Value Chain Analysis: A Strategic Analysis Of Unilever

Value chain analyses a firm 's internal activities such as planning, production, and development, packaging and distribution so as to create value for clients. The function of the value chain is to identify the sources for cost reduction along with quality improvement. It means value chain is used to identify the strong and weak points, positive and negative points, the scope of improvement; in a nutshell, the advantages and disadvantages of the activities taking place in the system. The value chain is also called as a strategic analysis tool and it is a well-known concept in business management industry.

Michael Porter coined the definition for value chain analysis also called as value chain in the year 1984. He believes that the effectiveness

Outbound logistics: They are made up of centralized logistic centers to promote efficiency, global network, reduced emission of CO2 by 22% to ensure ecological sustainability and lastly to improve customer service.

4. Marketing and Sales: Annually, Unilever spends around 7 billion euros in marketing and sales. The reason to do so is to promote customer loyalty and relationships, brand equality and creates competitiveness of brand.

5. Service: Unilever works quite closely with the customer to ensure customer satisfaction and also to understand the trending needs of the customer.

Supportive activities:

1. Infrastructure: Unilever board is responsible for the promotion of values, the CEO’s handle implementation, Legal officer deals with breaches and legal issues and senior management handles day-to-day operations.

2. Human resource management: In the year 2009, Unilever started a program to train people with right skills called as ‘talent and organization readiness’ program. In 2010, to align personal development plans and Senior leadership skills, It launched a Unilever Leadership Development program.

3. Technology development: Unilever spends around 1 billion euros on Research and Development.

4. Procurement: Unilever has 160,000 suppliers, 273 factories, 500 factory sites around 190

OPPORTUNITIES FOR UNILEVER:

In demographics, they can promote their products to a wide range of population and can use product loyalty that is there from generations. They can use automated manufacturing mechanism. They can make use of the current economic crisis where small companies have to liquidate their business as they go into a loss, to increase their sales. As consumers are aware of healthy products, Unilever can boost their sales by launching the product in this sector.

CONCLUSION

Unilever is a multinational company which ranks third globally in fast moving consumer goods. They have an excellent value chain which is one of the factors that has resulted in them to be among top consumer goods company globally. Their merger and acquisitions have led them to expand their company in different sectors of the consumer goods. They have 400 brands and sell their products across 190 countries. They have to work on some areas of the value chain to work even better than how they are working now. Also, there are many opportunities that will help Unilever to overcome their shortcomings and make them a successful Consumer goods