...P&G Porters and Swot Porter’s five forces Michael Porter developed a framework consisting of five competitive forces, which analyze how industry factors impact a company’s strategy. These factors are: threat of new entrants, power of buyers, power of suppliers, availability of substitutes and competitive rivalry. Threat of new entrants There are many different barriers in the FMCG industry that a new entrant would have to overcome to enter. P&G has a huge competitive advantage over new entrants due to following : Established economies of scale: P&G has huge production capabilities and which has resulted in advantage over new entrants as it will be difficult for the new entrant to compete on cost, quantity produced and price. P&G also has the first mover advantage. Distribution network: Access to existing distribution channels is a substantial barrier that new entrants have to face. Supermarkets and other retail stores have a limited amount of shelf space available for consumer goods. It is difficult for new entrants to fight for these shelf spaces as the brand recognition, consumer relationship of P&G makes it difficult for new entrants to get shelf spaces. Legal barriers: Legal barriers can also make it hard for new entrants to enter the personal products industry. A new entrant has to overcome many regulations, laws, patents, and copyrights that they have to abide by when they are entering into an industry. It is a research oriented industry and hence has...
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...entrants There are many different barriers in the FMCG industry that a new entrant would have to overcome to enter. P&G has a huge competitive advantage over new entrants due to following : Established economies of scale: P&G has huge production capabilities and which has resulted in advantage over new entrants as it will be difficult for the new entrant to compete on cost, quantity produced and price. P&G also has the first mover advantage. Distribution network: Access to existing distribution channels is a substantial barrier that new entrants have to face. Supermarkets and other retail stores have a limited amount of shelf space available for consumer goods. It is difficult for new entrants to fight for these shelf spaces as the brand recognition, consumer relationship of P&G makes it difficult for new entrants to get shelf spaces. Legal barriers: Legal barriers can also make it hard for new entrants to enter the personal products industry. A new entrant has to overcome many regulations, laws, patents, and copyrights that they have to abide by when they are entering into an industry. It is a research oriented industry and hence has lot of copyright and legal issues. This almost eliminates the threat of a new entrant in the personal products industry. Power of buyers Although P&G is an extremely large company, its future is dependent on its buyers. P&G is heavily dependent on Wal-Mart and its affiliates for generating a major part of its revenue. Sales to Wal-Mart and...
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...Beauty Segment l This segment includes cosmetics, fragrances, hair care, and skin care products Beauty Segment l l Beauty accounts for approximately 34% of P&G’s product portfolio. 24% of Net Sales & Net Earnings – Head & Shoulders, Olay, and Pantene are some of the biggest brands within this segment. Strength – Hair Care l Strong focus on research&developement - promote innovation and bring new products to the Highly recognizable brand-building - shape brand-inspired, benifit-driven brands. market quicker l l Great product availability - products are sold at practically all domestic retailer chain and drug stores. l Large scale production. Weakness- Hair Care l l l l Losing market share rapidly Women oriented products Limited diversity products (Women oriented products ) Limited functions (less choices for customers) Opportunities- Hair Care Hair and Beauty products for men l Online social networks and internet marketing techniques l Try to pursue growth overseas l Expand brands for hair care products( cut off some other less profitable brands in the beauty segment. - objective is to invest 20 most profitable innovations l Threats- Hair Care l Greatest threat to P&G’s Beauty Segment is the Threat of Rivalry – Unilever, L’Oreal l l Mature Market Competitors have more diversified products optional l boost volume sales growth Price increases help to drive...
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...strategic business units. The corporation that will be examined is Proctor and Gamble. This study will begin by understanding the parent corporation through its history, its basic or generic corporate strategy, the current structure of the corporation, and its overarching business model. The case study will then thoroughly examine the selected strategic business unit to include its value chain, strengths weaknesses opportunities and threats (SWOT), marketing and sales, comparison to competitors, stock trends and shareholder value. In order to complete this study the effects of corporate parenting strategy, an examination of its resources and capabilities, and review of recent and emerging trends within the industry must also be examined. However, before this paper can delve into Proctor and Gamble and its strategic business unit basic theory and business analysis techniques must be determined and defined. The different theories and analysis techniques that will be used are Value Chain Analysis, Corporate Parenting Analysis, SWOT Analysis, and analysis of corporate resources and capabilities. These will be evaluated using the techniques presented by Thompson, Peteraf, Strickland and Gamble (2013) including their six steps to assessing corporate strategy and using Porter’s five forces model. Business Theories and Analysis Techniques According to Thompson, Peteraf, Strickland and Gamble (2013) an analysis should include answering and examining six questions. First, how...
