The Global Company Strengths

Topics: Economics, Mergers and acquisitions, Multinational corporation Pages: 3 (688 words) Published: January 18, 2013
UNILEVER

Strengths

* Recognise as a Global Company
Unilever is a well known global company with presence almost in more than 170 countries and it is registered at various stock exchanges around the globe which makes it a really global company with all the privileges of a global company like economies of scale, access to global resources and above all synergy of resources and operations.

* Strong brand portfolio
Unilever has established a very strong relationship with retailers by offering them good margins and incentives, which are very important for a company in the consumer brand market. This provides Unilever strength to reach the ultimate consumers. * Strong relationship with retailers

Unilever has established a very strong relationship with retailers by offering them good margins and incentives, which are very important for a company in the consumer brand market. This provides Unilever strength to reach the ultimate consumers.                                                     

* Economies of scale
Economies of scale occur when increased output leads to lower long run average costs. As a global company Unilever has reach to universal cheap resources. Because of its mass scale production it has ability to overcome the bargaining power of suppliers which results in lower cost of production.    

* Research and development
Unilever is an innovative company and investing a huge sum on research and development of new products and brands. Because of this ability Unilever has created high entry barriers to the global consumer market. It has more than 61 innovation centres and 4000 academic researches.      

* Excellent management and human element
Unilever has a pool of very skilled managerial capabilities in the form of its human resource capital from around the world in each geographic region. Its top management belongs to 21 different countries. This also helps Unilever to understand and manage local needs of customers,...
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