CONTRIBUTION

Student’s Name Student’s ID Task Contribution

Nguyễn Ngọc Huyền Anh 20700088 Slide 20%

Trần Khánh Linh 21070331 1.1+1.2 20%

Nguyễn Thị Thanh Tuyền 20070376 1.3 20%

Nguyễn Thị Thư 21070592 Slide 20%

Nguyễn T.Thanh Hằng 21070886 1.4 1.5 20%

NOTE:
- Deadline: Content (12/10/2024)
- Highlight nội dung chính để cho vào slide
- References để cuối trang
- Task:
+ 1.1 + 1.2: 1ng
+ 1.3: 1ng
+ 1.4 + 1.5: 1ng
+ Slide: 2ng + conclusion
PART I.

1.1. Introduction of the company

1.1.1. Basic information

Legal Name UNILEVER PUBLIC LIMITED COMPANY

Trade Name: Unilever

Date of Establishment: September 2, 1929

Industry: Baby food, beauty products, bottled water, breakfast cereals,

cleaning
agents, condiments, energy drinks, healthcare, and hygiene
products,
ice cream, instant coffee, pet food, pharmaceuticals, soft drinks,
tea,
and toothpaste

Headquarter: Unilever House 100 Victoria Embankment London/Unilever

PLC
Port Sunlight Wirral Merseys

Purposes: “To add vitality to life”

Achievement: - AAA rating in 2023 on Forest, Water, and Climate CDP

- 74% of greenhouse gas emissions in our activities since 2015
- Unilever Vietnam also received the honorary award "50th
Anniversary Recognition Award" in the program "The Great
Awards"
awarded by the British Business Association in Vietnam
(BritCham)
on the occasion of the 50th anniversary of establishing
diplomatic
relations. between Vietnam and the UK
In the 2024 edition of the Gartner Supply Chain Top 25

Positioning: Many brand names in over 190 countries and 4.4 million retail
stores.

Founders: Anton Jurgens, William Hulme Lever, Samuel van den Bergh
 Website: https://www.unilever.com/our-company/

1.1.2. History
On September 2, 1929, British soap manufacturer Lever Brothers and Dutch margarine manufacturer
Margarine Unie merged to form Unilever PLC, a worldwide fast-moving consumer products
corporation. Its main office is in London, England. It was formally established on January 1, 1930
Logo
Logo Introduction: In 2004 Unilever unveiled a new logo design. The logo combines 25 complex
symbols that intertwine to form the letter U, replacing the old logo used since 1970.
Symbolism: The Unilever logo represents the identity and strategic vision for the slogan “To add
vitality to life,” which means connection and harmony. Unilever chose blue to symbolize trust and
stability.
Market Presence
Global Reach: Unilever operates in over 190 countries, with a strong presence in
developed and emerging markets. This global reach allows the company to cater to a
diverse consumer base.
Vietnam Entry: Unilever formally started operating in the Vietnamese market in 1995.

1.1.3. Business Model

Unilever PLC operates in 190 countries, Unilever PLC sells its goods through 4.4 million retail
locations in the top 10 growing markets. Of Unilever's €59.6 billion in revenue in 2023, 58% came
from emerging regions. Five business groups comprise the company's brands:
- Beauty & Wellbeing focuses on fairness, regeneration, and environmental harmony Includes brands
like Dove, Liquid I.V., Sunsilk, and Vaseline.
- Personal Care includes Rexona, Dove, Lifebuoy, LUX, and Axe. Leading in global deodorant and
skin cleansing categories, with top positions in oral care in many countries.
- Home Care focuses on emphasizing sustainable and affordable products through the Clean Future
approach. Brands include OMO, Domestos, Cif, and Comfort.
- Nutrition such as Hellmann's, Knorr, and Horlicks.
- Ice Cream is The world’s largest ice cream manufacturer with brands such as Wall’s, Ben & Jerry’s,
and Magnum.

