Essay On Proctor And Gamble

Supplier’s bargaining power: Most of the motorcycle suppliers depend on a single or two makers to purchase most of their products. This can cause great loss to a supplier if a buyer decides to switch to another supplier. This leads o the suppliers being too susceptible to demands hence they hold little authority.

Bargaining Power of Suppliers: The bargaining power of suppliers in the industry is low. There are numerous suppliers in this industry, and the large department stores have the ability to negotiate for the lowest prices. In addition, the switching costs are low, as the products are not highly differentiated. There are a large volume of purchases in the industry, allowing the department stores to exert even more power over the suppliers.

Bargaining power of buyers is medium-high because of the low switching costs and wider spectrum of similar products selling at competitive prices due to the influence of developing countries

The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. If there is a market with much choice supplier choice, bargaining power will be less.

Buyers (customers) have bargaining power when they are strong enough to be able to put collective pressure on the companies producing a product or a service. This power is highest when buyers are able to gather together and amount for a large percentage of the producer’s sales revenue or when there is a number of suppliers providing the same type of product. In short buyers with strong bargaining power can limit industry profitability by demanding price concession, better payment terms, or additional features and services that increase industry. Because Walmart is known for being one of the largest retail organizations, it has high bargaining power and can insist on lower prices, higher-quality products or additional services. Walmart has been known to demand that suppliers alter their distribution systems to accommodate their desire to reduce the inventory it holds in its warehouse. Because of high competition among suppliers, they will have a long-term positive impact on this entity.

The risk of generic substitution is also increasing with especially China dominating the production market. Customers will substitute for a generic product if the disposable incomes of the customers reduce resulting in customers willing to trade down for a inferior but cheaper product.

Intensity of rivalry among competitive firms. In the past, Staples has been successful in fighting against its competitors with its low prices and brand loyalty, but recently against Amazon there are bigger obstacles to overcome. The rivalry with Amazon, Walmart, Target and wholesale clubs is intense as they have more resources to use against Staples, such as the range of its customers and a thriving business line. Therefore, seeing that the rivalry is intense, it presents a threat to their profitability (Hill et al., 2015, p. 51). From this perspective, the competitive rivalry will be considered as high for Staples.

Proctor & Gamble co is a consumer goods company which has delivered product innovations such as Tide, Crest, Pantene, Downy, Pampers, Swiffer, Febreze, Olay and Gillette. P&G is also social responsible so they have started innovative programs such as Children’s Drinking water.

¨It is common in many industries to have a firm with a dominant market share. Market Leaders normally gain the most when the total market expands. Procter & Gamble is one of those Market Leaders¨ (Maulana, 2011). Leaders wants to continue being the number one firm in their industry. Their typical approach is to attempt to expand total market, protect their current market share, or grow their market share.

As per hoovers article “Johnson & Johnson, Kimberly-Clark Corporation, Unilever” are the major competitors of Proctor and Gamble.

 Procter & Gamble has  Procter & Gamble has strong brands to its wide global exposure. name. The company Its products are sold in boasts 24 billion dollar 180 countries through brands. It also claims 50 wide-ranging distribution leadership brands that channels including mass contribute 90% to its merchandisers and overall sales and profit. grocery stores.

The power of buyers is high because this company depends of the businesses and consumers’ demand. This is because they can decide where to buy

Procter and Gamble heritage began back in 1837 and has brought forth many brands over the years to make the consumers happy. Procter and Gamble Company have five segments under Global Business Unit (GBU): Health Care (Family, Baby, and Feminine), Beauty, Grooming and Home Care. The GBUs have a responsibility for developing the overall brand strategy and innovations with new product and upgrades, along with marketing plans. Proctor and Gamble customers include merchandisers such as stores, grocery stores, drug stores, membership clubs, department stores and salon distributors with their e-commerce sites.

Procter & Gamble (P&G) is a multinational corporation that provides consumer products in the areas of pharmaceuticals, cleaning supplies, personal care, and pet supplies. The global consumer goods company was started by William Procter, an English candle maker & James Gamble, an Irish soap maker in 1837, and has been well established since then, ranking fifth place of the "World's Most Admired Companies” by Fortune Magazine . P&G constantly strives to provide branded products and services of superior quality and value that improves the lives of the world’s consumers , where P&G’s brands serve 4.4 billion people in more than 180 countries.

If buyers are able to bid down prices or demand higher quality products this increases competition among the competitors. The bargaining power of buyers is