P&G's mission is to provide superior quality branded products and services that improve lives now and for future generations. Their vision is to be recognized as the best consumer products company worldwide. P&G faces threats from new entrants, substitute products, and power of buyers like Walmart. However, they have significant market share, suppliers need P&G, and they differentiate through innovation. P&G operates through global business units, market development organizations, and global business services to build competitive advantage across functions like R&D, marketing, and human resources.
4. Mission
We will provide branded products and services of
superior quality and value that improve the lives of the
world’s customers, now and generations to come.
Vision
Be and be recognized as the best consumer products and
services in the world
10.
Threat of New Entrants
P&G possess a significant amount of market share around
the world
To compete P&G, A competitor must have a large sums of
capital for heavy marketing and R&D
Firms that specialize in nice market could possibly become a
threat to P&G corresponding business segment
Power of Buyers
P&G is heavily dependent on wall mart and its affiliates for
generating a major part of its revenue
High dependence upon Wal-Mart could reduces the
bargaining power of P&G
11.
Power of Suppliers
Supplier of P&G need key customer for profitable revenue
generation and will have little bargaining power
Rising interest rate and declining availability of credit
ultimately should it self P&G must not affect P&G’s
relationship with its suppliers
Threat of Substitutes
There is substantial no of substitutes for all of P&G’s
product offerings, creating an intense competitive
environment
In order to differentiate it self P&G must continue to
provide new and innovative products to the customer
12.
Intensity Of Rivalry
P&G has several strong competitors in different
markets like AMWAY corporation, Colgate-Palmolive
company, Johnson & Johnson, Revlon& HUL
Switching cost in this industry are quite low
13.
Diversification strategy is used to increase the firm’s
value by improving its overall performance
Firms can create operational relatedness by sharing
either a primary activity or a support activity
14.
Global Business Units (GBUs) focus on consumers, brands
and competitors in India. They are responsible for the
innovation profitability from their businesses.
Market Development Organizations (MDOs) are charged
with knowing consumers and retailers in each market .
Global Business Services (GBS) utilizes P&G talent and
expert partners to provide best-in-class business support
services at the lowest costs.
Lean Corporate Functions ensure ongoing functional
innovation and capability improvement.
15.
Business Level
• Efforts to build competitive advantage
• Collaborative partnership and strategic alliance
• Distribution channel
Functional Level Strategy
o Human Resources Strategy
o R&D Technology Strategy
o Marketing and Sales Strategy
16.
Analysis of Primary activity
P&G developed extensile economies from its scale of
operations in finance ,logistics
,marketing, Research, new product
development, technology innovation and other
function
Inbound and Outbound Logistics
P&G’s goal has been to create adaptive, reactive
supply networks that will link together sales and
supply processes, inside and outside the
organization, to improve product availability.
17.
Operations
P&G organized into 3 business units
Beauty
Health and well-being
Household care
The operation group consist of market development
organization and global business services
18.
Sales and Marketing
• The company markets more then 300 brands over 180
countries
• 23 of these brands are categorized by P&G as billion dollar
brands.
• Majority of sales now coming from promotional events, pull
systems of efficient distributors of consumer and industrial
product
Services
P&G emphasis on its principal business call of providing its
customers with right products at right place all the time
19.
Analysis and Support Activity
Firm Infrastructure :
Integrity
Passion for Winning
Leadership
Trust
Ownership
20.
Product R&D
o P&G has strong commitment to find the best
researchers, and retain them with cultural design to reward
success, stimulate learning , challenges compliancy and
nurture innovation.
Human resources Strategy
o Hire the best
o Challenges of P&G people from day1
o Business and functional leaders activity recruiters, Teach
and Coach
o Plan careers
o Never Stop Learning