Hul - Strategic Analysis
Strategic analysis
Report on
Hindustan Unilever
HINDUSTAN UNILEVER
About the Company: * One of India’s largest FMCG companies. * The company has more than 75 years experience of the Indian market * It has 17 brands in the list of 100 most trusted brands in India. * It has more than 15,000 employees * More than 2,000 suppliers & associates * The company has 70 Manufacturing locations across India * It has more than 2700 Distributors across the city * The company directly covers more than 2mn outlets in the country.
Corporate level strategy: * One of HUL’s corporate level strategies was to shift the decision-making power from the subsidiary to its headquarters. * This strategy would not prove good. The reasons are as follows: * In this case, Unilever formulates new global realignment under which it will develop brands and streamline product offerings across the world. * Unilever major revenues comes (nearly 50%) from its food business which is not the case with HUL, where nearly 80% of sales and 85% of net profit comes from the home and personal care business. * Adoption of Unilever 's global strategy of focusing on 30 power brands will make HUL 's strong position in the niche soap and detergent market will suffer. * HUL generates 4% of its revenue from food business which can be a target industry as an opportunity in terms of domestic and export markets, but this opportunity may not capitalize as HULs own strategy of offering low price is been suffered at the cost of Unilever 's premium priced. * In India rural marketing is very necessary and if Unilever will not concentrate on here then domestic player will take an advantage this is because Unilever sells high end product through modern retail outlet on other hand HUL is known for its capabilities in rural marketing, effective distribution systems and human resource development.
Other reasons supporting the shift in decision making
Report on
Hindustan Unilever
HINDUSTAN UNILEVER
About the Company: * One of India’s largest FMCG companies. * The company has more than 75 years experience of the Indian market * It has 17 brands in the list of 100 most trusted brands in India. * It has more than 15,000 employees * More than 2,000 suppliers & associates * The company has 70 Manufacturing locations across India * It has more than 2700 Distributors across the city * The company directly covers more than 2mn outlets in the country.
Corporate level strategy: * One of HUL’s corporate level strategies was to shift the decision-making power from the subsidiary to its headquarters. * This strategy would not prove good. The reasons are as follows: * In this case, Unilever formulates new global realignment under which it will develop brands and streamline product offerings across the world. * Unilever major revenues comes (nearly 50%) from its food business which is not the case with HUL, where nearly 80% of sales and 85% of net profit comes from the home and personal care business. * Adoption of Unilever 's global strategy of focusing on 30 power brands will make HUL 's strong position in the niche soap and detergent market will suffer. * HUL generates 4% of its revenue from food business which can be a target industry as an opportunity in terms of domestic and export markets, but this opportunity may not capitalize as HULs own strategy of offering low price is been suffered at the cost of Unilever 's premium priced. * In India rural marketing is very necessary and if Unilever will not concentrate on here then domestic player will take an advantage this is because Unilever sells high end product through modern retail outlet on other hand HUL is known for its capabilities in rural marketing, effective distribution systems and human resource development.
Other reasons supporting the shift in decision making
References: * http://www.hul.co.in/Images/IntroductiontoHUL_tcm114-284399.pdf * http://www.livemint.com/Money/mII6XF4aW6KzValJQxksZI/HUL8217s-strategy-shows-initial-success.html