Professional Documents
Culture Documents
2
Contents
Introduction........................................................................................................................ 2
1, Unilever Viet Nam......................................................................................................2
1.1, Mission, vision, strategic goal, objective of Unilever...........................................2
2, The impact and influence of the macro environment on the company and its strategies. 3
2.1, STEEP analysis....................................................................................................3
3, Porter’s Five Forces....................................................................................................8
2.1 SWOT analysis...................................................................................................11
4, Internal resources and capabilities of the company...................................................12
4.1, Value chain.........................................................................................................12
4.2, VRIO framework................................................................................................13
Investment in research and development..............................................................14
4.3, Stakeholder mapping..........................................................................................15
4.4 Organization structure.........................................................................................16
5, Strategic planning for company................................................................................18
5.1 Goal and objectives.............................................................................................18
5.2, Strategic direction...............................................................................................18
5.3. Business Strategy................................................................................................20
Conclusion....................................................................................................................... 21
Reference.........................................................................................................................21
Introduction
Unilever is a multinational firm based in the United Kingdom and the Netherlands that manufactures and distributes
consumer packaged goods (CPGs), such as personal and household hygiene products. Family, food, and tea and tea-based
beverages are some of my favorite things. Lipton, Knorr, Cornetto, Omo, Lux, Vim, Lifebouy, Dove, CloseUp, Sunsilk,
Clear, Pond's, Hazeline, Vaseline,... are just a few of Unilever's well-known brands. Unilever has proven to be one of the
world's most successful firms, with more than 265,000 workers working in more than 500 companies in 90 countries across
the world and a global yearly profit of roughly 40 billion euros. business of consumer health care (Personel Care). Unilever,
along with Proctol & Gambel (P&G), presently controls the global market for these goods. Unilever is regarded as a leader
in the field of sustainable development. For the previous 11 years, the company has dominated the food industry on the Dow
Jones Sustainability Index, a feat no other company has ever achieved.
1, Unilever Viet Nam
1.1, Mission, vision, strategic goal, objective of Unilever
Mission : “To add vitality to life”
With products that are healthy for them and others around them, Unilever's purpose is to make people feel comfortable,
perfect their beauty, and get rid of life's troubles. And they do it by designing and delivering high-quality products at cheap
costs to customers all over the world. Inspire people to make a huge difference in the world through tiny everyday activities
and establish a new way of doing business with the goal of increasing the company's growth while minimizing
environmental effect.
Vision : A clear direction
Unilever believes in the ability of its brands to enhance people's lives and generate good things, as stated in the above
missions. It is each member's responsibility to contribute to the Group's growth. Unilever is cognizant of global issues like
climate change... Consideration of operations' greater impact is in line with Unilever's beliefs and serves as the foundation
for establishing who they are.
Objective:
Long-term goal: Meet the everyday demands of consumers throughout the world by anticipating customer and
consumer wants and responding creatively and competitively with branded products to improve quality of life. Unilever, in
particular, is focused on the objective of sustainable development and considers it one of the top goals, as seen by its
development activities that are independent from environmental impact.
Short-term aim: According to data collected in 2010, Unilever's short-term goal is to double its income. This goal is
achieved by particular methods that adhere to the criteria outlined in the long-term objectives, with an emphasis on long-term
sustainability..
Strategic goals:
Unilever's development strategy is based on the Sustainable Development Plan, which strives to achieve the ultimate
goal of making the world a more sustainable place for everyone. Unilever, in particular, has embarked on a long-term
development strategy for its whole category and brand, allowing him to "realize" his goal by benefiting all stakeholders.
2, The impact and influence of the macro environment on the company and its strategies.
2.1, STEEP analysis.
Social
Vietnam is a populous country with a fast-growing population. Our country has an estimated population of 86 million
people, placing it third in Southeast Asia (after Indonesia and the Philippines) and 13th in the world. Vietnam's population is
rapidly increasing. Vietnam's population grew by 952 thousand people in 2009, or 1.2 percent per year.
Cultural traditions, customs
Unilever has learned that Vietnamese people are opportunistic when it comes to their culture. Unilever has noticed
that Vietnamese people are receptive to new ideas and have imaginative perspectives, with a welcoming attitude toward new
things as long as they are compatible with their way of life. their perspective They adore experimenting with new items, and
the higher the quality, the better. Even if they are unfamiliar with a certain product, advertising the company's offerings is
not a difficult task. Because Vietnamese people are naturally curious, the company's promotion and advertising activities
need only stimulate their curiosity; the goods will follow.Furthermore, Unilever recognizes that Vietnamese people have a
wide range of preferences, which is ideal for Unilever's different product categories.
