Proctor and Gamble - Strategic Management Case Study
EXECUTIVE SUMMARY
Proctor and Gamble (P&G) over its journey of about 175 years has become one of the world’s largest consumer goods Company with sales of nearly $80 billion and a net profit of about $10 billion. P&G has a presence in more than 180 countries with brands that accumulate to in excess of $25 billion.
The company has achieved success by creating high quality brand recognized products that are sold on multinational level. It enjoys one of the largest brand names in household products like Pampers, Gillette, Tide, Ariel, Downy, Pantene, Head & Shoulders, Olay, Oral-B, Crest, Dawn, Fairy and Always and segments like household care, beauty, grooming, and personal health care.
Although, P&G has world renowned brands, P&G needs to adopt strategies that enable it to maintain its competitive advantage over its rival. Consumer Goods industry where P&G operates has matured reaching the consolidation stage and competition amongst rivals is intense.
P&G has many strategic options create competitive advantage over its rivals such as further market penetrations by rebranding its current line of products and selling them at a lower price. Another option for P&G is to expand in the emerging markets by collaboration or alliances with local businesses in various geographical regions. Lastly, P&G can specialize in skin care/beauty segment of consumer industry. P&G can provide consumers with products that are made with natural ingredients as trend in health and wellness is growing along with providing specialized products for men.
INTRODUCTION
P&G is a part of a competitive industry, and as such faces very stiff and fierce competition from its rivals. The competition faced by the company is virtually on every front like, market share, product line up, innovation of new products, R&D for new and existing products. It has witnessed a drop in market share and revenue from the developed market and but sustained
Proctor and Gamble (P&G) over its journey of about 175 years has become one of the world’s largest consumer goods Company with sales of nearly $80 billion and a net profit of about $10 billion. P&G has a presence in more than 180 countries with brands that accumulate to in excess of $25 billion.
The company has achieved success by creating high quality brand recognized products that are sold on multinational level. It enjoys one of the largest brand names in household products like Pampers, Gillette, Tide, Ariel, Downy, Pantene, Head & Shoulders, Olay, Oral-B, Crest, Dawn, Fairy and Always and segments like household care, beauty, grooming, and personal health care.
Although, P&G has world renowned brands, P&G needs to adopt strategies that enable it to maintain its competitive advantage over its rival. Consumer Goods industry where P&G operates has matured reaching the consolidation stage and competition amongst rivals is intense.
P&G has many strategic options create competitive advantage over its rivals such as further market penetrations by rebranding its current line of products and selling them at a lower price. Another option for P&G is to expand in the emerging markets by collaboration or alliances with local businesses in various geographical regions. Lastly, P&G can specialize in skin care/beauty segment of consumer industry. P&G can provide consumers with products that are made with natural ingredients as trend in health and wellness is growing along with providing specialized products for men.
INTRODUCTION
P&G is a part of a competitive industry, and as such faces very stiff and fierce competition from its rivals. The competition faced by the company is virtually on every front like, market share, product line up, innovation of new products, R&D for new and existing products. It has witnessed a drop in market share and revenue from the developed market and but sustained
References: Mockler, R.J. (2007). “Procter & Gamble: The Beauty/Feminine Care Segment of the Consumer Goods Industry” In C.W.L. Hill & G.R. Jones, Strategic Management: An Integrated Approach, 6th Edition. Boston: Houghton Mifflin Chung, J. (2012). “P&G 's Board 'Unanimously Supports ' CEO McDonald” Retrieved from http://online.wsj.com/article/SB10000872396390444464304577534930564069566.html Monk, D. ( 2012) “Procter & Gamble planning nine new product launches” Retrieved from http://www.bizjournals.com/cincinnati/blog/2012/09/procter-gamble-planning-nine-new.html Annual Report (2012) Retrieved from http://annualreport.pg.com/annualreport2012/files/PG_2012_AnnualReport.pdf P&G History (2012) Retrieved from http://www.pg.com/translations/history_pdf/english_history.pdf P&G Purpose, Vision and Principles. (2012) Retrieved from http://www.pg.com/translations/pvp_pdf/english_PVP.pdf