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Unilever Five Forces Essay

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PORTER’S FIVE FORCES what is porter’s five forces tool? The porter’s five force tools is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it help to understand both the strength of current competitive position, and the strength of a position considering moving into. There are five important forces that determine competitive power in business, the power included - 1. Supplier power here you access how easy it is for supplier to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of the product or services, their strength and control, the cost switching from one to another, and so on. The fewer of the supplier choice, and the more you need …show more content…

Threat of Substitutions Continuous research and development in the consumer and household products has market and today customer 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 products development. Unilever has to be very adoptive and closer to its customers so as to get what exactly its customers want. 5. Threat of New Entry As Unilever operates in 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 it presence almost in every market either through its subsidiaries, branches or franchises. But its brand image is a strong barrier in the way of new …show more content…

Unilever information technology is global information headed by a global chief officer, with a strategy to deliver competitive cost effective information technology solutions to support the business. A common technology framework and standard for architecture, key technologies, processes, and information services allow Unilever to leverage its scale in information technology. For an example, this approach is supporting the setting up and the operation of regional shared services centers for ‘’back office’’ operations notably in finance and Human Resources, which in some cases are outsourced. The information technology function is a key enabler for the “One Unilever” change from multi-local to a globally aligned business through :- • improving information technology capabilities and process • improving overall information technology infrastructure and service value • strategic outsourcing in selected key area The implementation across the group of a world class harmonizes ERP system in each region in support of the “One Unilever” program in progressing

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