P&G Strategic Analysis

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Strategic Analysis
Procter & Gamble:
The Beauty/Feminine Care Segment of the
Consumer Goods Industry

Executive Summary 3 Introduction 3 Company Overview 4 Mandate 4 Stakeholders 5 Internal Analysis 5 External Analysis 7 Competitive Forces 8 Macro Environment 8 Strategic Options 10 Strategy 1: Market Penetration 10 Strategy 2: Product Innovation and New Product Development 10 Strategy 3: Status Quo 11

Executive Summary

Procter & Gamble (P&G) is a world-leading producer of consumer goods. Today, it consists of over 20 million dollar brands (like Gillette) and operates in 42 countries
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P&G’s purpose is to touch and improve people’s everyday lives. This is an inspiring but demanding aspiration. There are nearly seven billion people on the planet today and P&G is currently reaching about 4.4 billion of them. The company knows that if this is done well, it will be rewarded with sales and profit growth, market share leadership, a strong company reputation and, ultimately, the creation of value that allows its people, shareholders and the communities in which they live and work to prosper.

P&G’s growth strategy, which was established two years ago, is inspired by its purpose detailed above. P&G is executing this strategy by innovating to improve people’s everyday lives in every part of the world, and by then expanding its portfolio of innovation up and down price tiers, into new markets, and into new and existing product categories (P&G, 2011).

Like any private sector organization, P&G’s list of stakeholders may include its employees, the communities in which it operates, its shareholders, various suppliers, and of course its consumers and customers.
Internal Analysis

As a large global company, P&G has strengths that have helped them to acquire such a vast market share. The company’s culture, strong product quality, the ability to understand customers, brand equity, and centralized management is at the
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