Unilever: "Path to Growth" Strategy II

More bad news came when Procter & Gamble acquired Gillette for $57 billion in stock to form a combined group with greater sales than Unilever and to increase its bargaining power with the big retailers. It took full advantage of the falling U.S. dollar and implemented an aggressive pricing strategy throughout Europe just at a time when Unilever was cutting spending.
Procter & Gamble after acquiring Gillette has raised its annual earnings growth target to 13-14 percent in fiscal 2005, its annual sales growth target to 5-7 percent from 4-6 percent, and its operating margins towards 25 percent from current levels of around 20 percent by the end of this decade. P&G's focus on cleaning and personal products, not food, has been one reason for its higher growth in comparison to Unilever.
Let me conclude on a positive note. In my view Unilever remains a business with leading market positions and plenty of potential. It is disappointing that today's management has not been able to use this position. But it is not too late.
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