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....................................... 2 1.1. 2. Aim of the report .................................................................................................. 2 CONSUMER BEHAVIOUR ON PURCHASE OF DETERGENTS IN BRAZIL ................. 2 2.1. 2.2. Consumer decision Process ................................................................................. 2 Influences on consumer decision making ............................................................ 2 3. MAIN PLAYERS AND THEIR CURRENT STRATEGIES .................................................. 3 3.1. 3.2. Unilever and their current strategies ................................................................... 3 P&G and their current strategies ........................................................................ 4 4. 5. SWOT ANALYSIS ............................................................................................................... 4 STRATEGIES FOR UNILEVER ......................................................................................... 5 5.1. 5.2. Growth Strategies ................................................................................................ 5 Market Penetration Strategy ................................................................................ 6 6. 7. CONCLUSION ................................................................................................................... 8 REFERENCES .............................................................
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...Internal Analysis l l SWOT Objectives Marketing Strategy Marketing Strategy Marketing Plan (4P’s) Budget & Controls 1 2/28/2011 Executive Summary Brief summary of the main conclusions, objectives, strategy, l i bj ti t t implementation and required budget. Executive Summary External Analysis Internal Analysis l l SWOT Intended for management to find The plan’s major points quickly. Objectives Marketing Strategy Marketing Strategy Followed by a table of contents Marketing Plan (4P’s) Budget & Controls External Analysis • Customer Analysis – (Major) segments – Customer needs – b h i behaviour Executive Summary External Analysis Internal Analysis l l SWOT Objectives Marketing Strategy Marketing Strategy Marketing Plan (4P’s) Budget & Controls • Competitor Analysis – Strategy – Market position – 4 P’s • Market Analysis – Define market – Size growth trends Size, growth, trends • Macro environment – Demographic, technological, economic, cultural, legal Opportunities & Threats 2 2/28/2011 Internal Analysis Current situation in Company X Executive Summary External Analysis Internal Analysis l l SWOT Objectives Marketing Strategy Marketing Strategy Marketing Plan (4P’s) Budget & Controls Past & current strategies • Past & current strategies • Four P’s – – – – Current products Prices Advertising/promotions Distribution (developments) • Sales profits Sales, profits • Problems Strengths & Weaknesses SWOT • Both SW and OT are a ...
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...5.1. SWOT Analysis 5 - 10 5.2. Financial Ratios 11 - 14 5.3. Porter Five Forces Analysis 14 - 16 5. Strategic Formulation 16 - 17 6.4. Recommendation for Alternative Strategies 17 - 19 6.5. Selection of Alternative Strategy 19 6. Strategic Implementation 19 - 20 7. Evaluation and Control 20 - 22 8. Reference / Work Cited 23 - 26 1. Executive Summary The objective of this case study is to assess the Procter & Gamble (P&G) corporation within its current environment by evaluation of its present performance with in its industry (Hunter, 2009). The assessment is based on information provided in the 2007 case study by Professor Shamsie and Eisner as well as various other secondary research materials. The objectives of the case analysis are to point out potential problems with P&G, conducting a SWOT analysis, strategic Porter Five Forces analysis, reviews various recommendations to the problems stated and implement a strategic recommendation. Regarding the problem in this case, as research will show, P&G’s faces three major problem areas within the organization. The problems reach from struggle with sustainable product innovation, increased reliance on one sided distribution channels and leadership in-cohesiveness within the company. To support these assumptions, comprehensive environmental scanning has been conducted through a SWOT and Porter...
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...activity that firm performs especially well. When a core competence evolves into a major competitive advantage, it will turn into distinctive competence. Core competencies may include any combination of skills, technologies, processes, knowledge or expertise and are often achieved as a result of long-term development processes and/or experiences (Mayhew, 2010). Competitive advantage on the other hand is defined as a measure relative to rivals in a given industry. Competitive advantage happen when a firm can do something that rival firm cannot do, or owns something that rival firm desire (Fred, 2013). For example, Nestlé core competency is food and beverages that is full with nutrition, health and wellness. By defining own core competencies and SWOT (strength, weaknesses, opportunity and treats) the company will be able to focus on its organisation uniqueness. In this study, I will focus on the core competency for Company SapuraKencana Petroleum Berhad. This study is organised as follows; section 2.0 will be informing the background of SapuraKencana Petroleum Berhad. Section 3.0 is regarding SapuraKencana Petroleum general environment analysis which divided into five broad categories; economic force, social, cultural, demographic, and natural environment forces, political, governmental and legal forces,...
