The Case Of Procter & Gamble

1070 Words5 Pages
THE ISSUES OF THE CASE

In 1990, Procter & Gamble ( P & G) faced some difficulties in selling their products globally. This is due the inability to produce new products and response to the consumer’s changing needs. The company’s products in market sold less than expected sales and getting reduced for several years. Most of the products are unnoticed by customers. The company practice dictated a multibrand strategy. P & G offer a new brand for every product in each category. This method looks like working well in laundry detergents and other categories but not at all. Moreover, new designation of product would bring higher operating costs and need more investment in order to develop new products. So, the company just retain the old product because of uncertainty about users and premium priced line of product. For example, Pampers just retain in the market with old designation for over two decades. Unfortunately, P & G calculation totally out of box which bring adverse effect to
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The ‘connect and develop’ strategy could help P&G systematically search for new ideas which company can use from around the world. It is mainly use to connect between internal and external resources of the company. The strategy also allows P & G to do innovation by transferring data between innovators across the globe to make new valuable connection and collaborate with co-workers in a variety of specialized fields. Moreover, The ‘connect and develop’ strategy also easy way to communicate with external business partners. Proctor and Gamble’s externally focused open networks supplement its internally focused proprietary R & D networks. These open networks are primarily focused on technological developments that can contribute to product innovations. For example, Technology Entrepreneurs are scientists and specialists in technology field which is crucial for P & G global

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