Case Study Of P & G's Internationalization Strategy

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Throughout the 20th century, P&G expanded overseas, both in terms of manufacturing and product sales. Nowadays, Procter & Gamble is present in more than 180 countries. In 1915, P&G began to build factories outside of the United States in order to be able to sustain the increasing demand for its products. The first foreign plant was built in Canada. P&G’s internationalization process really began back in 1930, with the acquisition of its first overseas subsidiary, Thomas Hedley Co., a local British manufacturer of soap and candles. Following the acquisition, P&G moved its headquarters to the UK. The headquarters were only recently moved back to Cincinnati, Ohio, in the US, where the company was founded. In 1935, P&G expanded its international presence with the acquisition of the Philippine Manufacturing Company. P&G didn’t undertake other acquisitions outside of the US until the end of the Second World War. P&G’s reluctance to invest in European markets was because of the high tariffs and political instability that reigned in Europe at that time. The company was also reluctant to engage solid competitors such as Unilever and Henkel & Cie in foreign markets.…show more content…
However, P&G quickly understood that there were only limited chances to make important acquisitions in its domestic market in the US. Hence, Europe became one of the most important target markets for P&G. From then onwards, P&G prepared its entry in European markets by acquiring companies that had a strong presence in European markets and building plants there. The company opened a factory in Manchester in 1933 and built a plant in London five years

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