Procter &Gamble Case Analysis
Industry Environment Analysis: consumer goods
- The consumer goods' is a global and mature industry.
- Highly competitive with an increasing number of competitors offering different versions of the same product and competing for price. Generic brands and Private-label goods are populating the market.
- Product innovation and quality are critical to succeed.
- Individual buyers have no bargain power. Instead, large retail chains and major supermarkets increase competition among consumer goods' manufacturers. Switching costs are low or in most cases null.
Position of the company in the Industry:
P&G has a global leader position in the consumer goods industry with many well known premium products in its portfolio like:
- Fabric and Home Care: Tide, Cascade
- Baby, Feminine and Family Care: Bounty
- Beauty Care: Max factor, Cover Girl, Head & Shoulders
- Health Care: Crest
- Food and Beverage: Folgers Coffee
Company Strategy Analysis
Procter & Gamble is a related diversified company with five main business segments: Fabric and Home Care; Baby, Feminine and Family Care; Beauty Care; Health Care; and Food and Beverage.
Competitive Strategy:
Market Target Broad P&G - Broad Differentiation Narrow Low Cost Differentiation
- Popular products are attractive for imitations
- Broad market target sensitive to product price, quality and innovation.
Competitive Advantage
Strategy performance:
Although Organization 2005 was conceived as a promising strategy to reinvigorate P&G's growth, its initial period propelled the company to financial problems that led to Jager's failure and subsequent resignation. In mid-2000 Lafley's administration initiate a second period for Organization 2005 and the new initiative improved the P&G finances.
The following is a comparative performance analysis of the two different administrations:
Jager:
Strategy
- The Company changed from its previous geographic-based
- The consumer goods' is a global and mature industry.
- Highly competitive with an increasing number of competitors offering different versions of the same product and competing for price. Generic brands and Private-label goods are populating the market.
- Product innovation and quality are critical to succeed.
- Individual buyers have no bargain power. Instead, large retail chains and major supermarkets increase competition among consumer goods' manufacturers. Switching costs are low or in most cases null.
Position of the company in the Industry:
P&G has a global leader position in the consumer goods industry with many well known premium products in its portfolio like:
- Fabric and Home Care: Tide, Cascade
- Baby, Feminine and Family Care: Bounty
- Beauty Care: Max factor, Cover Girl, Head & Shoulders
- Health Care: Crest
- Food and Beverage: Folgers Coffee
Company Strategy Analysis
Procter & Gamble is a related diversified company with five main business segments: Fabric and Home Care; Baby, Feminine and Family Care; Beauty Care; Health Care; and Food and Beverage.
Competitive Strategy:
Market Target Broad P&G - Broad Differentiation Narrow Low Cost Differentiation
- Popular products are attractive for imitations
- Broad market target sensitive to product price, quality and innovation.
Competitive Advantage
Strategy performance:
Although Organization 2005 was conceived as a promising strategy to reinvigorate P&G's growth, its initial period propelled the company to financial problems that led to Jager's failure and subsequent resignation. In mid-2000 Lafley's administration initiate a second period for Organization 2005 and the new initiative improved the P&G finances.
The following is a comparative performance analysis of the two different administrations:
Jager:
Strategy
- The Company changed from its previous geographic-based
Bibliography: - Crafting and Executing Strategy- Arthur Thompson. - Procter & Gamble Case