Strategic Business Analysis: Unilever's Path to Growth Strategy
Table of Contents
Strategic Business Analysis: Unilever's Path to Growth Strategy3
Unilever background3
Task 1: SWOT Analysis3
SWOT Analysis3
1- Strengths:3
2- Weaknesses:4
3- Opportunities:4
4- Threats:5
Pros6
Cons6
Problems Appears10
Task 2: Unilever Strategy 'Path to Grow'13
Elements of Path to Growth strategy13
Brand Restructuring15
Geographic Expansion18
Unilever Information Program19
Supply Chain Restructuring20
Task 3: 'Path to Grow' performance23
Results of Path to Growth Strategy23
Unilever's Future Outlook24
Task 4: Strategic Alternatives27
Recent changes in Unilever31
Six Best Practices to Follow34
1.Focus Segmentation Criteria On Joint Value35
2.Align Suppliers With Supply Chain Strategy36
3.Manage The Innovation Funnel Across Functions36
4.Translate Demand-Driven Manufacturing Into Supply Strategy37
1.Manage Globally Through a Matrix37
2.Accept That Suppliers And Plants Are At Different Stages And Execute Accordingly37
References39
Bibliography40
Strategic Business Analysis: Unilever's Path to Growth Strategy
Unilever background
Unilever is demand-driven leader in building design and supply networks internally and externally. The company is far along its supplier relationship management (SRM) journey? with its goal of an integrated supply chain? from the supplier's plant to the customer. This strategic sourcing approach includes six facets:
Relationship restructuring and strategic alliances with key suppliers
Global sourcing? with a focus on profitably balancing supply and demand across geographies
Best-price evaluation? modeling “should costs?” and? where needed? price renegotiation
Volume concentration through supplier consolidation and redistribution? as well as volume pooling
Improving product specification through value analysis and engineering? pursuing alternates and substitutes? and optimizing lifecycle costs
Joint process improvement with suppliers? early supplier involvement? and productivity-gains and integrating-logistics sharing
Task 1: SWOT Analysis
SWOT Analysis
1- Strengths:
Leadership positions in the Detergent powder segment: With 75 % of the market? Unilever brands (Omo? Minerva and Campeiro are ranked first ? second and fourth respective in terms of Market Share)
Growth rate: The Detergent Market segment is registering a 17% annual growth
Brand Recognition: Unilever brands are well known and perceived by Brazilians. Most of Brazilian have either seen or tried one of Unilever brands in this segment. We have good rates of Top of Mind? Brand knowledge and Market penetration (Thompson and Strickland, 2005)
2- Weaknesses:
Distribution: Unilever is facing a big Distribution issue in the NE; Unilever detergent skus? are not present on shelves in approximately 75?000 small outlets. Knowing that Northeasterns are not fund on going to big accounts such as Wal mart? Carrefour or Tesco? but prefer going to small stores? the lack of Distribution is an extremely serious issue (Thompson and Strickland, 2005)
Price : Unilever premium brand? Omo? is perceived as a very expensive product? while the alternatives presented by Unilever are perceived as having a lower quality
Consumer Expectations : Excluding Omo? other Unilever skus have problems in perception? and are deposes by P&G brands (Ace and Bold)
3- Opportunities:
The Northeastern market is not saturated yet: There is a big possibility of Growth. Purchasing power of the low income has increased by 27%. The North East is a 48 M market) Big Potential. 81?250 Tons of soap used versus 42?000 tons of Detergents. Brazilian government encouraging investments in NE ? by providing tax incentives.
Frequency of Wash: Northeastern women wash frequently (Every day). Cleanliness is part of their culture
28% of Northeastern have washing machines
4- Threats:
Economic situation: Brazil's economy is facing big problems ...