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Value Chain Analysis Of Procter And Gamble Case Study


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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 $10billion. P&G has a presence in more than 180 countries with brands that accumulate to in excessof $25 billion.The company has achieved success by creating high quality brand recognized products that aresold on multinational level. It enjoys one of the largest brand names in household products likePampers, 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 tomaintain its competitive advantage over its rival. Consumer Goods industry where P&G operateshas 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 furthermarket 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 withlocal businesses in various geographical regions. Lastly, P&G can specialize in skin care/beautysegment of consumer industry. P&G can provide consumers with products that are made withnatural ingredients as trend in health and wellness is growing along with providing specializedproducts for men.

Situation Analysis and Recommendation Conducted for P&G Essay

2677 Words11 Pages

Situation Analysis and Recommendation Conducted for P&G

1.1Company Background ---------------------

P&G is one of the best known and biggest consumer goods companies in the world. It owned several well-known brands that were sold in over 140 countries to nearly 5 billion consumers. For example, Tide, Pantene and Pampers.

P&G was founded by William Procter and James Gamble as a partnership in Cincinnati, Ohio, merging Procter¡¯s candle-making company with gamble¡¯s soap business in 1837. In the early 1860s P&G¡¯s initial foray into branding was the Moon and Stars. After 50 years development, P&G became one of the first companies in the US to offer a profit-sharing program for its…show more content…

1.2 Vision ----------

The vision of P&G is that to be, as recognized, the best consumer products and services company in the world.

1.3 Mission -----------

The mission of P&G is to increase its after-tax profits by approximately $900millinon by fiscal 2004.

1.4 Current strategies ----------------------

1.4.1 Product diversification

One of the strategies for their product is diversifying. P&G had five business segments which are Fabric and Home Care, Baby, Feminine, and Family Care, Beauty Care, Health Care and Food and Beverage. Each of the segments include different kinds of products which from toothpaste to medicine and nearly cover everything we use in life. P&G as diversity is a fundamental business strategy because their customers and suppliers become more and more diversified every day. So P&G¡¯s success depends on their ability to understand diverse consumers¡¯ needs.

1.4.2 Cost cutting

As an expansion and acceleration of Organization 2005, P&G improve the company¡¯s competitiveness and revitalize long-term growth through reform its¡¯ cost structure by further reducing overhead and manufacturing cost. During 2000, P&G reduced staffing by 9 percent of P&G¡¯s workforce .In manufacture functions, reductions came as a result of both plant closures and rationalization.

1.4.3 Innovation support by

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