1.1.4. Significant Achievements

During the operation, Unilever has been honored with the following prizes and accolades:

- Unilever ranked second in the 2023 study and was recognized by GlobeScan as a Sustainability
Leader for well over ten years.
For the fifth consecutive year, Unilever maintained its position in the restricted "Masters" category of
the Gartner Supply Chain Top 25 in 2023.
- The firm won the S&P Corporate Sustainability Assessment 2022 Global Gold Glass designation for
its outstanding performance in a number of environmental, social, and governance categories.
- In 2023, Unilever received recognition in all three categories: placing first in the #Media100 for the
fourth year in a row, second in the #Creative100, and third in the #Effective100. The WARC rankings
recognize excellence in efficiency, creativity, and media.
- The environmental non-profit organization CDP listed the corporation on its "A" list in 2023 in
recognition of its efforts to safeguard water security and forests.
- Unilever Vietnam also received the honorary award "50th Anniversary Recognition Award" in the
program "The Great Awards" awarded by the British Business Association in Vietnam (BritCham) on
the occasion of the 50th anniversary of establishing diplomatic relations. between Vietnam and the
UK

1.2. Analysis of Unilever’s Mission and Vision

1.2.1. Mission
The goal has been "to add vitality to life" ever since. The goal of Unilever's products is to make
people's lives better. Today, this goal is more evident in every Unilever product as all of the company's
offerings are designed to improve people's comfort, appearance, and health. This is best demonstrated
by Unilever's diverse portfolio of well-known brands, which includes Omo, Dove, Close-up, Lipton,
and others.

1.2.2. Vision
For every country in which it conducts business, Unilever develops a unique vision that is appropriate
for the social and cultural milieu while being true to its global goal. Unilever has a humanitarian and
ethical global agenda that aims to "make sustainable living commonplace." The corporation is
encouraged to lead the consumer products sector, especially in the area of sustainability, by the
corporate vision statement. Some of the key ideas in Unilever's vision statement are as follows:
Sustainability leadership; Future-ready and purpose-driven approach; Outstanding business
outcomes.

1.3. Unilever's 5 Force Model

Figure 1: The Porter’s Five Forces Model for Industry Analysis

Source: Adapted from Lazenby (2022: 137)
1.3.1 Competitive Rivalry or Competition (High)
Intense competition exists in the consumer products sector. Due to Unilever's competition with both
domestic businesses and multinational behemoths like Nestlé, Johnson & Johnson, and Procter &
Gamble, there is intense rivalry. Due to the limited level of product differentiation in many categories
and the extremely saturated market, businesses are forced to compete on attributes like brand loyalty,
quality, and price.

Apart from conventional rivals, Unilever is increasingly confronted with challenges from nascent
digital-only enterprises and diminutive local firms that exhibit agility and employ focused
promotional tactics such as influencer outreach and social media promotions. Through internet
channels, where price wars and promotional discounts are widespread, these enterprises can achieve a
sizable market share. By utilizing its strong worldwide brand, consistently introducing new products,
and emphasizing sustainability, Unilever lessens this.

1.3.2. Bargaining Power of Unilever’s Customer ( High)

Unilever faces high bargaining power from consumers, largely because of the low switching costs
in the FMCG market. Customers can easily switch between competing brands if they perceive
changes in pricing, product quality, or safety standards​. The proliferation of e-commerce platforms
also gives buyers instant access to product reviews and alternatives, heightening their ability to
compare and switch brands.

Consumers now expect constant innovation in terms of product quality, packaging, and sustainability.
This pressure forces Unilever to focus on creating products that stand out, not just in terms of quality
but also in environmental and social responsibility​. Additionally, the high volume of consumer data
available online empowers buyers to make informed decisions, making it essential for Unilever to
adapt its offerings based on real-time consumer trends​.

1.3.3. Bargaining Power of Unilever’s Suppliers (Moderate)

The bargaining power of suppliers in the consumer goods industry is moderate. Unilever works with
a vast network of suppliers globally, including smallholder farmers and large international companies
for essential raw materials like palm oil and paper​. However, recent supply chain disruptions (due to
factors like global economic shifts) have increased supplier leverage, especially when suppliers hoard
or manipulate supply to drive up prices.

