PESTLE Analysis of Unilever
Unilever is a leading British consumer goods company with a strong presence in 190 countries. There is no doubt about it that it is one of the largest consumer goods corporations in the world. Many brands are under Unilever, such as Dove, Sunsilk, Magnum, etc. Being a multinational organization, it has strong connections with other companies and service providers that run its operations and distribution network. They must follow the rules of the country in which it operates to minimize the risk of lawsuits. They should develop new products to attract new customers. In short, they need to work on a winning business strategy. This PESTLE analysis of Unilever will help the company to set its position in the competitive market. PESTLE stands for political, economic, social, technological, legal, and environmental factors.
Political Factors | PESTLE Analysis of Unilever
American and EU Laws:
Factors like American and European Union laws have the greatest impact on the business performance and working of the company. They have to abide by their trading rules and regulations for seamlessly running a business. If they don’t follow these guidelines, the company can face legal issues. They could face fines and bans. Moreover, the company is highly exposed to regional or local laws as well. They are responsible for the distribution of the company’s products. On the other hand, factors like trade, imports, and exports laws could also hinder the performance of the company.
Economic Factors | PESTLE Analysis of Unilever
Competition:
The overall situation of the economy of the country predicts the buying power of customers. If the economy is not good, then people don’t buy expensive products. Such scenarios decide the future of the company in the country. Nowadays, customers love buying cheaper but quality-based products. There are so many companies that provide such products at lower costs. So, the competition is very stiff in some markets like the EU, America, and Asia.
Moreover, the company’s overall manufacturing power and distribution directly impact the products. It can create a harmful impact on the profitability of the company. If the company suffers in any market, the other one will grow. In short, Unilever is at the risk of consumer crazes and inflation rates.
Social Factors | PESTLE Analysis of Unilever
Focus on Brand Image:
Like so many FMCG brands, the company has built a strategy to emphasize developing a powerful image. They pay huge attention to environmental and social factors because they directly impact people. That’s why most of its products are for well-being and personal care. They desire to assist people in looking and feeling well. Moreover, they want to change the lifestyle of people with products. Dove, Sunsilk, and many other products are the proof of this thing. For proof, you can see its tagline.
Technological Factors | PESTLE Analysis of Unilever
Automation is Key:
Since its inception, the company has been producing innovative and high quality products. They also use various online platforms for selling these products. Moreover, the company has built a strong digital marketing strategy and selling method. They believe that automation is the only way to get success. They use innovative ways to produce products. The Unilever company distributes products across the globe quickly. If something bad happens in this segment, they may face poor profit margins and negative cash flow. This wouldn’t be good for its brand image and profitability.
Legal Factors | PESTLE Analysis of Unilever
Never-Ending:
Unilever has more than 400 brands under its portfolio. The brands range from health, personal care, well-being, food, etc. The company is highly exposed to various legalities and laws. The company must follow copyright and intellectual property rights. They should keep taxes, interest rates, employee safety, and health laws in mind, both regional and international.
Environmental Factors | PESTLE Analysis of Unilever
Heavy Emphasis on Sustainability:
The company is investing in renewable energy sources and sustainability programs. Indeed. they manufacture products that are safe for customers. They are using eco-friendly materials and packaging in some of their products. So, the brand’s overall perception is quite friendly to the environment.
Conclusion:
Unilever is a leading name in the consumer goods sector with an amazing product portfolio and a strong global presence. The company’s overall image is highly positive in the eyes of customers. They are helping customers live better lives. But, customers need high quality products at lower prices, and Unilever’s competitors are taking advantage of this thing. Moreover, the company is heavily investing in sustainability which is a better sign of its progress.
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