Global Strategy:

1. Proctor and Gamble (PG) were pursing the International Strategy when it first entered foreign markets during the period up until the 1980s. PG developed new products and then transferred them wholesale to local markets 2. With this strategy you have implementation difficulties. Which include communication issues, trust issues, multiple roles, flexibility and cultural issues. 3. this strategy became less viable in the 1990s because Profit growth for PG was slowing. PGs costs were too high because of extensive duplication of manufacturing, marketing, and administrative facilities in different national locations. By the 1980s barriers to cross-boarder trade were being eliminated and fragmented markets were merging into larger regional and global markets. 4. Another reason this strategy became less viable was that the retailers that PG distributed it products were growing and becoming more global and requesting price discounts from PG. 5. So, What strategy does proctor and Gamble appear to be moving toward? PG is now using a Global Standardization Strategy. The benefits of using a Global Standardization Strategy is that PG can focus on increasing profitability and profit growth by gaining the cost reductions that come from different economies. Also, The production, marketing, and R&D activities are concentrated in a few locations. So now, Proctor and Gamble is not customizing their products and marketing strategy because it involves shorter production runs and the duplication of functions which raise costs. PG is marketing a standardized product world wide so they can benefit from economies of scale. 6. . the only potential risks associated with this strategy is That its.. inappropriate when demands for local responsiveness are high.