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...Swiffer, and Duracell. However, in the last 10 years, P&G has experienced a loss of sales. Through an analysis of the company and its history, its visions and goals, a SWOT analysis, and the Porter’s Five Forces Model, the problems Procter & Gamble face will be identified, discussed, and possible solutions and recommendations will be given. Keywords: Procter & Gamble, brands, analysis, consumer-goods Procter & Gamble: A Case Study Analysis Procter & Gamble is a company that specializes in consumer products for households, such as cleaning supplies, hygienic products, and cosmetics. The company has more than 25 recognizable brands that “each generate more than $1 billion in sales”, including Pampers, Downy, Olay, Crest, Febreze, Tide, Braun, Duracell, and Pantene, making P&G one of the most well-known consumer products companies in the world. It has also recently acquired brands such as Gillette, Wella, and Clairol. Although P&G is one of the most recognized enterprises in the world, for the past 6 years, the company has been struggling to keep sales up and increase growth. Through an analysis of the company, these problems will be identified, discussed, and possible solutions will be given. About the Company A Brief History The company began in 1837 in Cincinnati, Ohio, by William Procter, a candle maker, and James Gamble, a soap maker (“A company history”, n.d.). Naturally, P&G began by selling candles and soap, but slowly moved...
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...Procter & Gamble is an American global corporation based in Cincinnati, Ohio. It’s known as the world’s largest consumer goods company. P&G is ranked 86 in the 2012 fortune 500 list with a revenue of $ 82.5 billion. As of 2008, P&G is the 23rd largest US company by revenue and 14th largest by profit. P&G India is a subsidiary of world’s largest consumer goods company Procter & Gamble a nd the largest and fastest growing consumer goods companies in India. P&G India, was established in 1964 and serves over 650 million consumers. P&G operates under three entities in India : “Procter & Gamble Hygiene and Health Care Limited”, ‘Gillette India Limited’, and ‘Procter & Gamble Home Products’. These three entities have a direct reach of 1.3 million outlets across India. invested in the country via its five plants and over nine contract manufacturing sites. creates 26,000 jobs directly and indirectly. Procter & Gamble, will build its largest manufacturing plant in the Indian sub-continent in Hyderabad by investing 345 crore. 1. HOW P&G WAS BORN? William Procter, a candle maker, and James Gamble, a soap maker, immigrants from England and Ireland respectively who had settled earlier in Cincinnati, who met as they both married sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-in law called a meeting in which he convinced his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter...
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... 1.1 Procter and Gamble (P&G), as a whole 1 1.2 Procter & Gambles Sverige AB 1 2.0 Marketing Campaign 2 2.1 Overview 2 2.2 Campaign Impact 3 3.0 Marketing Strategy 3 3.1 Analysis of Advertisement in Sweden 3 3.1.1 Root Cause Analysis (RCA) 4 3.1.2 Proposed Solutions and Possible Outcomes 4 3.2 Barriers of Communication 4 4.0 SWOT Analysis of P&G Sverige AB 6 4.1Strength 6 4.2 Weakness 6 4.3 Opportunity 6 4.4 Threats 6 4.5 SWOT Matrix Analysis 7 5.0 Marketing mix analysis 7 5.1 Product analysis 7 5.2 Price Analysis 8 5.3 Place/Distribution Analysis 9 5.4 Promotion Analysis 9 6.0 Conclusion 9 7.0 Appendices 10 1.0 Introduction 1.1 Procter and Gamble (P&G), as a whole The Procter & Gamble Company (also known as P&G) initiated a partnership agreement between William Procter and James Gamble, at the year of 1837. The small business was initially a soap and candle shop, but now an American Multinational Company (MNC) for Fast Moving Consumer Goods (FMCG). P&G who has never neglected the importance of human capital and being passionately develop talents that show great curiosity, appreciation towards diversity, and flexibility in tackling tricky problems. With that, P&G has been rated as the Top 7 in the World’s Top Employers for New Grads at the year of 2014 (refer Figure 1). Comparing between Procter and Gamble (P&G), Colgate-Palmolive (CL), and Unilever, P&G is ranked the second most...
