- March 12, 2013
- Posted by: essay
- Category: Term paper writing
Proctor and Gamble (P&G) is one of the most successful companies operating in the industry but, today, the company faces considerable problems provoked by the recent economic recession. At this point, it is worth mentioning the fact that P&G has to maintain its competitive position, in spite of the economic recession, decreasing buying power of customers, and growing competition from the part of private labels. Nevertheless, P&G still has a strong competitive position in the market and has extensive experience of operation in the industry. In fact, the company has to develop new approaches to business to enhance its position in the market and to secure its competitive position in the industry. In actuality, the company has a substantial potential to keep growing and to maintain its competitive position, although the company has to overcome its current problems and growing competition.
On analyzing the business strategy used by P&G, it is worth mentioning the fact that the company has always been concerned with its consumers and their needs. The company attempted to create products that meet needs and wants of customers and satisfy them. In such a way, the company attracted customers, who grew conscious of the fact that, while buying products of P&G, they could count for products of a high quality, although they had and still have to pay the high price for such products. In such a way, the company attracts customers and provides customers with products of the high quality, although customers have to pay the high price for these products. Therefore, consumers are the primary concern of P&G.
At the same time, the company pays a lot of attention to innovations, which P&G views as the strategic direction in the development of the company. To put it more precisely, the company introduces innovations, which always comprised an integral part of the business development of P&G. The company introduced innovations to provide customers with new products of the high quality. Due to innovations, P&G has managed to take the lead in the industry and, today, the company holds a leading position in the industry. In such a situation, the company can improve its position after the economic recession due to innovations because innovations can attract customers to new products of the company and, thus, allow the company to improve its financial position as well as to enhance its competitive position in the market. In fact, the introduction of innovations contributes to the improvement of the competitive position because P&G takes advantage over its rivals because rivals do not have products introduced by P&G. In fact, competitors, especially private labels, mainly follow the lead of P&G, whereas P&G sets the pace in the industry introducing its products.
At this point, it is worth mentioning the fact that branding is another important part of the business strategy of P&G. The company pays a lot of attention to the creation of the positive public image. The recognition of P&G’s brand at the international level is one of the major successes of the company, which contributes to the improvement of the competitive position of P&G in the market. In fact, the company takes the lead in the market due to its brand because consumers are confident in the high quality of products sold under P&G’s brand, whereas they are uncertain in the quality of products manufactured by private brands and other rivals of P&G in the market. In this regard, the management of the company should carry on its strategy of the improvement of its brand and its public image.
On the other hand, P&G faces the problem of failure of some of its products. At the same time, it is worth mentioning the fact that product failures are the norm in the industry. In this regard, the position of P&G is not worse compared to its rivals, which have reached only 15-20% level of products’ success, whereas P&G has reached the 50% level. As a result, the company is still in an advantageous competitive position in the market.