Swot Analysis Of Procter & Gamble

1181 WordsSep 20, 20175 Pages
Introduction Procter & Gamble started as a small soap and candle company in 1937. Since then, Procter & Gamble (P&G) has grown to be a global leader in the manufacturing and selling of household products. Over the years, P&G has been instrumental in the innovation of common corporate practices, such as employee profit-sharing programs, market research, and brand-management systems. The multinational corporation sells its products (at least 250 household products) through a well-structured system of mass merchandisers, grocery stores, department e-commerce, and other specialty stores, like beauty or baby stores, in more than 170 nations across the globe (Frank, 2017). Procter & Gamble business segments include the following categories;…show more content…
Besides, P&G faces strong competition from Colgate Palmolive and Unilever as the main rivals. 2014 2015 2016 P & G Revenue $74,401 $70,749.00 $65,299.00 Net Income $11,463.00 $7,036.00 $10,508.00 ROS 0.15 0.09 0.16 Unilever Revenue $48436.00 $53,272.00 $52,713.00 Net Income $5,171.00 $4,909.00 $5,184.00 ROS 0.11 0.09 0.09 C L Revenue $17,277.00 $16,034.00 $15,195.00 Net Income $2,180.00 $1,384.00 $2,441.00 ROS 0.12 0.08 0.16 Consequently, the company undertook a massive transformation in its strategic structure by decreasing its brand portfolio by 100 products to increase efficiency. Amidst all these, P&G investors are losing patience and calling for a strategic restructuring to stimulate sales growth. The five forces analysis by Michael Porter Porter’s is a tool for evaluating, assessing the competitive advantage and business situation of a corporate entity. Fundamentally, five forces analysis identifies the business strengths of an organization, pointing weaknesses and avoiding mistakes. Components of the five forces analysis include the supplier power, buyer power, competitive rivalry, threat of substitution, and the threat of new entry. In this case, the most important forces that can potentially impact P&G’s profitability growth is competitive rivalry and the threat of new entrants in the market. The force with the strongest intensity is a

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