SWOT

Strength:-
Part of Unilever group, therefore having a powerful brand equity in FMCG segment.
Got 20,000+ employees, more than 6 million outlets with direct reach to over 1.5 million
retail outlets making it one of the most leading FMCG companies.
2 R&D centres in India, i.e. in Mumbai and Bangalore
Offers over 20 consumer categories with over 700 million Indian consumers using these
products
CSR activity- Project Shakti, plastic recycling, women empowerment, etc.
Strong legacy of HUL since its inception in 1934
Revenue more than $5 billion
Good visibility owing to strong advertising via TV ads, print ads, social media and digital
marketing.
Weaknesses:-
Due to the presence of other big FMCG brands, market share is limited.
Hindustan Unilever has been criticised for items such as skin lightening products.
Opportunities:-
HUL can tap into rural markets while also increasing its urban reach.
Mergers and acquisitions can help the brand grow even stronger.
People's purchasing power rises, resulting in increased demand.
Threats:-
1. HUL's company may be harmed by intense and growing competition from other FMCG
companies.
2. FDI in retail, allowing foreign brands to flourish.
3. Hindustan Unilever's market may be harmed by unbranded and local items.
 Porters 5 Forces

Competitive Rivalry/Competition: High

Due to the vast number of enterprises, strong aggressiveness, and low switching cost, HUL
faces intense competition from its industry competitors.
Bargaining power of buyers: High
Due to low switching cost and high quality information consumers can compare the price
and quality of the product with other brand’s product and can easily switch to other one.
Bargaining power of suppliers: Moderate
Supplier bargaining power has an impact on Unilever's industry environment since it affects
the level of supply accessible to enterprises. External variables that contribute to Unilever's
limited bargaining strength of suppliers include the following:
• A moderately sized individual supplier
• A moderately sized supplier population
• Overall supply is moderate.
Unilever has significant suppliers, such as overseas companies that supply paper and oil, but
the average supplier is a medium-sized company. This external influence has a moderate
impact on the consumer products industry's environment. Furthermore, due to the
moderate population of suppliers, they are able to exert significant but limited influence
over companies like Unilever. Similarly, the moderate level of overall supply contributes to
providers' important yet restricted influence.
Threats of Substitutes: Low
Low switching cost, Low substitute availability, Low performance to price ratio of
alternatives are the external elements that cause the weak force of the threat of
substitution in HUL. Consumers can simply substitute Unilever's products due to the cheap
switching costs. This external factor exerts a significant influence on the business and the
consumer products industry. However, because substitutes are scarce, substitution's total
influence is lessened. The threat of substitutes is a modest issue in the Unilever business,
according to this component of the Five Forces research.
Threats of new entrants: Low
Strong brands, such as Unilever's, are expensive to develop. The threat of new entrants
against the company is weakened by this external element. Unilever also benefits from large
economies of scale, which allow it to offer competitive prices and great organisational
efficiencies that emerging businesses lack. As a result, despite new comers, the company is
still thriving. The threat of new entry is only a modest problem in Unilever's business,
according to this component of the Five Forces research.