Strategic Management and Unilever

Topics: Strategic management, Personal care, Marketing Pages: 110 (26563 words) Published: June 30, 2011
Global Strategy Advisors. . .
Challenging boundaries and beyond

February 19, 2006 Unilever Unilever House, Blackfriars London EC4P 4BQ, United Kingdom Sent Via Electronic Mail RE: Strategy Analysis Ladies and Gentlemen: At the request of the Board of Directors of Unilever, we provide herein our analysis of the Personal Products Industry and a strategy analysis of both Unilever and its biggest competitor, Procter & Gamble. The enclosed analysis also provides recommendations for Unilever to improve its competitive advantage.

Respectfully submitted,


Procter & Gamble, Unilever and the Personal Products Industry

Global Strategy Advisors Lee Ann Graul, Sherry Henricks, Steve Olp and Charlene Strohecker

University of Maryland, University College AMBA 607 February 19, 2006

Table of Contents
1. Executive Summary 2. Industry Analysis-Personal Products Industry a. Introduction b. Industry Defined c. Historical Data Analysis d. Major Competitors e. Trends and Industry Outlook f. Strategic Challenges and Opportunities i 1 1 1 2 3 3 5 5 6 6 8 10 10 11 13 14 15 15 16 17 19 20 22 22 24 25 30 31 32 33 34

g. Industry Conclusions 3. Procter & Gamble and Unilever a. Competitor Analysis: P&G b. Competitor Analysis: Unilever c. Strategy P&G i. Business Level ii. Global iii. E-Business iv. Corporate d. Strategy: Unilever i. Business Level ii. Global iii. E-business iv. Corporate e. Conclusions and Recommendations 4. Appendices A. SIC Code 2844 and Industry Description B. Global Personal Products Industry, Market Segmentation C. Personal Products Industry, Five Force Analysis D. Global Personal Products Industry, Market Share E. Market Growth F. Producer Price Index (PPI) for SIC 2844 G. Industry Growth Rate-Sales H. Average Revenue Growth: Industry

I. J.

Historical Data-Personal and Household Products Household and Personal Prod. Industry, Ranking by Revenues, Profits

36 38 39 40 41 42 43 51 53 55 61 66 67 68 69 71 72 73 74 75 76 79 84 85

K. Company Ranking by Personal Care Revenues L. Trend Line, Exports, SIC 2844 M. Trend Line, Imports, SIC 2844 N. Fastest Growing Markets O. Value Chain Analysis, P&G and Unilever P. P&G, RBV Analysis Q. Unilever, RBV Analysis R. P&G Financial Analysis S. Unilever Financial Analysis T. P&G SWOT Summary U. Unilever SWOT Summary V. History of P&G Global Expansion W. History of Unilever’s Global Expansion X. Dynamic Resource-Based Model of Competitive Advantage Y. Unilever’s Early Use of the Internet, 2000 Z. Global Data Synchronization Network AA. Safeway, Unilever Complete Global Data Synchronization Project BB. Unilever Initiatives in Information Technology CC. P&G Portfolio: Product Groups & Businesses DD. Unilever Portfolio: Product Groups & Businesses EE. P&G e-Business Network 5. Endnotes

P&G and Unilever Executive Summary


This paper provides an examination of the personal products industry as a whole, including a review of the historical market share, financial performance, competition, and industry trends. Additionally, a discussion of industry opportunities and challenges is conducted, presenting issues such as increases in the cost of raw materials and operations, a slow recovery of growth due to the economy, changes in government regulations, and the ever changing wants and needs of the consumer. These conditions create the need for companies to respond quickly, develop innovative new products, and find ways to become more efficient while reducing costs. The industry itself is an attractive one, having steady growth, emerging global markets, and repeat purchases (consumables products), but also requires achieving economies of scale, significant investing in R&D, and developing brand loyalty. An examination of two major competitors in this industry, Procter & Gamble (P&G) and Unilever reveals a very competitive industry that is not yet highly consolidated. P&G is an industry leader focused on innovation, knowledge sharing, improved efficiencies,...
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