P&G Japan the Sk-Ii Globalization Project
GMBA 5075
International Management
Case 5-2 - P&G Japan: The SK-II Globalization Project
Group Report
Due date: 12/03/12
By: Wendy Rodriguez
Francisco Oliveira
Francisco Andujar
Yichen Li
Intro:
This case describes how SK-II which is a fast-growing skin care product is becoming very popular with a price to match its performance. After being introduced in Hong Kong and in Taiwan, P&G believes that this brand has a strong global potential. At the conclusion of this case, the company is left thinking whether or not to grow into both the European and the Chinese market.
Statement of problems:
In the year 2005 P&G went through a system of restructuring and strategic emphasis on innovation instead of geographic growth giving all powers to their global business management team. * In the middle of the 1980s there was a difficult beginning in Japan because this country was a very small contributor to the international growth of P&G. * By the middle of on the 80s, and twelve years after entering Japan, they had accumulated losses of over $200 million and the number was growing. * The company was suffering a negative operating margin of about 75% * There was a large decrease in sales going from 44 billion yen to about 26 billion yen in five years. * Company management wondered if they were doing the right thing by staying in Japan.
Obstacles:
* In the later part of the decade P&G began to see growth and economic improvement that led to increasing numbers. This did not last long because troubles came back during the early 90s. * In Japan, P&G’s strong performance began to slow down. * Japan’s economy collapsed in 1991. * P&G lost market shares to competitors. * Sales decreased by 4% each yeah and by 1996 this totaled to about 20%. * They were not a strong competitor in Japan because they only sold 300 million in cosmetics giving them only 3% of the total cosmetic market shares. * In
International Management
Case 5-2 - P&G Japan: The SK-II Globalization Project
Group Report
Due date: 12/03/12
By: Wendy Rodriguez
Francisco Oliveira
Francisco Andujar
Yichen Li
Intro:
This case describes how SK-II which is a fast-growing skin care product is becoming very popular with a price to match its performance. After being introduced in Hong Kong and in Taiwan, P&G believes that this brand has a strong global potential. At the conclusion of this case, the company is left thinking whether or not to grow into both the European and the Chinese market.
Statement of problems:
In the year 2005 P&G went through a system of restructuring and strategic emphasis on innovation instead of geographic growth giving all powers to their global business management team. * In the middle of the 1980s there was a difficult beginning in Japan because this country was a very small contributor to the international growth of P&G. * By the middle of on the 80s, and twelve years after entering Japan, they had accumulated losses of over $200 million and the number was growing. * The company was suffering a negative operating margin of about 75% * There was a large decrease in sales going from 44 billion yen to about 26 billion yen in five years. * Company management wondered if they were doing the right thing by staying in Japan.
Obstacles:
* In the later part of the decade P&G began to see growth and economic improvement that led to increasing numbers. This did not last long because troubles came back during the early 90s. * In Japan, P&G’s strong performance began to slow down. * Japan’s economy collapsed in 1991. * P&G lost market shares to competitors. * Sales decreased by 4% each yeah and by 1996 this totaled to about 20%. * They were not a strong competitor in Japan because they only sold 300 million in cosmetics giving them only 3% of the total cosmetic market shares. * In