Pg Japan

1454 Words6 Pages
15/12/2009 Author: Christopher A. Bartlett Source: HARVARD BUSINESS SCHOOL PUBLISHING Description: Organization 2005, a reorganization that places strategic emphasis on product innovation rather than geographic expansion and shifts power from local subsidiary to global business management. In the context of these changes introduced by Durk Jager, P&G’s new CEO, Paolo de Cesare is transferred to Japan, where he takes over the recently turned-around beauty care business. Within the familiar Max Factor portfolio he inherits is SK-II, a fast-growing, highly profitable skin care product developed in Japan. Priced at over $100 a bottle, this is not a typical P&G product, but its successful introduction in Taiwan and Hong Kong…show more content…
Yet, actual organizational transitions and changes following the O2005 are not complete and are in a fragile state that could not fully support the project and provide it a cross corporate support world wide. 3. Assuming that SK-II is globalized, what should Paolo's expansion strategy be in rolling out SK-II? Which country should be a priority? For a company to succeed, its strategy must either fit the industry environment in which it operates, or the company must be able to reshape the industry environment in which it operates to its advantage through its choice of strategy. Companies typically fail when their strategy no longer fits the environment in which they operate. To achieve a good fit, Paolo and his managers must understand the forces that shape competition in their external environment. This understanding enables them to identify strategic opportunities and threats. An expansion strategy does not necessarily lead to expansion of a market. For example concentration, integration, diversification, cooperation, etc.. are different ways to expand yet do not necessarily lead to expansion of a market for a particular product. An extension of a market by reaching out to a new market segments (such as geographically) is not the same as regional, national, or international geographic expansion of the company's sales. The first option leads to an increase in primary demand for the product category. But
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