Procter & Gamble Resources, Capabilities and Competitive Advantage

Topics: Strategic management, Porter generic strategies, Porter five forces analysis, Management, Brand management / Pages: 9 (2473 words) / Published: Jul 2nd, 2014
Procter & Gamble Co. (P&G)
P&G – Procter & Gamble is a consumer product company founded and headquartered at Cincinnati, Ohio in 1837 by Mr. William Procter and Mr. James Gamble. It is now led by Mr. Alan.G.Lafley whom rejoins the company in 2010.
P&G success was contributed to the heart of its business model – Innovation; and that is not just for newly invented product or service, it was for the goal of recreating needs for the improvement of consumers’ living. And it is a very long culture started where the roots started from the founders; whom are soap and candles makers. The first innovative product – Ivory; started in 1879, by James Norris Gamble who is the son of the founder and a trained chemist. Ivory at then was an inexpensive white soap equal to high-quality, imported Castile soap. It was introduced nationwide through a weekly newspaper.
Today, P&G has its presence across 180 countries and a team of 121,000 employees. Its business operations spanned across various segments like Beauty, Grooming, Health Care, Fabric Care & Home Care and Baby Care & Family Care; it is the house to many of the world leading brands like Head & Shoulder, Gillette, Oral B, Fabrics, Pampers and many more. Touching more than 4 billion consumers worldwide every day, the company sales volume as of fiscal year ending June 30, 2013 was more than 80 billion in sales.
The Strategy – Unique Value
According to Michael Porter, He argued that organizations that focus solely on operation effectiveness is not enough, they will only be successful if they are able to provide a unique value that is sustainable for a long term. Organizations competing in operation effectiveness will only gauge their performance by benchmarking what others are doing; ultimately providing the same value throughout, which is of no value to the customer. Therefore, for an organization to be able to sustain for long term, an organization would require a competitive strategy by performing a different set of



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