New trend
Vietnamese youth are also chastised by society because of their proclivity to play and enjoy themselves, which has
prompted resentment among the old and strict... Some argue that transnational corporations are to blame. The country has
promoted and reintroduced a Western lifestyle that is foreign to Asians, particularly in a country like Vietnam, which has a
more or less feudal mindset. As a result, the target client group for many of Unilever Vietnam's products is the X generation
(those between the ages of 18 and 29), who are now slightly more autonomous, liberal, and confident than the preceding
generation. They will be the ones to make the majority of life decisions, including purchasing consumer goods.
Therefore, for unilever, the social factor is an advantage when planning a
research strategy and launching new products, besides the psychology of buying foreign products because the design and
brand create conditions for businesses to penetrate deeply. In the Vietnamese market, Unilever also firmly grasps these
opportunities for steady development step by step. On the other hand, the challenge that Unilever faces is that the company
always has to keep up with youth trends and keep up with the people by always updating popular social networking
channels when the Vietnamese community always has trends. new. Second, society criticizes Vietnamese youth for their
gluttony and pleasure, causing discontent among the elderly and rigid... Some claim that multinational firms are to blame
for pushing and reintroducing a Western way of life that is alien to Asians, particularly in nations like Vietnam that are
more or less feudal and religious. Third, Vietnam's projected population program will result in an aging youthful population
in the next decades, and Unilever will no longer benefit from the aging demographic structure.
Technology
Today, with the strong movement of the global economy in the era of the Fourth Industrial Revolution, Vietnam has
entered a period of comprehensive renovation, actively participating in the increasingly international integration process.
extensive. The XIII Congress advocated "promoting national digital transformation, developing a digital economy based on
science - technology and innovation" (13), in which human or intellectual resources are the foundation. At the core,
enterprises must be centers of research, development, application and technology transfer and application of digital
technology (Phung Manh Cuong, 2021). To meet that, Unilever has recently upgraded a new production line with higher
technology to meet the demand for low cost packaging production to meet demand.
In addition, due to the impact of COVID-19, and research by the E-commerce Association showed in 2019 that the
growth of e-commerce platforms increased significantly in 4 years from 2017-2020. This is a potential market for Unilever
to develop and go deeper and this market with the help of the image design team with programs such as photoshop, Acrobat
is enough to respond well to the customer's trend. . Online sales opportunities help Unilever expand its market and reach
more customers. The company can promote products with promotional programs, reach the community more easily and this
ensures a level of trust when it is possible to buy genuine products from online stores.
Economy
Economic growth rate
According to the General Statistics Office, the complicated development of the COVID-19 epidemic since the end of
April 2021 has seriously affected trade and service activities. The negative growth of some service industries accounted for a
large proportion, reducing the overall growth rate of the service sector and the whole economy. Meanwhile, industrial
production in the fourth quarter of 2021 prospered right after localities across the country implemented the Government's
Resolution No. 128/NQ-CP dated October 11, 2021 on safe and flexible adaptation. effectively control the COVID-19
epidemic with a value-added growth rate of 6.52% over the same period last year. For the whole year of 2021, the added
value of the industry increased by 4.82% compared to 2020
Per capita income
From 2002 to 2020, GDP per capita increased 2.7 times, reaching nearly 2,800 USD. Also during this period, the
poverty rate (according to the standard of 1.9 USD/day) dropped sharply from more than 32% in 2011 to less than 2%.
Thanks to a solid foundation, Vietnam's economy has shown remarkable resilience in times of crisis, most recently the
COVID-19 pandemic. In 2020, Vietnam is one of the few countries to record positive GDP growth during the outbreak of
the pandemic.(Wolrd bank, 2021)
In summary, although Vietnam's economic growth rate is high, it is uneven and easily fluctuated by external factors
leading to increased production costs and reduced consumption of Unilever's products in some markets. school. In addition,
the ability to deliver goods in the middle of the epidemic season is limited, which greatly hinders Unilever's revenue and
profit exploitation. But in return, GDP per capita in Vietnam still remains at a high level and shows signs of positive growth,
so the maintenance of production and business activities remains uninterrupted and still shows signs of higher development.
Environment
Geographical location
With a lengthy coastline and numerous large seaports, Vietnam is at a relatively advantageous location in the region
for the company's goods to be imported.Vietnam's climate is a tropical monsoon country, creating favorable conditions for
seasonal product sales, which is an opportunity for many diverse product lines to penetrate the market.
