Unilever faces medium competitive rivalry in the food and refreshment industry but high rivalry in the home care industry. It has low threat of substitute products and supplier power but high buyer power in both industries. There is low threat of new entrants in the food and refreshment industry but medium threat in the home care industry. To achieve superior profitability in India, Unilever should focus on product differentiation, bundle pricing, scale economies, key markets, loyalty, and marketing strategies to gain competitive advantage.

1. FIVE FORCE
ANALYSIS ON
UNILEVER
Sameer Shaik
MBA IB A

2. Five Forces Food & Refreshment Home Care
Competitive Rivalry Medium High
Substitute Products Low Low
Power of Buyers High High
Power of Suppliers Low Low
Potential Entrants Low Medium

3. If Indian organizations are all producing similar products with
low switching costs, to achieve superior profitability-
■ Product Innovation and differentiation.
■ Bundle Pricing.
■ Captive Product Pricing.
■ Reaching Economies of scale.
■ Concentration on key markets.
■ Reaching high customer loyalty.
■ Affective marketing strategies.
■ Ultimately to reach the maturity stage in the industry life cycle, to gain high
competitive advantage through the above strategies.