P&G Competition

Topics: Competition, Personal care, Cosmetics Pages: 6 (2194 words) Published: December 5, 2009
Because of the vastness of the variety of products produced by Procter and Gamble, they have several different competitors, although of course these competitors do not compete in all the same industries. The industries that P&G compete in include food, personal care, business services, commercial cleaning and facilities management services, consumer products manufacturers, and cleaning products. For example, P&G makes Pringles, whose competitors are basically any chip products, including the local Egyptian company Chipsy, as well as any other chips producers. Although Chipsy only makes different variations of chips, while P&G makes several different products, they are direct competitors. This gives Chipsy a direct advantage, as they are able to put all their efforts and focus into the production of just one product, while P&G spreads their resources and produces many different and extremely unrelated products. Chipsy is just a simple example of course, as Pringles is not even P&Gs main focus, however it expresses the point of how some competitors could be putting all their focus and efforts on producing just one product and trying to perfect it, while P&G produces so many different products, and produces them all without compromising the quality of one for the other, as all P&G products are definitely excellent quality. However there are other competitors, some who do compete in several different industries simultaneously as does P&G. An example of this is Unilever, who competes in many different products, including hygiene products, self care, and others. Of course being a multinational corporation means that the company will have competitors both locally, as well as all around the world. In addition there are local market competitors, who produce their products locally, and compete only for local markets, while some are other multinational companies competing for local market share. In Egypt, the main competitors are L’Oreal, Kimberly Clark, Henkel, Johnson and Johnson, which are all multinational competitors, as well as the local competitors sparkle and Oxi, however of course many of its competitors compete in other countries, but do not necessarily compete in Egypt. Procter and gamble has the largest variety of products in the household and personal care industry with twenty-four different billion-dollar brands, with another eighteen products with sales between 500 million to 1 billion dollars. P&G generates revenues almost forty-three percent higher than even its closest competitor, Unilever, while also having a much higher operating income margin than any of their competitors. The company’s main advantage is its innovation and continuous creation of new products, while enhancing the older existing products. The company invests over two billion dollars each year in research and development expenses, which is nearly twice as much as the one point three billion Unilever, its biggest competitor invests each year. This two billion plus is actually near the same amount invested by all its other major competitors combined (global), excluding Unilever of course. This list includes Avon, Clorox Company, Colgate-Palmolive Company, Energizer Holdings, Henkel, Kimberly-Clark, L’Oreal, and Reckitt Benckisser. Clorox is one of the main competitors who produce household products, competing specifically in the household cleaning products. Although it is a main competitor, it is not a complete direct competitor. This is because P&G still competes in some products that Clorox does not produce, for example beauty products, which are one of the largest sectors P&G deals with. Kimberly-Clark competes in household products as well, but items different than those Clorox produces. Kimberly-Clark specializes more in tissues, paper towels, diapers and feminine products, all mainly categorized under paper or tissue products. The main products Kimberly-Clark produces include huggies diapers, Kotex feminine products, Scott Paper...
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