Swot Analysis of P&G

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SWOT ANALYSIS OF P and G

P and G is one of the largest consumer goods company in the world. It markets 300+ brands in more than 180 countries. P and G is engaged in diverse products like beauty, health, fabric, snacks and many more. P and G’s leading market position with its strong brand portfolio provides it with a significant competitive advantage. But there are lot of external factors like economic slowdown, environmental factors, etc which pose a threat to P and G’s progress. Internal factors also have a large impact on the company’s growth. Thus it makes necessary for SWOT analysis in order to develop further strategies for P and G. Strengths

Research and development :
P and G has strong R and D capabilities. P &G is ranked as one of the top-20 R&D investors among US-based companies. It has over 20 technical centres on 4 continents and more than 25000 active patents for its products. The important factors in P and G’s innovation process are its practice of consumer demand research and its “Connect and Develop” R and D structure. The base for P and G’s progress in R and D is its “Connect and Develop” strategy in which P and G interacts with customers to understand their needs and desires for household and personal products. P&G's research and development capabilities have enabled it to secure about 27,000 patents globally and allows it to renew its product line at regular intervals, which boosts customer loyalty and revenue growth. Strong brand name:

P and G is one of the largest consumers’ goods company in the world. It markets 300+ products in more than 180 countries. According to 2011 Annual Report, 26 of P&G's brands have more than a billion dollars in net annual sales. With a large number of leading brands like Oral-B ( a brand of toothbrush, and oral care products), and many other, P and G has been successful in influencing the lifestyle of majority population. Global Leadership with a Social Conscience:

P and G has been a global leader just not limiting itself only to consumer goods but it also focuses on sustainability. Below are the few steps carried out by P and G to ensure a better quality of life to everyone and for generations to come. •Reduced cavities by 60% in Poland and Russia through efforts by Crest brand •Saving one life per hour through the Children’s Safe Drinking Water Program •Giving 100,000 children an education in India

Building and remodeling schools: 300+ in Mexico, 100+ in China, 50 in Egypt, 23 in Pakistan and other countries •Teaching personal health habits to 80 million children in China •Giving over $100 million each of the last two years to philanthropic projects •Donating 8.2 million meals to children in need

Large distribution network and strong infrastructure:
P and G has strong distribution infrastructure consisting of consumer channel, business to business channels and multiple marketing channels. P and G’s extensive experience in marketing in different market segments and its integration with some of the largest retailers in United States of America as well as world around has contributed to strong distribution infrastructure. This strong infrastructure helps P and G to markets its products faster and more efficiently.. Global operations:

P and G has global operations and is able to derive substantial economies in finance, logistics, marketing, research and other functions. The company’s huge buying power enables it to leverage through global procurement and gives significant competitive advantage against the smaller, unorganized players in the market. Strong performance in core business:

Being the world’s largest producer of household and personal products by revenue, 80% of its sales are contributed by fabrics, home products, etc. Thus company’s core business has contributed above industry average revenue to company’s growth rate. Weaknesses:

Quality control:
P and G has quality control problems with some of its products. The large scale operation...
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