Procter And Gamble Case Analysis

1108 Words5 Pages
Alan G Lafley, the former CEO of Procter & Gamble, once said “Let’s execute along this strategy, but know that we’ll probably get some of this wrong, so be open to changing it (AZQuotes.com). Procter and Gamble has undergone many strategic changes in the last 15 years which have had a profound impact on the company’s profits and market share. The strategic changes that Procter & Gamble has undergone have been both positive and negative. While it is important to document the financial impact of the changes under Alan Lafley, it is also important to track the changes and growth under the current CEO David S. Taylor, while also showing Procter & Gamble’s competitive advantage. Procter & Gamble is a leader in the consumer products industry and carries many different product lines which include beauty products, health products, baby care products, and grooming products. Procter and Gamble carries owns 66 different brands such as Oral-B, Bounty, Gillette, Braun, Tide, and Pampers. Procter and Gamble has undergone massive changes in the last 15 years. In the 2000’s. Procter and Gamble began aggressively buying other brands to expand their brand portfolio to increase revenues. In 2005 Procter and Gamble purchased Gillette for $57 billion (When Will P&G Play to Win Again, pg. 449). This was done with Alan Lafley’s guidance who was the CEO at the time. This aggressive acquisition strategy made increased revenues hard to achieve. With the rise of e-commerce, consumers began purchasing razors online which has hurt Procter and Gamble’s profits. During the 2000’s Procter & Gamble did not focus enough on foreign markets and focused mostly on the U.S market. While focusing on the U.S. market Procter & Gamble added new features to products lik... ... middle of paper ... ...echnological factors also have a large impact on the consumer products industry. One technological innovation that has had a massive impact on Procter & Gamble and the consumer products industry is e-commerce. E-commerce is rapidly growing and brands that don’t sell online will have a tough time competing in the industry. With e-commerce, consumers can shop around online to get the best deal on a product. This has had an impact on Procter & Gamble. Since Procter & Gamble was charging a premium price for their products, consumers bought cheaper alternatives to these they could get online. E-commerce can pose a threat to companies if they are slow to adapt but it also provides an opportunity for companies as well. Dollar Shave Club took advantage of this opportunity by selling low cost subscriptions to consumers where they would receive shaving products for subscribing.
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