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...Notion of Technology 11 2.4 The SWOT Framework 14 3. Research Methodology 17 3.1 Introduction 17 3.2 Justification of Theoretical Approach 17 3.3 Research Paradigm 17 3.4 Research Methodology 18 3.5 Ethical considerations 21 3.6 Challenges Encountered 21 3.7 Alternative Approach 22 4. Discussion and Findings 24 4.1 Introduction 24 4.2 Case Discussion and Analysis 24 4.3 Case Findings 29 5. Conclusion 31 5.1 Key Findings and Recommendations 31 5.2 Limitations 31 5.3 Future Research Options 32 6. Appendix 33 Appendix A: References 33 Appendix B: Interview Questions 36 Appendix C: Activity Plan 37 Abstract Gone are those days when firms used to just blindly invest in technology and forget. In this era of rapidly changing market needs and increasing use of technology, it is extremely significant and almost mandatory for firms to formulate a strong socio-technical network involving both technical and non-technical artefacts and structured around the organizational business strategies in order to attain set goals. Corporations all across the world especially Multi National Corporations (MNCs) which work twenty four hours round the clock and possess some of the best brains of the world, innovatively use technology as part of their business and operational processes. Similarly, this piece of study attempts to explore the way, one of the world’s best consumer goods manufacturer i.e. Procter & Gamble (P&G) uses the power of technology...
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...external opportunities and internal strengths while working around external and internal weaknesses Wheelen / Hunger, 2010, p 224 SWOT Analysis SWOT- Strengths-WeaknessesOpportunities-Threats Strategy = opportunity / capacity Opportunity has no real value unless a company has the capacity to take advantage of that opportunity Wheelen / Hunger, 2010, p 224 Institut für Strategisches Management Distinctive Competency – Success ? A distinctive competency in a key resource or key capability of a company is no guarantee for a competitive advantage Weaknesses in other resource areas can prevent strategy from being successful Wheelen / Hunger, 2010, p 224 Institut für Strategisches Management SWOT - Analysis Broader view of strategy SA = O / (S – W) Strategic Alternative = Opportunity : Strengths – Weaknesses More investment in strengths to make them stronger ? More investment in weaknesses to at least make them competitive ? Wheelen / Hunger, 2010, p 224 Institut für Strategisches Management Criticisms of SWOT analysis Generates lengthy lists Uses no weights to reflect priorities Uses ambiguous words and phrases Same factor can be in 2 categories No obligation to verify opinion with data or analysis Requires only a single level of analysis No logical link to strategy implementation Wheelen / Hunger, 2010, p 224 Institut für Strategisches Management Strategic Factor Analysis Summary SFAS summarizes an organization’s strategic...
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...per capita income of people and increasing awareness through advertisements, print media, etc is increasing the demand for oral care products. This marks a sharp transition from use of tooth powders to the use of value added toothpastes like mouth washes, gels and teeth whitening products. Currently the size of global oral care market is about $30 billion. Out of this, India contributes 5% of the total market which estimates the Indian oral care market to be $1.5 billion. The Indian oral care market registered an annual growth of 13% during FY 13. On the other hand, the growth in global market was 3% during the same period. The major players in the Indian Oral care industry are: Colgate, Unilever, Dabur and GlaxoSmithKline (GSK). P&G is a new entrant with the launch of Oral B Pro-Health in July‘13 in the Indian market. According to company sources, it will be available in mint flavour with the specifications : 140 gms (for Rs. 98) and 75 gms (for Rs. 59). In the first month, the company registered a market share of 0.2% in the first month. The key factors responsible for attracting global players like Proctor & Gamble to the Indian market are i) Increasing demand from rural India – Only 42% of the...
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...per capita income of people and increasing awareness through advertisements, print media, etc is increasing the demand for oral care products. This marks a sharp transition from use of tooth powders to the use of value added toothpastes like mouth washes, gels and teeth whitening products. Currently the size of global oral care market is about $30 billion. Out of this, India contributes 5% of the total market which estimates the Indian oral care market to be $1.5 billion. The Indian oral care market registered an annual growth of 13% during FY 13. On the other hand, the growth in global market was 3% during the same period. The major players in the Indian Oral care industry are: Colgate, Unilever, Dabur and GlaxoSmithKline (GSK). P&G is a new entrant with the launch of Oral B Pro-Health in July‘13 in the Indian market. According to company sources, it will be available in mint flavour with the specifications : 140 gms (for Rs. 98) and 75 gms (for Rs. 59). In the first month, the company registered a market share of 0.2% in the first month. The key factors responsible for attracting global players like Proctor & Gamble to the Indian market are i) Increasing demand from rural India – Only 42% of the...
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