Industrial Organization: Markets and Strategies Paul Belleáamme and Martin Peitz published by Cambridge University Press Part II. Theory of competition policy

How would you evaluate Paul Polman’s 2010 decision to implement a new strategy based on the Unilever Sustainable Living Plan (USLP)? What benefits did it offer? What risks did it present? Gary Hamel and C.K.Prahalad proposed a framework called the Core-Competence Market Matrix ( depicted in the picture above ) In my view, Paul Polman’s basic objective of implementing this new strategy based on USLP was to create a new set of core competence, which would be rare and not easy to copy. This new core competence ( as per VRIO ) model would give a competitive advantage to Unilever in a market in which competition was intense and the possibility to innovate was very little. Mr. Polman, through his new strategy, tried to operate in the upper left and right quadrant of the Core Competence Market Matrix in which he tr