Procter and Gamble Case Study
Executive Summary
Procter & Gamble (P&G) is a world leading producer of consumer goods. It first opened its doors in 1837 selling soap and candles. Today it consists of over 20 million dollar brands (like Gillette) and operates in 42 countries.
The company has achieved success by creating high quality, brand recognized products that are sold on multinational level. It has found the necessary efficiencies to be able to satisfy its consumers better than the competition.
Despite its success, the future of P&G as an industry leader will depend on strategies they adopt. The industry having matured, rivalry among the existing competitors getting more intense and the cost of raw materials continually rising makes it imperative that P&G adopt practices that will maintain their competitive advantage.
One strategy is to partner in a global alliance with a foreign company to gain knowledge and skills needed to survive in different cultures. Second it could specialize in strictly skin care products allowing P&G to concentrate all their efforts on innovating new skin care products, and thirdly P&G could expand on all of its current business segments but focus on targeting the low income consumer.
Introduction
Procter & Gamble (P&G) is one of the worlds leading consumer goods company specializing in Baby/Family care, Fabric/Home care, Snacks and Beverage, Health Care, and Beauty/Feminine care with annual sales at approximately $68 million. Still, competition is fierce in the consumer goods industry and P&G needs to implement a strategy that will maximize their strengths and put them ahead of their competitors.
This report will focus on the Beauty/Feminine product mix of P&G and present three strategies that they could consider. A brief company history will lead, followed by an external analysis of the competitive and macroeconomic forces facing P&G. After, an internal analysis will focus on the resources and capabilities that shape P&Gs distinctive competencies. In the final section, three strategies will be analyzed that P&G will need to consider very carefully before deciding the best for the companys future.
In reading this document it is important to note that it is mostly based on the information contained in “Procter & Gamble: The Beauty/Feminine Care Segment of the Consumer Goods Industry” (Mockler, 2007), and thus prepared without access to the companys financial statements or with independent industry data. P&Gs website was used for the Mandate section.
Company Overview
Procter & Gamble, formed in 1837 by William Procter and James Gamble, started by making and selling soap and candles, and in 1862 won a contract to supply these items to