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P & G Competitive Strategy

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Global Competition has driven companies to change their business strategies in a bid to achieve objectives. These strategies may entail major resource issues or the products to allocate key resources. Moreover, companies pursue either generic or competitive strategies. Generic strategies include growth, which is done through business expansion, development of new products, or acquisition of other businesses. Other generic strategies are, globalization and concentration on what a company is best at.
Conversely, competitive strategies involve outwitting rivals through product differentiation and pricing strategies. Differentiation entails making the products different from those of the competitors either by packaging, customer care, labelling, …show more content…

Over the years, P&G has been involved in developing new products by sourcing innovations from its supply base and value network. Such a strategy has been possible due to change of approach from the physical R&D labs into using the world as their lab where they could create mechanisms to create ideas, innovations and new products anywhere.
Moreover, the company has a website to connect innovators with P&G’s needs, where the company stakeholders submit their ideas to the company for breakthrough innovations. Through creativity, the company has used supply chains to reach their consumers in a timely and efficient manner as well as achieve a competitive advantage. The company has also embraced a prospector culture and as thus engages in differentiation of its products in a creative and flexible working regime.
Since P&G is a mature company, it has set its financial objectives to achieving a growth rate of 4 to 6 percent per annum. This has been achieved particularly due to the company’s formidable R&D resources globally. Moreover, the company has also prioritized in investing in its vast and most profitable markets in the emerging markets, such as China and Brazil. P&G has a financial objective to deliver improved results by continuing to innovate and improve productivity as well as save cost. The company is in the process of achieving this as it has set an objective …show more content…

The core earnings per share is approximately mid-to high single digit growth. The company met its business and financial objectives for the 2014 fiscal year as organic sales grew by 3 percent, core earnings per share increased by 5 percent while $10.1 billion free cash flow was made from 86 percent free cash flow productivity. Moreover, $12.9 billion was distributed to shareholders in dividends and share repurchase.
P&G has established a competitive advantage with the strategic elements of organizational culture, human resource practices, and cost. This is evident in the “Connect and Develop” strategy which has enabled employees to develop new skills thus reinforcing the employees’ work. Cost cutting has also ensured that the company stays ahead in competition through increased profitability. For the connect and develop strategy to succeed, P&G had to foster an internal culture change as well as developing systems for making connections through generation of ideas by the

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