the leading brands in the FMCG sector.
The article below lists the Unilever SWOT (Strengths, Weaknesses, Opportunities, Threats), top Unilever competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
Foods, beverages, cleaning agents and personal care products
Individuals and households
Positioned as brands with a purpose
SWOT Analysis of Unilever
For Unilever, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Let us start the Unilever SWOT Analysis:
The strengths of Unilever looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Unilever :
1. Unilever operates in nearly 190 countries around the world and hence, has a global footprint combined with top of the mind brand recall
2. Unilever has broad portfolio of brands and a diversified product range, positioned to tap into the changing consumer preferences across the world
3. Research and Development initiatives to bring to the market innovative and cutting edge products in tune and in line with consumer preferences.
4. Unilever follows flexible pricing and expertise in distribution channels that manage to reach the nook and the corner of the globe.
5. The economies of scale arising from its breadth of operations as well as synergies between its many manufacturing facilities, which totaled 270 locations around the world at last count.
6. Products are globally famous yet retain a distinct local flavor.
7. Unilever company has over 170,000+ employees globally
8. Strong and effective advertising and marketing
9. Excellent CSR initiatives have strengthened its position worldwide
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Unilever SWOT Analysis:
1. Substitutable products especially in the emerging markets in Africa and Asia where the rural consumers in the hinterland often use traditional and natural alternatives
2. Cut-throat competition means constant price wars which lead to less margins
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Unilever SWOT Analysis:
1. Globalization and the proliferation of global media
2. Emergence of the health conscious consumer in the developed world.
3. Good track record of social and environment responsibility which appeals to the ethical chic consumer who like to buy and consume products and brands that are responsibly made and sustainably complete.
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Unilever are as mentioned:
1. Ongoing global economic crisis
2. Local products as alternatives to its brands
3. Competitive market where the other global giants like P&G and Nestle in addition to a host of local players challenge its dominance in the Trillion Dollar FMCG (Fast Moving Consumer Goods) space.
There are several brands in the market which are competing for the same set of customers. Below are the top 6 competitors of Unilever:
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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