Threat of Substitution
Continuous research and development in the consumer and household products has brought about a revolution in the consumer market and today customers like to try something new and better. This trend has reduced the customer loyalty and product lifecycle.
Unilever is under continuous threat of substitute products and its competitors are already spending huge sums on R&D and new product development. Unilever has to be very adoptive and closer to its customers so as to get what exactly its customers want.
Threat of New Entry
different geographical markets so threat of new entrants varies in different markets. In well developed countries where big players like Unilever have a very strong hold and brand image, it is very hard for a new entrant to enter the market because of higher cost to set up a business. On the other hand in less developed markets, it is easier to enter as legal requirements and capital needed is not as much as in a developed market. Unilever has its presence almost in every market either through its subsidiaries, branches or franchises.
Conclusions and Recommendations
in a highly competitive and volatile environment and especially current economic crisis have made it difficult for many businesses to operate profitability. Legal requirements, technical changes and change in the habits of the customers have created problems for the businesses 所以have to be updated and cotinuos R&D is solution to many of the problems. environment where Unilever operates is with higher level of competition and low level of profit margins. In this situation best strategy is to keep customers satisfied and loyal, continuos R&D, cost control and be responsive to the competitors.