Terrain, roads and traffic
There are many inconveniences that are not only Unilever's own difficulties but also common difficulties of all
businesses operating in Vietnam in expanding the market to remote mountainous and mountainous provinces.
Opportunity: If Unilever decides to focus on exporting in the near future, Vietnam will be in a relatively favorable
location in the region, with a long coastline and numerous significant sea ports. The northern seasons are well defined,
making seasonal products easier to sell and allowing a wide range of product lines to reach the market.
Challenge: Some of the parent firm's products are not fit for the hot and humid tropical climate in Europe, so the
company must adjust the components and the old products to their properties.
Second, because transportation infrastructure is lacking, particularly in rural areas, it is difficult for firms to expand
their markets to mountainous and isolated provinces. a faraway location
Political
Politically, Vietnam is a country with a high degree of political stability; People know well about foreign direct
investment and attach importance to these businesses, so it is reasonable to build and build a long-term business strategy in
Vietnam. Vietnamese ministries and branches are working together to develop the country's economy in the direction of
industrialization and modernization, focusing on attracting foreign investment, especially from transnational and
multinational corporations such as Unilever to increase the budget. Faced with terrorism, war, epidemics and other threats,
Vietnam's policies are considered stable and Vietnam is named as one of the safest places in Southeast Asia.
Regarding the law, the company found that investing in Vietnam is encouraged by officials, although Vietnamese law
still has many obstacles and shortcomings, creating many confusions for the company. When a company hires local staff to
perform tasks, the company will have a better understanding of the investment law as well as the business environment in
Vietnam in general. Therefore, while developing corporate strategy, political and legal difficulties are not significant
problems or obstacles. The only legal issue that the company must address and exercise caution while planning are labor and
staffing constraints, so Unilever must comply with the state's mandatory law when making contracts. such as working age
and ensuring occupational safety for employees as well as meeting the allowable industrial waste index when operating
industrial parks. Moreover, the business law continues to have There are many disadvantages for foreign investors,
especially in terms of tax policy and the tax rates applied to "luxury products" such as Unilever's lotion, shower gel and other
similar products are quite high. Therefore, balancing input costs, taxes and profits is a difficult problem for businesses
The second influence comes from the economic factor, Although Unilever's products are to meet people's daily needs in
terms of home hygiene and health care, the economic factor is affecting consumption habits. used by Vietnamese people,
this is evident in the recent wave of covid in Vietnam. The pandemic has made the economy unstable and the prices of
products increased. Customers have more habits of hoarding and spending less. Although Unilever has penetrated deeper
into the online commerce market, it has not been able to completely solve this problem.
Competitive Rivalry is the biggest concern confronting Unilever today and in the future, according to the report, hence
lowering competitive pressure is the most important and first issue that Unilever must address. Furthermore, supplier
bargaining power and entry barriers have little impact on Unilever.
To get a competitive edge, Unilever use differentiation as a general strategy. This business approach focuses on
emphasizing the traits or characteristics that distinguish the company's products from those of competitors. Unilear, for
example, produces personal care products like the Doce Cream Bar in response to consumer desire for a mild, non-drying
soap.
4, Internal resources and capabilities of the company
4.1, Value chain
*Support activities
Firm infrastructure Human resource management Technological development Procurement
Inbound As a multinational Unilever's human Unilever always researches Build good relationships with suppliers
logistic
corporation, Unilever is resources mostly come and innovates to find new Optimizing cargo space when
heavily invested in finance from domestic workers materials, as well as transporting materials from abroad.
and technology when with many different invests in self-made Utilize raw materials from domestic
operating in Vietnam. positions with different machinery in the agriculture to reduce costs
Unilever Vietnam has requirements. A university packaging factory,
become one of the most degree or higher is increasing production
successful foreign required for the office speed as well as reducing
investors in the sector and no degree is transportation costs.
Vietnamese market, with required for machine Website application, app
an annual growth rate operators and technicians. for better inventory
higher than the market The company has many management, avoid
over the past 22 years and recruitment rounds a year, inventory, long storage.
many certifications such as so the labor force is Follow Unilever's vision to
ISO 9001 2000 always abundant and is create a clean
international quality committed to training in environment, reduce waste
management system and the necessary and
ISO 14001 environmental methodical skills when
management working.