Nonetheless, Unilever's low switching costs to alternative suppliers help mitigate the potential for
supplier dominance. The diversification of suppliers across 150 countries ensures that no single
supplier has excessive power over the company​. To further reduce supplier power, Unilever maintains
long-term agreements and sustainable sourcing initiatives, creating a mutually beneficial
relationship with its suppliers while securing consistent quality​.
1.3.4. Threat of Substitutes Product (Very High)

The threat of substitutes in the FMCG industry is very high. Consumers have a wide range of
alternative products for nearly every category in which Unilever operates, from personal care to food
and hygiene. The low cost of switching between products amplifies this threat, as consumers can
easily try new brands. For instance, new organic and eco-friendly alternatives have emerged as strong
competitors in the personal care market, threatening traditional brands.

Unilever must continually differentiate its products to stay relevant. With substitutes available both
online and in brick-and-mortar stores, the company focuses on product innovation, sustainability,
and unique branding to retain consumer loyalty​. Additionally, Unilever faces competition from
cheaper knock-offs, which can erode market share if they offer similar quality at a lower price.

1.3.5. Threat of New Entrants (Low to Moderate)

The barrier to entry in the FMCG industry is low to moderate, primarily influenced by digital
transformation and e-commerce expansion. Digital platforms have reduced the cost of entry, allowing
startups to bypass traditional capital-intensive requirements like brick-and-mortar stores. As noted,
low switching costs for consumers in digital channels make it easier for new companies to enter the
market​.

However, capital-intensive investments in R&D, production, and marketing remain significant

hurdles. Unilever’s strong global brand presence, economies of scale, and vast distribution networks
act as formidable barriers for new entrants​. The company has invested in advanced
e-business-to-business platforms, such as Shikhar in India and GoToko in Indonesia, enhancing its
ability to serve small retailers while creating an ecosystem that is difficult for new entrants to
replicate​. While new digital firms may capture niche markets, brand loyalty and high marketing
costs in this industry make it difficult for new competitors to pose a major threat​.

Conclusion:

The threat of substitutes and competitive rivalry are particularly high, requiring Unilever to invest
heavily in product differentiation and customer loyalty. Moreover, digitalization and e-commerce
growth have reshaped traditional entry barriers, emphasizing the need for agility and innovation to
maintain its market leadership
1.4. Unilever VRIO Framework

VRIO analysis for identifying distinctive resources and capabilities

VRIO is the best technique of evaluating and analyzing company's resources and its resulting
competitive advantage for the company (Adefarati and Bansal, 2019). It is a framework based on
resources that are valuable, rare, imitable and organized.

Resources of Valuable Rare Imitable Organization Competitive

Unilever advantage for
the company

Goodness talent Yes No Competitors Yes Competitors can

(or human can imitate imitate by hiring
capital) by hiring and obtaining
for managing and similar human
legal and obtaining capital.
regulatory similar
obligations. human
capital.

Digital strategy Yes, as in the No, as Easier to be Yes, with the Critical factor of
is successfully absence of it, competitors imitated. help of this the industry
implemented. competitiveness are also strategy, but not able to
get weaker having good Unilever is a give sustainable
digital leader in the competitive
strategy. industry. advantage.

Financial Yes, funds are No Yes, as Unilever is Yes, in limited

resources considered to be liquidity in enjoying scope & for a
blood of every the market sustainable temporary
business and financial period.
financial performance
instruments & position for
can be many years.
accessed by
the
competitors
as well

Availability of Yes Yes, as Yes, can be Yes Source of

critical raw competitors imitable sustainable
materials need to competitive
arrive advantage.
to terms
equivalent
to
domineering
market
position
of Unilever
VALUE
Unilever’s extensive portfolio of well-known brands such as Dove, Lipton, and Ben &
Jerry’s provides significant value. These brands are not only widely recognized but also
highly trusted by consumers. Unilever’s strong emphasis on sustainability and innovation
adds value by aligning with the increasing consumer demand for environmentally friendly
and socially responsible products. The company’s global distribution network ensures that its
products are accessible across diverse markets, enhancing their value by meeting consumer
needs effectively.
Unilever’s commitment to research and development (R&D) also adds value. The
company invests heavily in R&D to drive product innovation and improve existing
products, thereby responding to changing consumer preferences and market trends. This
focus on innovation allows Unilever to offer high-quality products that meet or exceed
customer expectations, further contributing to its competitive advantage.

