Procter & Gamble
Procter & Gamble GBS Report & Recommendations
Introduction:
P & G is the quintessential American company, with more than 175 years of history. Coming from humble roots, it was established by a partnership of William Procter and his brother in law James Gamble. Over its extensive history, P&G has followed an aggressive “growth by acquisition” strategy which has transformed it into the global manufacturer of household & health items in the world. After P & G’s merger with Gillette in 2005, it controlled 22 individual brands, 8 of which would each be large enough to be included in the Fortune 100. Due to recent changes in market conditions and renewed competition, P & G started to change strategies and became more focused on growing its core businesses. As such, it was looking for ways to better manage divisions which did not serve a core business function, such as Global Business Services.
P & G SWOT Analysis:
Strengths:
* Efficient in creating new products as well as acquiring and growing existing products * A master at marketing existing and new products * Grown significant brand equity and customer loyalty to P&G products * Great at managing relationships with customers
Weaknesses:
* Slow to create innovative products to meet customer demands, more of a follower than a leader * Not always sensitive to changing tastes and trends within specific customer demographics * Company’s large size may be hindering its own growth
Opportunities:
* Expansion in global markets (especially in developing markets) * Newly created products for Men’s health show there’s untapped potential for that segment * Shifting consumer tastes are pointing to green/renewable products as the future
Threats:
* Price of inputs, especially raw materials, is rising * Highly regulated market in many countries about to get tighter * Global economic slowdown * Intense competition from competitors is
Introduction:
P & G is the quintessential American company, with more than 175 years of history. Coming from humble roots, it was established by a partnership of William Procter and his brother in law James Gamble. Over its extensive history, P&G has followed an aggressive “growth by acquisition” strategy which has transformed it into the global manufacturer of household & health items in the world. After P & G’s merger with Gillette in 2005, it controlled 22 individual brands, 8 of which would each be large enough to be included in the Fortune 100. Due to recent changes in market conditions and renewed competition, P & G started to change strategies and became more focused on growing its core businesses. As such, it was looking for ways to better manage divisions which did not serve a core business function, such as Global Business Services.
P & G SWOT Analysis:
Strengths:
* Efficient in creating new products as well as acquiring and growing existing products * A master at marketing existing and new products * Grown significant brand equity and customer loyalty to P&G products * Great at managing relationships with customers
Weaknesses:
* Slow to create innovative products to meet customer demands, more of a follower than a leader * Not always sensitive to changing tastes and trends within specific customer demographics * Company’s large size may be hindering its own growth
Opportunities:
* Expansion in global markets (especially in developing markets) * Newly created products for Men’s health show there’s untapped potential for that segment * Shifting consumer tastes are pointing to green/renewable products as the future
Threats:
* Price of inputs, especially raw materials, is rising * Highly regulated market in many countries about to get tighter * Global economic slowdown * Intense competition from competitors is