Operation
Outbound system.Unilever has Unilever's working The production process is strictly
logistic
implemented many social environment is extremely The packaging used is monitored to avoid as few product
and community programs professional, open and environmentally friendly. defects as possible
such as: "P/SProtect friendly. The employees Gradually replace manual Increasing production plants in many
labor with 4.0 technology
Vietnam's Smile", "Wash in the company are always industrial zones in Vietnam
your hands with soap for a encouraged and facilitated Build a full purchasing process from
healthy Vietnam", "OMO to promote their capacity. payment confirmation to shipping
for children's Enterprises always have Effective inventory management
playgrounds". incentives from material Make sure that the goods are carefully
children","VIM Clean to spiritual to promote the packed, to avoid collisions and broken
toilets "... These programs working spirit and products during transportation
have truly become prime dedication of everyone to
examples of effective the highest level.
public-private partnerships Periodically, the company
that have made a organizes training courses
significant contribution to to strengthen working
improving lives.for the skills
people of Vietnam. This Reduces turn over
reinforces its commitment rate
to its mission and vision,
across various
Marketing management areas from Marketing Staff get more Create various promotions,
& Sales Join many different e-commerce
input and output. training in digital giveaways on e-commerce
platforms, increase choices for
Marketing strategies marketing products and company
with social responsibility customers when shopping
Leaders point out product website.
help increase Unilever's Coordinate with the e-commerce floor
brand awareness and foresight in the era of There is always a
influence the behavior and to offer promotions and discount codes
consciousness of community digital transformation consultant, customer
on the sale day of the trading floor
Services members, helping to create a The customer service support 24/7 via chat box,
better community. Always research and grasp the needs of
department is responsible hotline.
customers
for consulting to satisfy This creates brand value
Pay more attention to community
customer requirements and increases customer
programs and volunteer campaigns to
The RD department satisfaction
strengthen Unilever's brand position
collects customer
and popularity
information, feedback and
reviews about the product
and the company
* Primary activities
Inbound Logistics: Unilever's self-sufficiency is strong. And the diversity of supply as well as the loyalty from
suppliers due to the fast and flat payment policy
Operation: Building the largest factory in the region: the factory in Cu Chi is the largest in Asia.
Applying the most advanced technology to production to increase production efficiency, producing a variety of products
that are diverse and famous in the market.
Outbound Logistics: Applying ERP to manufacturing and distribution operations reduces inventory costs.
Agents, distribution routes, and customers in large numbers.
Marketing and sales: Using a vast distribution infrastructure that reaches across the entire country. To reach the bulk of
consumers, use advertising media. Strongly invested R&D activities make advertising efficiency high, thereby increasing
value. Regularly organize promotions that impact loyal customers and potential customers.
Service: Customer support center via email, hotline.
Through Value chain analysis, Unilever's core activity here is operation. In order to support this activity to run in the
best way, the company has invested in human resources, trained the right skills, as well as advanced technology. These
activities are aimed at bringing good quality products, optimizing raw material costs as well as not wasting resources on
storage. The brand position is also consolidated in the market.
4.2, VRIO framework
Financial resource
Participating in the Vietnamese market at a very early age, Unilever has built up huge financial resources and is
difficult to imitate. Unilever Vietnam has strong financial resources from Unilever globally, and at the same time, it is
difficult to imitate. Unilever Vietnam's financial resources are also in stable condition. This is the strength of the company in
competing with other businesses. It allows Unilever to regroup and relieve pressure from competitive forces. These resources
are mainly used to invest in marketing, R&D, people, product research as well as market expansion.
Brand position
Unulever's brand awareness is high. This status comes from the perfection on each product and the positive brand
value in consumer reviews. Besides, Unilever's brand position is the result of long-term brand investment and is hard to
replace by other companies in the industry.
Marketing communications
Unilever uses marketing communication strategies to generate higher market consumption of its products. Toorchuwcs'
unique culture and corporate vision surround the strategic focus of marketing. So it's possible to duplicate this, but it won't be
precisely the same as Unilever.
Distribution channel
Unilever's key strengths and resources include controlling and growing distribution channels. The company's
distribution system and supply chain are made up of a number of different distribution channels that are all owned and
managed by the company and based on agents and agencies. By merging distribution channels, Unilever can reach and enter
a wider range of markets, resulting in increased product sales and consumption. Because of good contacts with suppliers and
distributors, the company's carefully structured and meticulously developed distribution network has proven to be an
unequaled resource as it has grown through time.
