Business Strategy Case Study: Procter And Gamble
Procter & Gamble is a Multinational Company. It was founded in 1837 by William Procter and James Gamble. P&G operates in around 80 countries and well-known in more than 180 countries. There are almost 5 billion people served by P&G around the world. (P&G, 2017) The global net sales in 2015 were about $ 76.3 billion. The geographic region of Asia Pacific-8%, Latin America-10%, India, Middle East and Africa (IMEA)-8%, Greater China-8%, Europe-26% and North America-40%. There are 110,000 workers in P&G. (Procter and Gamble, 2015) Q1 Recently, P&G is using the Multidivisional Structure for their company. Besides, it is a matrix structure. A matrix is an organizational structure that shares power between two or more dimensions and involve …show more content…
In differentiation, it is unique in its industry, which means a lot on innovation. Innovation helps P&G’s company to grow and expand. P&G’s chairman, president and CEO Bob McDonald said that: “We know from our history that promotions may win quarters, innovation wins decades.” P&G spends around $2 billion every year on R&D, 50% more than its competitors and even more than most of the competitors combined. Not only that, it conducts 20,000 studies includes more than 5 million customers and consumers in almost 100 countries. P&G researchers are set in somewhere near the store to observe customers and consumers what they choose and buy. (Brown, …show more content…
First is Transformational-Sustaining. It define existing categories. Typically, they will bring order-of-magnitude fundamental changes and improvements to a business. It also show to breakthroughs in market share, customer or consumer acceptance and level of profits. In 2009, P&G announced the wrinkle-reducing cream Olay Pro-X and launch a $40-a-bottle product in the depths of a recession. P&G lead because it believe the product a transformational-sustaining innovation will prove to be effective and superior to the company’s other anti-aging offerings. In US food retailers and drugstores alone, the cream and other related products got $50 million in first year sales. (Brown,
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