SWOT Analysis of Unilever (2024)

Unilever is a British multinational company founded on 2nd September 1929 by Lever Brothers and Margarine Unie. It includes products like condiments, ice cream, food, vitamins, coffee, tea, personal care, etc. Moreover, the company is the largest soap producing company globally. Being the owner of 400 brands, its products are available in approximately 190 countries. The company has three primary divisions: Home Care, Beauty and Personal Care and Foods and Refreshments. SWOT analysis is the technique for evaluating the company’s strengths, weaknesses, opportunities, and threats. This Swot analysis holds great significance in the market as it helps the company evaluate its weaknesses and work on them to get success. Evaluation of threats is necessary for any company to compete in the competition.

SWOT Analysis of Unilever

Strengths of Unilever

Unilever is a multinational brand with a lot of strengths.

• It has a significant global presence within 190 countries, making it an attractive international brand. Moreover, it has its distribution channels worldwide.
• The company’s name has always been on the top in recent years.
• It has a diverse range of products, from food to personal care and even beauty products. Everything is available with Unilever making it a one-stop brand.
• The research team of Unilever always brings up innovative new products based on their customer’s demands and requirements.
• Due to the high product portfolio, the pricing range of Unilever is flexible.
• Instead of being just a part of the market and its competition, Unilever leads the market in consumer products.
• Unilever is also the favourite local brand as it mixes the culture of the local people with its products to satisfy their requirements.
• They have a great workforce from all over the globe with different cultures and great ideas. This helps them better to understand the needs of people from other regions.
• Advertising and marketing are the need of the hour for running a successful business. Unilever knows the value of marketing and always finds unique ways of advertising its products.

Weaknesses of Unilever

• There is enormous competition in the market, and many other global competitors continuously challenge the dominance of Unilever. This leads to constant price wars and lesser margins.
• The products of Unilever are imitable; they can be easily substituted with other products. The problem of imitation is more common in countries like Africa and India, where people try to use natural substitutes for Unilever’s products.

Opportunities of Unilever

• With the increase in globalisation, the rising demand for living standards and the western lifestyle can be an opportunity for Unilever to meet its needs.
• The rise in health-conscious consumers in developing countries can also be an excellent opportunity for Unilever.
• The millennial generation is one of the top customers of Unilever.
• The excellent background of Unilever gains the customer’s trust in their old and new products.

Threats of Unilever

Unilever is a multinational company that still needs strong branding and marketing with good products to stand still in its place in the competition. Some of thethreats of Unileverare as follows:

• Unilever’s massive part of business depends upon retailers. However, now the retailers are trying to create their brands. Therefore, it can be a significant threat to Unilever’s business.
• Rising competition in the market poses a threat to Unilever’s business.
• As already discussed above, product imitation can be a serious threat to the business of Unilever as it invests a large amount of money and workforce to create a new product. But when someone decides to imitate the product, the value of the new product eventually decreases.
• Many people are returning to natural and Ayurveda products in recent years instead of using these commercial products. People believe that natural and Ayurveda products can take a long time but do not cause any side effects and are best for the long run. The rise in natural and Ayurveda products can also be one of the severe threats to the business of Unilever and other commercial companies.

Conclusion

SWOT analysis of Unilever or any company evaluates the strengths, weaknesses, opportunities and threats to the company. Unilever is a multinational brand with approximately 400 different brands spread in over 190 countries. SWOT analysis is essential as it helps evaluate any weakness or threats to a company. Having a global presence, excellent marketing skills, a fantastic workforce, and the trust of its customers are the strengths of Unilever. High competition, people returning to Ayurveda and natural products and greater chances of imitation of products are some of the weaknesses and threats of Unilever.