Topic > P&G Case Analysis - 1421

P&G competes in five major industries: fabrics and home care, beauty care, child and family care, healthcare, and snacks and beverages. The five forces are the bargaining power of suppliers, the bargaining power of customers, the threat of new entrants, the threat of substitute products, and competitive rivalry within an industry. The various care products are not made from anything rare, so the suppliers in this case do not have significant power. So the threat here is low. However, many variations of these products exist, so threats from substitute products, competitive rivalry, and new entrants are high. For the same reason, since the customer has many options regarding these products, loyalty is not guaranteed. So the threat is very high. Overall, four of the five forces pose a serious threat, so these sectors are not attractive. Since there are many competitors, P&G must find ways to distinguish itself from rivals. The factors that determine them are marketing, technological innovation and accurate consumer feedback. In marketing terms, the public needs to be aware of the product, what it is used for and what makes it better than other alternatives. In terms of technological innovation, the product should have some advantage over the competitor's product, such as low cost or high performance. In terms of consumer feedback, data should be collected on what the customer liked about the product and what they didn't. This will allow the product to continue to evolve into what the customer wants. The tangible resources, in P&G's case, are a relatively large research department, marketing division, and budget. P&G has been strengthening research since 1890 and marketing since 1931. Its long history of finance... half paper... was too high, so Jager's strategy of achieving sales growth and developing new products quickly has worked. opposite for the company as sales growth continued to decline. The current competitive situation for P&G is that it is one of the largest and most successful consumer products companies. This is evident in the high volume of sales and profits experienced by the company. Furthermore, the company has updated all its brands and created new product categories through product innovation, thus P&G is considered a leader in the consumer market. On the other hand, the company has been cutting its capital and R&D expenses (in line with those of its competitors) to increase profits, which could hinder the company's growth. Therefore, competitively P&G may face difficulties in growing its earnings compared to its competitors.