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Procter & Gamble Porter Five Forces Analysis

P&G is a global consumer goods company founded in 1837 that specializes in personal care and hygiene products. It has grown into the world's largest consumer goods company through leadership, innovation, and citizenship. P&G's vision is to be the best consumer products company in the world, and its mission is to provide superior quality products that improve lives now and for future generations. P&G analyzes its position using Porter's Five Forces model, considering factors like competitors, substitutes, supplier and customer bargaining power, and new entrants.

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Sailesh Rout
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0% found this document useful (0 votes)
55 views11 pages

Procter & Gamble Porter Five Forces Analysis

P&G is a global consumer goods company founded in 1837 that specializes in personal care and hygiene products. It has grown into the world's largest consumer goods company through leadership, innovation, and citizenship. P&G's vision is to be the best consumer products company in the world, and its mission is to provide superior quality products that improve lives now and for future generations. P&G analyzes its position using Porter's Five Forces model, considering factors like competitors, substitutes, supplier and customer bargaining power, and new entrants.

Uploaded by

Sailesh Rout
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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“HIGHEST GRADE, HONEST

WEIGHT”.
Name Ansuman Patra
Reg no 200409120059
P&G
■ Procter & Gamble is an American consumer goods giant specializing
in a wide range of personal care and hygiene products. P&G was
founded in 1837 by brothers-in-law William Procter, a candlemaker,
and James Gamble, a soapmaker.
■ P&G was founded over 180 years ago as a simple soap and candle
company. Today, we’re the world’s largest consumer goods company and
home to iconic, trusted brands that make life a little bit easier in small
but meaningful ways. We’ve spanned three centuries thanks to three
simple ideas: leadership, innovation and citizenship.
■ The insight, innovation and passion of talented teams has helped us
grow into a global company that is governed responsibly and ethically,
that is open and transparent, and that supports good causes and
protects the environment. This is a place where you can be proud to
work and do something that matters
Vision
To be the best consumer products and services company in
the world.”

Mission
To provide branded products and services of
superior quality and value that improve the
lives of the world’s consumers, now and for
generations to come.
Objective

■ We will provide branded products and services of superior quality and value that
improve the lives of the world’s consumers, now and for generations to come. As a
result, consumers will reward us with leadership sales, profit and value creation,
allowing our people, our shareholders and the communities in which we live and
work to prosper
Porter 5 forces model of P and G

■ Five Forces analysis of Procter and Gamble (P&G) helps to analyze its current
position in the market based on multiple internal and external factors like
competitors, customers, suppliers (vendors and partners), financial strength, future
scope & alternate solutions.
■ Procter and Gamble (P&G) Porter Five Forces Analysis:
Threat of New Entrants.
Threat of Substitutes.
Bargaining Power of Customers.
Bargaining Power of Suppliers.
Competitive Rivalry
Rivalry among competitors of p and g

Attractiveness

low high

1 2 3 4 5 Remarks

No. of competitors * the no of competitors are very high.

Industry growth * P & G is growing higher each and every year.

Fixed cost * fixed cost are medium every year which lead to growth of the company.

Differentiation * product differentiation has very low

the switching cost is strong force which leads to gain competitors and
Switching Costs * customers
Threat of new entrants
Attractiveness
low high
1 2 3 4 5 Remarks
. As one of the biggest firms in the market, the company benefits from high process
efficiencies and high cost effectiveness based on its organizational size.
Economies of scale *
Differentiation involves developing the uniqueness of the business and its products
to attract target customers.
product differentiation *

Brand Identity . * it focuses on unique brand identity and attract more customers.

P & G offers ease of access to its products, and its channel distribution is in sync
Access to Channel of with its other marketing strategies.
Distribution *

capital requirement is moderately high which leads to making multiple product


Capital requirement * for new entrant to come to business.
use AI for quality control on the production line.
Access To Technology *
Access to Raw
Materials * access to raw materials are less.
P & G operate globally and has to comply with special laws and regulations for the
Import and export of product and technical data
Government Protection *
Threat of substitute products
Attractiveness

low high

1 2 3 4 5 Remarks

the availability of substitutes for P & G are very weak and less which
Availability of Substitutes * focuses of customer experience

Profitability of the producers of substitute


products * there are high substitutes available which produced high profitability
Bargaining power of buyers
Attractiveness R e marks

low high
1 2 3 4 5

No . of Buyers * the customers have a w ide variety to select from

Availability of
Substitutes * the buyers are able to find the alternatives .

B uyers Threat For there is a significant threat to the buyers to integrate backwards. this makes the
B a ckward Integration * bargaining threat of buyers a stronger force in the industry.

I ndustry’s Threat of
F orward Integration * the buyers do provide a threat for forward integration into the industry.
bargaining power of supplier
Attractiveness R e marks

low high
1 2 3 4 5

No . of Buyers * The company also awards the top-performing business partners too.

the suppliers have verity product with in the industry. This mans there is a lot of
Availability of Substitutes * substitutes so the bargaining power of the suppliers is week within the industry.

suppliers Threat For Backward the suppliers provide a forward integration into the industry this make the bargaining
I ntegration * power of the suppliers a strong force within the industry.

I ndustry’s Threat of Forward The following external factors are the determinants of the weak intensity of the
I ntegration * bargaining power of suppliers on Procter & Gamble
Thank You

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