RARITY

Unilever’s extensive brand portfolio is rare in its breadth and depth. The company
manages over 400 brands, many of which are household names with strong consumer
loyalty. This level of brand equity is rare in the consumer goods industry, where most
competitors manage fewer brands with less recognition.

Additionally, Unilever’s Sustainable Living Plan is a rare capability. This initiative

integrates sustainability into the company’s core operations, setting ambitious targets to
reduce environmental impact and improve social outcomes. While other companies have
sustainability programs, Unilever’s comprehensive approach and its integration into business
strategy provide a distinctive competitive edge that is not easily replicated.

IMITABILITY

Unilever’s brand equity, built over decades through consistent quality and marketing, is
difficult for competitors to imitate. The company’s established market presence and
consumer trust are products of long-term investment and strategic management, which are
challenging for new entrants or existing competitors to replicate quickly.

The company’s deep commitment to sustainability and its successful implementation of its
Sustainable Living Plan also have high inimitability. The integration of sustainability into
every aspect of the business involves complex changes in processes, culture, and
stakeholder engagement, making it difficult for competitors to match Unilever’s level of
commitment and effectiveness.
Moreover, Unilever’s global supply chain and distribution network are not easily
replicable. The company’s ability to efficiently manage and optimize its supply chain, along
with its established relationships with suppliers and retailers, provides a significant
competitive advantage that is challenging for competitors to duplicate.

Organization
Unilever’s organizational structure supports the effective utilization of its resources and
capabilities. The company operates with a decentralized structure that allows for
flexibility and responsiveness to local market needs while maintaining global strategic
oversight. This structure enables Unilever to leverage its resources efficiently and adapt
to diverse market conditions.

The company’s management systems and processes are designed to support its strategic
objectives. For example, Unilever’s focus on innovation is supported by its R&D facilities
and cross-functional teams that drive product development and market research.
Additionally, Unilever’s commitment to sustainability is embedded in its organizational
culture and supported by dedicated teams that focus on achieving the company’s
sustainability goals.

Unilever’s leadership and corporate culture emphasize collaboration, continuous

improvement, and a commitment to its values, which align with its strategic objectives and
enhance its ability to fully utilize its resources and capabilities.

1.5. Institutional factors can affect companies in Vietnam

Institutional factors can have a significant influence on companies operating in
Vietnam, including Unilever. One of the most impactful factors is rapid economic
growth, which creates substantial opportunities for companies to expand. In 2022,
Unilever Vietnam achieved a turnover of over €1 billion, driven by double-digit growth
across various segments. This strong economic environment supports Unilever's efforts
to broaden its market reach and increase its consumer base, thereby ensuring continued
business performance in a thriving market.

Consumer preferences are another critical factor, particularly the growing demand for
natural, sustainable products and healthier options. Unilever has responded to these
trends by innovating its product formulations and packaging to align with local
consumer demands. Additionally, the company has strengthened its presence in both
traditional and modern retail channels, including online sales. Digital transformation
initiatives, such as the 'OrderUNow' application and the UShop platform, have
enhanced the supply chain and facilitated direct-to-consumer sales, keeping Unilever
relevant and competitive.

Sustainability initiatives and gender inclusion also play crucial roles in Unilever's
success in Vietnam. The company has actively engaged in increasing the recyclability
of its packaging, collaborating on waste management initiatives, and launching
environmental campaigns. Efforts to reduce virgin plastic use and ensure the
recyclability of packaging underscore Unilever's commitment to environmental
responsibility. Moreover, Unilever's focus on gender balance and empowerment,
recognized by UN Women, emphasizes its dedication to inclusive growth, contributing
to a positive corporate image and long-term societal impact.

REFERENCES
Unilever - Wikipedia
Unilever Global: Making sustainable living commonplace | Unilever

Source: ( Tuyen)

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nalysis/96941969

https://panmore.com/unilever-five-forces-analysis-porters-model-recommendations

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ort_Sample-1.pdf

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