Procter and Gamble Case analysis

e. the era of American Civil War, the company won various contracts such as supplying soap and candles to the Union Army. As the demand for their products began to skyrocket, they began building factories in different locations in the U. S as well as diversification of its products. It is in 1930 that the company entered into other countries making it an international corporation (Amabile & Whitney, 1997). Taylor being the current president since the 1st of November 2015. Another exceptional fact about this company is that it not only produced but also sponsored serial dramas ever to be listened to in the radios in the 1930s and also television series in the 1950s. These series ended up being commonly referred to as soap operas because the company widely produced detergents.

The company changed its logo and name from Procter & Gamble Productions (PGP) to Procter & Gamble Entertainment (PGE). This was to send out information to the public that it involves itself in multiple entertainment platforms. As discussed below it has a number of competitors. The main competitors are Avon, Ecolab, CCA industries, Estee Lauder, Elizabeth Arden, Unilever Church and Dwight co. , Colgate-Palmolive, Bic, United-Guardian, and Ecolab. For Procter & Gamble to be competitive in the market and get benefits, it is necessary to look at competitive rivalry (Thompson, 2018). There are very many firms whose operations are based on consumer goods and this imposes a strong force to this company because for it to succeed it must compete against all these firms. New entrants in the market greatly affect the operations of the existing firms either negatively or positively.

For the case of Procter & Gamble, this is a moderate force. This is because the switching costs are low, capital costs are moderate and moderate economies of scale. For instance, it is difficult for a new entrant to have the benefits of global presence that P&G has. Five forces analysis of P & G Type of force Status Competitive rivalry Strong force Bargaining power of buyers Weak force Bargaining power of buyers Weak force Threat of substitutes Weak force Threat of new entrants Moderate force P & G has remained significant over the years because it is able to maintain a competitive advantage over its competitors (Thompson, 2018). Achieving Competitive Advantage For P & G to achieve a competitive advantage; it has increased its profit margin by using its financial ability to buy off other companies, it keeps inventing new products while at the same time improving the existing ones such that those of their competitors can't match them in terms of quality and thus has helped to enhance brand loyalty and also produces products whose use cut across the entire population (Thompson, 2018).

This has increased its market size because they can sell to anyone. Furthermore, its products are distributed globally in that they sell in areas where other companies do not. The company thus makes profits even when the economy is in recession and thus it has achieved a stable competitive advantage. Efficient marketing and distribution systems which serve to acquire more customers have also helped this company achieve a competitive advantage. There is also need to enlarge its distribution channel as this will deal with potential new entrants. From the above case study I learn that for companies to maintain their global dominance, they need to manage the effects of external factors in the industry which can be identified by the use of the Five Forces Analysis.