Proctor and Gamble Company is one of the leading players in the consumer goods industry. There are a lot of reasons that allow companies to attain the level of development and commercial success that has been witnessed in Proctor and Gamble. While there are a lot of environmental issues that affect the operations and consequent success of business organizations, it is necessary to point out that the largest success contributor is in the inherent abilities of the company. The manner in which the organization organizes its operations and leadership is critical to the success of the team (Kuratco et al, 2014). In that line, it is notable that the internal factors within Proctor and Gamble have contributed to the enormous levels of success that …show more content…
With this level of resources, Proctor and Gamble is in a position to invest in many projects to drive its agenda in the market. The availability of resources is one of the factors that determine the failure or success of institutions. Over the years, the company has expanded by leaps and bounds. As at this time, the products of Proctor and Gamble are present in over 180 countries. The availability of brands has made sure that the company has a huge customer base, thereby making sure that the products of the company perform favorably well in the market
Proctor and Gamble depend on the services of human labor to execute a broad range of duties. From production to marketing and distribution, the company relies heavily on the input of human labor to realize its objectives. Without the individuals, it would be practically impossible for Proctor and Gamble to achieve its aims
One of the weakest links of the enterprise is that most of the beauty and health line products are for women. Over the years, the company has invested in the production of beauty line products which satisfy the needs of women in the market. In this regard, the company has left men behind in the establishment of the outputs (Lafley & Charan,
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However, when looked at the angle of the retailers, it is apparent that the company has strong buyer power.
Supplier Power
There is a huge level of dependence between Proctor and Gamble and its suppliers. In order to improve its revenues, the company needs high quality raw materials for its production activities. The fact that the company has a wide network of suppliers presents it with an opportunity to improve its operations.
Threat of new entrants
Over the years, P&G has dominated the consumer goods industry in the world. However, in the recent past, there has been a notable increase in the number of investors in the industry. When these new competitors get into the market, they usually come with new technologies and that has allowed P& G to cede some market share.
The thereat of substitutes; the presence of a larger pool of substitutes to the products that the company produces is a source of threat to the operations of the company. In this regard, a number of consumers are presented with an array of options from which to choose their goods. That presents threat to the growth prospects of the company. There are a number of strategic options that the company can adopt in light of the facts obtained from the SWOT