Categories: Strategy

Porter’s Five Forces Model of Procter & Gamble

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<h3><span style&equals;"font-size&colon; x-large&semi;"><strong>Bargain power of Consumers <&sol;strong><&sol;span><&sol;h3>&NewLine;<p align&equals;"justify">As with the bargaining power that is alarmed by the costumers&comma; Procter and Gamble can deal with it easily&period; The wide range of household products produced by company maintains the revenue of company even in time of recession&period; It is due to the type of various products and the demands of products in everyday life of consumers&comma; that this company plays an effective role in reducing rate of recession in economy of US&period;<&sol;p>&NewLine;<h3><span style&equals;"font-size&colon; x-large&semi;"><strong>Threat of Substitute Products <&sol;strong><&sol;span><&sol;h3>&NewLine;<p align&equals;"justify">Although Procter &amp&semi; Gamble has to deal with the presence of various substitutes in market nowadays&comma; however quality offered by P&amp&semi;G in its all products ensure the sustainability of company in market all over the world&period; In this regard company has adopted variety of collaboration strategies with their customers in order to develop better understanding of consumer demands and their response&period;<&sol;p>&NewLine;<p align&equals;"justify">These factors allow the industry to know about their buyers that are they happy with Procter and Gamble products or will choose some other brand over Procter and Gamble&period; The quality in Procter and Gamble products is always maintained and it ensures costumer trustworthiness and value for their money&period;<br &sol;>&NewLine;Threat of established rivals<&sol;p>&NewLine;<p align&equals;"justify">Procter and Gamble is one of most successful company offering quality products in present times&period; For more than half of a century this company is dominating the world of household products in different parts of world&period; This success of company is because of flexible attitude of company towards modifying user requirements and shifting market conditions&period; The successful marketing and business strategies of company ensures growth in revenue and constant reputation in world of business&period;<&sol;p>&NewLine;<p align&equals;"justify">It is a buyer oriented industry which is ready to know about the requirement of their costumers sooner than any other&period; P&amp&semi;G is now familiar with the business war going in the market but it has also formed a business map to compete&period; With Porter’s five forces model Procter and Gamble can successfully eradicate its rival companies and beat the competition anywhere in world&period;<&sol;p>&NewLine;<h3><span style&equals;"font-size&colon; x-large&semi;"><strong>Recommendation on the Basis of Porter Five Forces Model <&sol;strong><&sol;span><&sol;h3>&NewLine;<p align&equals;"justify">After the creation of Porter Five Forces Model&comma; P&amp&semi;G now&comma; can make an assure success in the competition going around the globe&period; Some of recommendation on basis of five forces model are as follow&colon;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p align&equals;"justify">&lbrack;large&rsqb;• A decline has been observed in US dollar with respect to different currencies and new markets have also evolved like China or India&period; Keeping these factors in view P&amp&semi;G must promote their operation on Global plane&period; This will not only increase in market of company but also generate high revenues &lpar;Dyer&comma; Dalzell&comma; Frederick&comma; &amp&semi; Rowena&comma; 2004&rpar;&period;<&sol;p>&NewLine;<p align&equals;"justify">• Future of any company is dependent on its buyers&period; In 2006&comma; 15&percnt; of the income of Procter and Gamble was collected by Wal-Mart&period; This mutual sharing of Wal-Mart bought up a good deal with P&amp&semi;G&period; Due to this scenario company generate reduce revenue that time&period; Therefore&comma; buyers should be considered while developing any strategy for company&period;<&sol;p>&NewLine;<p align&equals;"justify">• To maintain the reputation of company among the presence of substitutes in market&comma; it is important for P&amp&semi;G to deliver quality products with innovative alterations&period; They should also introduce new and feasible products in market to retain its position among consumers&period;<&sol;p>&NewLine;<p align&equals;"justify">• As an example&comma; P&amp&semi;G has bring in new and more long lasting diapers in the market place to hit the opposition&period; The efficiency and effectiveness of product can contribute to good will of company&period;<&sol;p>&NewLine;<p align&equals;"justify">• The prices of products should be controlled so that consumer loyalty can be retained even in times of recession&period; People will certainly prefer quality products when they are getting right value for their money&period;<&sol;p>&NewLine;<h3><span style&equals;"font-size&colon; x-large&semi;"><strong>References<&sol;strong><&sol;span><&sol;h3>&NewLine;<p align&equals;"justify">Procter &amp&semi; Gamble &lpar;2012&rpar;&period; Website&colon;http&colon;&sol;&sol;www&period;pg&period;com&sol;en&lowbar;US&sol;company&sol;index&period;shtml Retrieved&colon; 19th Oct&comma; 2012<br &sol;>&NewLine;Wherrity&comma; Constance &lpar;2006&rpar;&period; &&num;8220&semi;Dial Agrees to Buy P&amp&semi;G Deodorant Brands&&num;8221&semi;&period; Pierce Mattie Public Relations New York blog&period;<br &sol;>&NewLine;Dyer&comma; Davis&semi; Dalzell&comma; Frederick&semi; Olegario&comma; Rowena &lpar;2004&rpar;&period;Rising Tide&colon; Lessons from 165 Years of Brand Building at Procter &amp&semi; Gamble&period; Harvard Business School Press&period;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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