Cultural adaptation of Unilever in Vietnam

Abstract: The purpose of this study is to describe and analyze (1) how Vietnamese business culture resembles and differs from Unilever corporate culture, (2) what advantages and disadvantages are resulted from these similarities and differences, and (3) how the company made use of the advantages and overcome the disadvantages. This thesis also aims at (4) indicating some shortcomings in Unilever‟s adaptation strategy and providing some recommendations. This research work is qualitative in nature and is based upon a case study. Both primary and secondary data are used for the case analysis. Primary data are collected by semi-structured interviews. As a Western company entering Vietnam – an Eastern market, Unilever has encountered both challenges and benefits from the differences and similarities between its global core values and Vietnamese culture. With its global vision: “We have local roots with global scale”, the company made a number of changes to accommodate the differences and took advantage of the similarities. Its adaptation strategies not only build up a strong and appropriate culture but also act as a source of competitive advantage, which contributes to Unilever impressive success in theVietnamese market. However, there are still some shortcomings that need to be taken into consideration.