Investment in research and development
Unilever invests heavily on research and development. The research and development department at Unilever keeps
the corporation informed about market trends and consumer behavior. Because of its understanding of changing consumer
tastes and preferences, the Unilever Company can use its research and development function to provide services that adapt to
changing requirements and tastes. The Coca-Cola Company's clear and focused R&D expenditure is a resource that helps it
to maintain a competitive focus while utilizing other resources efficiently.
Adaptability
Unilever is a multinational corporation with a global presence. As a result, the company is likely to be exposed to a
diverse range of cultures, social customs, and beliefs from around the world. Through its involvement in localization and
marketing communications activities, among other things, the corporation has demonstrated a high degree of adaptability to
diverse cultures as a worldwide enterprise and behemoth. The company's performance in many local markets depends on this
localisation. On the other hand, localization is typically guided by a stated global strategy to help various management roles
operate at their best. Unilever's ability to adapt to different regional cultures and external environments is a vital asset that
has helped the company improve penetration, accessibility, brand memory, and visibility.
* S-W analysis
Strength Weakness
The advantage of brand position is solid High industry competition
due to long-term participation in the market as Switching costs are low so customers can leave at
well as high product reputation in the market. any time.
Unilever is a company that has obtained The climate is hot and humid, so the products
international certificates ISO 9001 2000 about produced by the formula and materials from the
international quality management system, ISO parent company are not suitable for a part of the
14001 environmental management system Vietnamese people.
Having a large capital invested and having
more advantages in scientific research and
advanced technology from the parent company
The network of retailers and wholesalers is
nationwide
Functional research divisions make management recommendations. Orders are sent from top to bottom according to
regulations once they have been accepted by the director. The functional departments are in charge of providing advice to the
entire system. Each department has its own set of responsibilities and authorities, as well as its own set of professional
activities. These divisions, on the other hand, have a reciprocal relationship, resulting in increased output and business
efficiency for the corporation. Administrative organization, personnel management, and administrative work are among the
functional departments. The accounting-financial department is in charge of managing the company's entire capital and
assets, organizing and inspecting the implementation of economic and financial policies, and compiling timely and accurate
statistics on the state of assets and capital sources to assist Directors in regularly reviewing the company's entire business
activities. Next is the sales department, which collects information, documents, and researches through business activities,
thereby making business plans and managing the company's distribution channels; The service department is in charge of
providing items to clients, receiving information, and dealing with any complaints or problems they may have. And then
there's the factory, which is in charge of producing, managing, and maintaining product quality in order to satisfy client
demands. The aforementioned operating mechanism not only supports the freedom and creativity of specialized departments
and functional departments, but it also assures unity and concentration for the overall organizational system, allowing the
company to run more efficiently.
4.4, Stakeholder mapping.
The types of stakeholder in Unilever Viet Nam:
Internal: employees, managers, Share holders.
External: Government, Supplier, Customer, Nongovernmental organizations (NGOs) and Trade associations.
Customers and government officials are the most powerful stakeholders, but they are uninterested in business-related
information. Customers are a company's primary source of revenue, therefore it's critical to think about supporting existing
consumer groups and attracting new customers in expanding areas by meeting their desires and needs. In addition, when
Unilever works in Vietnam, the government establishes requirements and policies. As a result, satisfying the government is
critical to Unilever's long-term success.
The second step is for shareholders to take the following step. They are the ones in charge of the company's operations.
The people who own the corporation are called shareholders. They have the most power and have the capacity to decide
whether or not key initiatives are implemented by determining whether or not to invest money. They care about staying up to
date with information and business developments quickly and accurately since the shares they own help them receive a
substantial percentage of the profits from the risk. Managers wield significant power in the organization since they are
directly involved in the company's strategies and are the ones who deal with unexpected situations.
The next group is the collective of employees and suppliers, who, despite their lack of influence within the company,
are the ones who are most concerned about the company's predicament. Employees care about their accomplishments,
incentives, benefits, and especially possibilities for advancement at work when they are at work. Suppliers, on the other
hand, are drawn to the company's goals, and growth in cooperation allows the two parties to grow together.
Finally, non-governmental organizations (NGOs) and trade associations are low-power, low-interest stakeholders.
Their community is more concerned with what Unilever does for them than with the product. NGOs are concerned about
whether Unilever can do anything to help the environment, such as contributing to the environmental protection fund, rather
than the company's products.
The nature of the stakeholder management framework is complimented by clearly defined levels of influence and
factors of interest. Conflicts can be avoided by balancing and handling things one at a time. Stakeholders are external and
internal elements that have a direct impact on the enterprise's management and operations. This effect can be as simple as the
government exerting control over the organization and requiring the organization to comply. It is evident that Unilever must
adhere to Vietnam's labor and child protection rules, which prohibit the employment of workers under the age of 18.
