Question: Just need a response for the 2 separate post below Post 1 During the 1990s, Unilever faced a rapidly evolving competitive environment characterized by swift
Just need a response for the 2 separate post below
Post 1
During the 1990s, Unilever faced a rapidly evolving competitive environment characterized by swift globalization, technological shifts, and intensified competition from local and international contenders. The traditional decentralized operational model of Unilever, with individual subsidiaries in countries focusing on their specific markets, began to need to be updated. In response to these challenges, Unilever embarked on significant internal restructuring. The company transitioned from its decentralized structure to a more centralized approach to capitalize on global brand building, eliminate redundancies, and achieve economies of scale. This change aimed to position Unilever more competitively in the global marketplace.
The rebranding of Hindustan Lever Limited (HLL) to Hindustan Unilever Limited (HUL) is a testament to Unilever's adaptive approach. By maintaining "Hindustan" in the title, HUL displayed its unwavering commitment to the Indian market. Simultaneously, this rebranding tied HUL closely to the global Unilever identity, highlighting the company's broader international strategy that interweaves global and local priorities. This strategic move underscores HUL's balance between worldwide reach and local resonance.
As for Unilever's broader strategy, it adopts a blend of global standardization and localization. While its push for a cohesive global brand and centralized decision-making signifies standardization, actions like keeping the local resonance in brand names and launching region-specific initiatives indicate a straightforward localization approach. This dual strategy empowers Unilever to maximize its global presence while catering effectively to individual market nuances.
Post 2
Before, Unilever was organized in a decentralized structure; however, due to competition, the company was forced to change its structure, making decentralization obsolete. This structure did not support global brands' growth and needed economies of scale, leading to a costly structure. As a result, the company started restructuring internally(Peng, 2023).
What changes did Unilever make in its strategy and structure to compete effectively in the new environment?
Following the liberalization of the Indian economy, which allowed mergers, alliances, and acquisitions, Unilevermergedwith companies suchasTata Oil Mills Company. It also formed a joint venture with Lakme Limited and created another jointventurewithaUS-basedcompany, addingthebrandto the Unilever company(Peng, 2023).
Is Unilever pursuing a global standardization strategy or a localization strategy?
Unilever has been going for the global standardization strategy, investing in facilities, manufacturing, and distribution ofitsvarious products in different regions.All this started with the company going through an internal restructuring in order to be able to keep up with competition and the trend of globalization. However, as much as that is the case, the company has also tried to maintain some aspects of localization, especially considering its strategy of naming the company by the country it operates in, which is part of its social responsibility or commitment to the region's market
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