Procter & Gamble Case Study

Procter & Gamble
Name
Course
Institution
Date
Procter & Gamble
Introduction
Businesses operating in the contemporary world are faced with so many challenges the major one being the dynamism of such environment. It is important to note that since the business environment is full of dynamism there is serious need to keep on changing and re-evaluating strategies employed in meeting the objectives, aims, and goals set by the management and owners of a given firm. One reason making business environment to be dynamic is free entry and exit into various markets, which give rise to increased level of competition. Increasing competition has the potential of making a firm develop competitive advantage over other firms in order to survive.
P&G is a company that has existed for about 172 years and some of the strategies employed at the inception are the same that are being used. This has made P&G Company to perform poorly in its market thus raising so much concern not only to the management but also the other stakeholders. In this paper, an analysis of P&G Company’s problem indicates measures needed for enhancing performance and productivity.
P&G Company’s Analysis
Large and old companies like P&G Company always enjoy economies of scale in as far as market of their product is concerned. P&G Company having existed for long, grown, and expanded led to increased competitive advantage due to full establishment in the market. According to Porter’s model of strategic management one of the factors that a new entrant into a market considers is the existing firms and how they have attained their market share (Hartley, 2010). P&G Company had gained a bigger market share having understood demands and needs of the customers. It is therefore true to conclude that the big size of P&G Company made it have competitive advantage over its rivals.
One of the strategies P&G Company used to capture the market and increase competitive advantage was the promotion from within. Promoting products or firms from within is a cheaper way and the most effective in ensuring that customers are fully understood together with their needs and demands. An employee would therefore wish to work in a firm that promotes from within so that there is reduction in the costs with very few tasks to accomplish as promoting outside the firm. In any case, promoting from within increases the market share of a company like P&G (Hartley, 2010). Market share was for P&G Company very important as it enabled the company to meet set goals in terms of profitability. Importance of market share can be viewed in three perspectives; volume, value, and vector. Through market share volume P&G Company was...