The Nest Analysis Of E-Business Analysis: Unilever

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Technological Factor Analysis Unilever has invested and is still investing heavily in IT to help to better its business activities more importantly in the areas of e-business for improvement in product quality and brand image. “E-commerce grew by more than 40% in 2015 thanks to a focus on brilliant execution online where 80% of sales are made from the first page view”. (Unilever Annual Report, 2015) Unilever is aware that lack of funding for development of new products, lack of technical expertise in R&D coupled with the rapid release of the products will have a negative effect on the company’s profit and profit margins, turnover, cash flow and overall reputation. Therefore, Unilever has automated most processes which have proved to be a major…show more content…
This impact strongly on Unilever. Additionally, these competitors are usually aggressive contributing more to the force of the competition. Due to the low cost of switching, Unilever is also faced with stiff competition. For instance, customers can easily switch from one company to the other. Hence, the level of competitiveness shown in this segment of the five forces as it relates to Unilever is very high which implies the company must take the issue of competitive rivalry very seriously as an increase in competition means less profit and vice versa. Some major Unilever rivals include Nestle, Procter, and Gamble…show more content…
In the highly competitive consumer goods industry, Unilever has successfully reduced the threats from these five forces through implementing appropriate hybrid strategies. Carrying out diversification strategy, Unilever has achieved market penetration by having its products in virtually every sector of consumer goods and healthy living. With differentiation strategy, it is less susceptible for Unilever to suffer sales loss as a result of any price surge or slump for differentiation builds up customer
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