BM1807

Names: GIRYL JEAN S. FERNANDEZ Section: BSBA-302B

Date: 02/03/22

ACTIVITY
Procter & Gamble (P&G)
Procter & Gamble (P&G) is the world’s largest consumer products company. Some of its category-
defining brands include Ivory soap, Tide detergent, Crest toothpaste, and Pampers diapers. Among its
many offerings, P&G has more than 20 consumer brands in its lineup that achieve over 66.8 billion
dollars or three (3) trillion pesos in 2018. P&G’s iconic brands are a result of a clearly formulated and
effectively implemented company strategy. The company pursues a strategy which attempts to create
higher perceived value for its customers than its competitors by delivering products with unique features
and attributes. Creating higher perceived value generally goes along with higher product costs due to
greater innovation efforts and promotion expenses, among other things. Successful differentiators are
able to command a premium price for their products, but they must also control their costs. In addition,
the company was able to achieve its market leader position through its top management commitment
that collaborates even with the lower-level managers in the company.

In recent years, however, P&G’s strategic position has weakened considerably and seems to be losing
rather than winning. P&G lost market share in key “product-country combinations,” including beauty in
the United States and oral care in China, amid an overall lackluster performance in many emerging
economies. As a consequence, profits have declined. P&G posted a sustained competitive advantage in
recent years; its stock market valuation has fallen, while its competitors Unilever, Colgate-Palmolive,
and Kimberly-Clark posted strong gains. Many wonders when P&G will play to win again.

Answer the following questions: (3 items x 10 points)

1. Which phase in the evolution of strategic management is present in the given case?
- In the given case the company pursues a strategy which attempts to create higher perceived
value for its customers than its competitors by delivering products with unique features and
attributes. Creating higher perceived value generally goes along with higher product costs due
to greater innovation efforts and promotion expenses, among other things.

2. Which type of strategy is being employed by P&G based on the given case study?
- The type of strategy being employed by P&G on the given case study is Business Strategy,
because they emphasizes the act of the company’s competitive position of product and
services, just the way they create higher perceived value for its customers than its
competitors by delivering products with unique features and attributes.

3. How will P&G regain its market position based on the concept of competitive advantage?
- Base on the concept of competitive advantage P&G regain its market position by using the
Benefit in competitive advantage because it pertains the value being offered by a product or
services to the market and also the company must identify the unspoken benefits of their
product or services so that the consumer will get hooked.
Rubric for grading:
CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting
8
details, and factual scenarios
Grammar Used correct grammar, punctuation,
1
spelling, and capitalization
Organization Expressed the points in clear and logical
1
of ideas arrangement of ideas in the paragraph
TOTAL 10

Reference:
Rothaermel, F. (2017). Strategic management (3rd ed.). New York, NY: McGraw-Hill Education.

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