Closing Case Emerging Markets. Antitrust Wars.

Sample Solution

 

The competitive environment confronting Unilever changed significantly during the 1990s. Some of the key changes included:

• The rise of global brands. Global brands, such as Procter & Gamble and Colgate-Palmolive, began to expand their reach into new markets, including developing countries. This increased competition for Unilever, especially in the home care and personal care markets.
• The growth of private labels. Private labels, which are store brands produced by retailers, began to gain market share in the consumer goods market. This was due to a number of factors, including the increasing price-sensitivity of consumers and the willingness of retailers to invest in their private label brands.
• The emergence of new technologies. New technologies, such as the internet and e-commerce, began to change the way that consumers shopped for consumer goods. This led to new challenges and opportunities for Unilever.

Full Answer Section

    What changes did Unilever make in its strategy and structure to compete effectively in the new environment? Unilever made a number of changes to its strategy and structure in the 1990s to compete effectively in the new environment. These changes included:

• Focusing on core brands. Unilever reduced the number of brands that it sold from over 2,000 to around 400. This allowed the company to focus its resources on its most profitable brands and to build stronger brand equity.
• Expanding into new markets. Unilever expanded its presence in developing markets, such as India and China. This was a key growth driver for the company in the 1990s.
• Investing in research and development. Unilever invested heavily in research and development to create new products and improve existing products. This helped the company to stay ahead of the competition and to meet the changing needs of consumers.
• Adopting a more globalized structure. Unilever adopted a more globalized structure in the 1990s. This involved centralizing decision-making and streamlining operations. This helped the company to improve efficiency and to reduce costs.

Does the new corporate identity of HLL fit the new strategy and environment? In 2007, Unilever rebranded its Indian subsidiary, Hindustan Lever Limited (HLL), as HindUstru Limited. The new corporate identity is designed to reflect Unilever's new global strategy and environment. The new name is shorter and easier to pronounce, and it is designed to appeal to a global audience. The new logo is also more modern and streamlined. The new corporate identity of HLL is a good fit for the company's new strategy and environment. The new name and logo are more global in appeal, and they reflect the company's commitment to innovation and modernity. Is Unilever pursuing a global standardization strategy or a localization strategy? Unilever is pursuing a hybrid strategy that combines elements of global standardization and localization. The company has a number of global brands, such as Dove and Omo, which are sold in markets all over the world. However, Unilever also tailors its products and marketing to local markets. For example, Unilever's Lipton tea brand is different in India than it is in the United States. Unilever's hybrid strategy allows the company to take advantage of the benefits of global standardization, such as economies of scale and brand recognition. However, it also allows the company to adapt its products and marketing to local markets, which is important for success in a globalized world. Conclusion The competitive environment confronting Unilever changed significantly in the 1990s. Unilever responded to these changes by focusing on core brands, expanding into new markets, investing in research and development, and adopting a more globalized structure. The company's new corporate identity fits its new strategy and environment. Unilever is pursuing a hybrid strategy that combines elements of global standardization and localization.