Unilever's workers must be at least 18 years old to ensure this. This strict regulation is put in place to ensure the full
implementation of this organization's responsibilities to society and stakeholders.
5, Strategic planning for company.
5.1 Strategic planning
* Corperate strategy ( Goals and objectives):
First and foremost, Unilever wishes to increase income and develop the Vietnamese market in a sustainable manner.
To accomplish so, they must follow the company's vision and objective, which is to ensure that output meets green and clean
standards. Furthermore, the company must compete with the large players in the Vietnamese market, whether they are
foreign organizations or Vietnamese businesses. Unilever must achieve its short-term goals in order to reach its long-term
goal of serving its consumers' daily demands. The priority order of the business strategies is: raise revenue> grow market
share> sustainable development, according to the business strategies listed.
5.2, Strategic direction
Ansoff’s product- market Martrix will be used to demonstrate strategic direction of Unilever Viet Nam
Market penetration
Market penetration is a strategy adopted by Unilever and continuously adjusted over the years that have contributed to
the company's success today. The company's products have been penetrated, introduced to customers for a long time, and
then spread across geographical locations in Vietnam. The company understands the importance of economies of scale in an
organization so that success can be easily achieved. The huge initial marketing costs for toothbrushes and toothpaste P/s
created difficulties for Unilever when it first entered the market. This tactic aims to increase sales for Unilever
Product development
Product development is closely tied to an organization's invention and innovation, and a focus on product development
shows that a company is constantly developing or introducing new items to consumers. Must know the frequency and time
of new products of Unilever. To see the development of the brand, and at the same time orient the development of the
business. The peculiarity in the production of consumer goods is that the design and packaging are always innovated to
attract consumers. Therefore, sellers must always update products that change frequently, have diverse models, and attract
buyers' tastes. Timely release inventory of discarded products, change packaging. Unilever recently launched a new brand
“Love Beauty and Planet” to meet market demand and transition into higher growth areas. In the case of Love Beauty and
Planet, Unilever wants to attract young avid millennials (ages 18-35) and conquer the natural product segment.
Market development
Market development is the strategy by which a corporation expands its company and activities by entering new
geographical markets. The company is adapting to new demand patterns and planning for long-term changes in customer
behavior as it emerges after the crisis. Unilever is also seeing significant changes in consumer shopping habits, especially
between local stores and e-commerce, the two most popular channels: Neighborhood stores have become shopping place to
go. In the first quarter, e-commerce revenue grew 36% companywide. This shift in shopping behavior is a long-term trend
and it is the most important factor to consider when using digital media to engage shoppers in Vietnam.
Diversification
The Company has been adjusting its diversification approach by including both related and unconnected diversification
strategies. Acquisitions and ownership of different subsidiaries are frequently done in order to keep the company from
diversifying. Tatcha LLC, Dermalogica, and Seventh Generation are some of the company's unconnected diversification
operations because they are mostly associated with the cosmetics and beauty business. The continuing expansion of the
company's product line is made from the standpoint of relevant diversification.. Various business units developed over the
decades to achieve related diversification such as cleaning, skin care, health care brands (Nazarova, 2015).
5.3. Business Strategy.
Unilever's overarching business strategy (based on Michael Porter's model) builds competitive advantage by satisfying
specific consumer needs and preferences. Unilever uses differentiation as a general strategy to create competitive
advantage. The main focus of this business strategy is to emphasize the features or characteristics that make the company's
products stand out from the competitors. For example, Unilever publishes personal care products such as Dose Cream Bar to
meet consumer needs so that the soap is not too harsh or dry. Despite the relatively high selling price, products such as the
Unilever remains competitive because they stand out from most soaps that focus more on cleaning than moisturizing.
In this strategy, the company attracts customers with specially designed products. As such, a shared strategy such as
this aligns with Unilever's vision statement and mission statement, which aims to support global sustainability and increase
consumer comfort in life.
The strategic goal based on the group's distinct common competitive strategy is to develop Unilear through product
development. This goal focuses on developing products that stand out from the competition and attract customers. On the
other hand, the financial objective related to the overall strategy is to increase Unileᴠer's sales in developing countries, which
offer high growth opportunities.
Conclusion
This report presents Unilever Vietnam's business strategy in the health and personal care industry. Through analysis of
the internal and external environment, besides applying accompanying analytical models that show detailed information
about Unilever
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