Analysis of Procter and Gamble - Research Paper Example

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Name Professor Subject Date Analysis of Procter & Gamble Competitive strategy-William Procter, a candle maker, and James Gamble, a soap maker, founded this giant and Fortune 500 Corporation in 1837 (corporate profile, web). Procter and Gamble (P&G) is based in Cincinnati, Ohio…
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Analysis of Procter and Gamble
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Download file to see previous pages Additionally, its strategy has been very effective worldwide that is exemplified by its 138,000 employees globally. And, at the same time, due to the worldwide demand for P&G’s services and products, its management is forced to devise such competitive strategy that ensures its sound global marketing strategy with innovation. However, it almost lost its market supremacy to competition in the mid 1980’s had it not been its unsound and aggressive play-to-win strategy (Davila, Epstein, & Shelton, 2006, p.73). After that period, the management of the company realized this fact and changed their competitive strategy. Rivals- stronger financial position both in the foreign and domestic market have left many of its rivals behind. As mentioned earlier, the company was declared as the 25th largest by revenue clearly provided its position in the U.S. market in comparison with its competitors such as Johnson & Johnson, Kimberly Clark, and Unilever. They are not only identified its main competitor in the U.S. market but also in the global market as well. However, the company has been successful in maintaining comparatively better financial position in the industry due to the fact that it has capability and ability to use the latest innovation in its products. And, besides, the P&G has very effective and efficient manufacturing processes that enable her to remain competitive in comparison with its rivals. New entrants- P&G operates in a diverse industry- ranging from consumer products to households. In the local as well as in the global market, the company uses innovation in its products in a way to ensure their consumers demands. As a result, the new entrants in the industry would face very tough time to stay competitive as the company has very strong and stable market brand image and perception. Buyers-the company sells a diverse range of buyers. They range from home products such as Ariel, Pantene, Head & Shoulders, laundry and cleaning products (detergents), beauty care (shampoos, cosmetics), paper goods (toilet papers), famine care (sanitary towels) food and beverages (snacks and coffee) and health care (medicine and toothpaste) (corporatewatch.org, web). The company products clearly highlight the diverse range of buyers that are being served globally by the company. Suppliers- P&G greatly values its suppliers and relationships with the suppliers. Recently, in that direction, the company has put into practice Combine Net’s approach to developing and building sourcing networks, called as expressive competition (Hughes, Jacobs, Begg, 2006). In this process, the P&G’s suppliers are greatly benefiting by this approach; expressive competition match demand to the efficient means of production and at the same time removes exposure risks in making offers. Aggregately, this is another evidence of the company in introducing innovative means to interact with its suppliers. Threat of substitutes- P&G has been famous for its high quality products which are pretty difficult to match or beat (Masahudu Gunu, 2010). Consumers want high quality goods at affordable and reasonable prices. It is this thought that has been the motto of P&G in its product development and innovation, making its products recognized worldwide. It would not easy for any new entrants to come up with new products, putting a tough time to P&G products. Additionally, the brand image of P&G is considerably stable globally. ...Download file to see next pagesRead More
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