Procter & Gamble Case Study

873 Words4 Pages
Discuss around P&G Company Founded in the 19 century, Procter & Gamble has been considered has the world’s biggest company in consumers good. Nowadays this company owns more than three hundred brands in more than one hundred and sixty countries which mean that they had build a strong long term strategy. But how that kind of leader can get into trouble, why do they need at a precise period to change their strategy which has succeeded during all these decades, what happen? I will go first by explaining what was their old strategy then, why they had to change and how they make that happen. The old strategy of Procter & Gamble was based on several facts, let me explain. The first one is the most important, the environment, at the beginning it was easier for huge groups like P&G to make international business and expend its brands all around the world. Even if it was quite expensive to reach another country at this point in time because of all the barriers which disable company to send their product abroad. Those barriers represent the economy policy at that time, extremely strict, everybody want to make business with others but without making any efforts on transportation cost and taxes in all cross border trade. The only option was to settle new factories in the country where you were likely to create added values and gain rapidly market shares. As time goes by P&G was making a lot of money and huge benefits and they kept going on expending and developing their brands all around the world. However, they didn’t expect that those barriers which “help” them to enlarge the company could fall and transform forever the way to do business in the world. Unfortunately it happens; those walls which almost avoid the right to do properly international business fell in the 80’s. After the huge recession in the 70’s trade of goods tend to slow down and decrease, to avoid that
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