P&G Strength, Weaknesses, Opportunities, and Threats (SWOT) Analysis One strategic management tool that P&G uses

to stay ahead of its competition is the effective and efficient utilization of SWOT analysis. This involves specifying the goals and objectives of the business as well as identifying the internal and external factors that are favorable and unfavorable in achieving the goals and objectives. These analyses are based on the company¶s case study as well as the industry trend. Because of the segmentation and size of the company, P&G faces a lot of domestic and foreign regulatory threats and distribution systems where foreign competition tries to imitate P&G¶s brand names for the seek of misleading consumers for self profit. This threat of foreign brand imitation is due to weak foreign business laws and regulations. P&G¶s strength includes: strong financial position both in the domestic and foreign markets. The company was the 25th largest U. S company by revenue in the early part of 2007, and the 18th largest by profit. This is why the company is one of the most admired companies in the United States. Also, the company has the ability and capability to push innovation to commercialization faster than any other competitor in the industry; even though it faces competition from Johnson & Johnson, Kimberly Clark, and Unilever, it¶s been able to move products and services from the innovation phrase to commercialization faster; P&G has effective and efficient manufacturing processes which include total quality management as well as just in time inventory systems; this has enabled the company to save on inventory costs; and this cost saving is generously passed on to consumers in a form of high quality and lower prices of goods and services. Another unique strength of P&G is its pool of skilled labor. In a Congressional briefing luncheon hosted by the Athena Alliance and the Congressional Economic Leadership Institute held at the Rayburn House Office Building in Washington DC in June 2006; P&G¶s Corporate Director of Innovation Capability mentioned, ³P&G has 9,000 R&D associates including 1,100 PhDs.´ This clearly explains the tremendous success of the company. The company¶s pool of highly skilled employees in the industry has given it the edge to lead in the innovation of over 40 product categories for which it holds more than 27,000 patents. The Director of Corporate Innovation Capability added ³Our research and development organization is fluent in a broad range of competencies including chemistry, engineering, materials science, biological sciences, medicine, and mathematics.´ Also, P&G has a track record of producing high quality products which is very difficult to match or beat. Consumers want high quality products at reasonable and affordable prices, and this is the main reason why P&G is the driver of the consumer product industry worldwide. P&G¶s innovative products and services have helped consumers save a lot of money on dental hygiene and on other health care products. Just about everyone wants a bright healthy smile, but not everyone can spend $600 for the dental visits needed to achieve whiter teeth. And unlike the stereotypical eureka moment, a lone P&G scientist didn¶t accidentally stumble onto the Crest White Strips formula late one night at the lab. What we did do was work backward from the consumer need for a convenient, affordable solution to whiter teeth. We brought together a diverse team of experts across our

. P&G¶s opportunities include: Well defined market niche. they should be able to repatriate their profits without much restriction. Investors do not like uncertainty. This makes collaboration with headquarters a little difficult because of their inexperience in the global business arena. dental experts from our oral care organization and bleaching experts from our laundry business. difficulty of entry. and unhealthy business environment. (P&G Corporate Director of Innovation Capability). Threats include: New entry into the household product industry. Another area of weakness is the employment of foreign based local management who doesn¶t have any international business experience. Trade barriers historically has been known to be one of the biggest threats for most multinational businesses because of hostile takeovers by some foreign governments. They want to ensure that there is democracy and stable government in whatever country they invest and most importantly. And through solution focused R&D. corruption among government officials and bribery. The removal of trade barriers in some foreign countries has enabled the company to operate competitively without much government intervention. adhesive group. we delivered Crest Whitestrips with a level of tooth whitening that surpasses anything else available in the retail market. just in time manufacturing technology. This has been a threat to most businesses as well as P&G. wide range of demography.technology centers who were at the leading edge of their fields from our flexible films group. and consumers pay only $35. unfavorable business laws and political instability. increased trade barriers in some developing nations. and the removal of trade barriers in some foreign countries. use of substitute products. Some weaknesses of P&G include: Lack of effective distribution system in some segment as well as poor location in some foreign countries and high cost of inputs.

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