Procter And Gamble Case Study

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Procter And Gamble Introduction

The significance of SWOT and PESTEL analysis can be comprehended in the process of analysing the external and internal factors while operating a business operation in this competitive world. SWOT analysis helps in identifying the internal factors of Procter and Gamble and guides the authority to take appropriate steps in managing weaknesses and turn them into their strengths. PESTEL analysis helps in defining the external factors which can give the opportunity towards the authority of Procter and Gamble to improve their organisation structure which can help in increasing their sales revenue for this association. It can help this company to give a tough competition to its competitors in this competitive market.

Company Profile

Company Name

 Procter & Gamble

Type of industry

 Consumer goods

Headquarters

Cincinnati, Ohio, United States

Sales/Revenue

 $67.48 billion

Area served

 Worldwide

Number of stores

 130 manufacturing stores in more than 35 countries

Competition

Marico, Newell Brands, Unilever, Johnson & Johnson

USP

 P&G is one of the most stable and oldest customer products

Target Group

 People with low and high priority in fashion and health care.

Products

 Grooming products, beauty and health care products

Website

 https://us.pg.com/

Table 1: Company profile

Procter and Gamble Swot Analysis

Strengths

  • The association of P&G has branches in more than 35 countries.
  • Reliable availability and distribution of P&G goods through the help of groceries, supermarkets and online.
  • The brand value of P&G is very high due to reliable advertising and marketing.
  • Effective brands help in managing the relationship with customers.

Weaknesses

  • Tough competitions with international and domestic players.

Opportunities

  • Enhancing the purchasing power
  • Increasing the penetration in urban areas.
  • Powerful brands in diversifying into more customers’ products.

Threats

  • New entrants of competitions
  • Economic crisis would affect the growth of their business
  • Competition from local and unbranded products.

Table 2: SWOT analysis

(Source: As influenced by Shabanova et al. 2015)

Procter and Gamble Analysis

Strengths

As per the case study of Procter and Gamble, strengths and weaknesses of this brand have been identified through the help of SWOT analysis. Therefore, the authority of this company takes responsibility in improving their products and services in order to gain customer satisfaction which can give a positive impact over the growth of this company. As per the case study of Procter and Gamble, it has been recognised that the service providers of this company provide efficient products towards their customers through the help of online marketing, supermarkets and groceries (Pg.com, 2018). By contributing authentic products, the authority of Procter and Gamble spreads their business into more than 35 countries which can give a competitive advantage towards this company in this competitive market. The brand value of this company is very high since the authority of this company takes care of the quality of their products. It can help in attracting more existing and new customers through the help of their reliable beauty and health related products.

Weaknesses

On the other hand, in this emerging market, fake products are available at cheaper prices at various second hand shops which can harm the reputation of the company since then products would not be of the actual quality. As per the case study of Procter and Gamble, it has been recognised that the competitors such as international and domestic company can improve their services and products in order to give tough competition towards this company (Pg.com, 2018). Therefore, the authority of this company takes initiative in analysing its market frequently which can help in improving their products depending on the needs of their customers. It can help in staying ahead of its competition without facing any difficulties.

Opportunities

As per the case study of Procter and Gamble, it has been recognised that new innovative products can create many opportunities towards the population of the US. According to Gürel and Tat (2017), it can help in decreasing the unemployment rate for this country and also increase the job opportunities towards people.

Threats

As per the case study of Procter and Gamble, it has been recognised that new entries of competition would be the threat for this company. Therefore, the authority needs to take appropriate measurements to cope up with its competitors in this emerging market.

Procter and Gamble Pestel Analysis

Political factors

  • Taxation policies
  • Trade restrictions
  • Government laws and policies
  • International trade laws

Economical factors

  • National income is average
  • GDP growth rate is increased by 2.3%
  • Interest rate is decreased by 2.5%
  • Inflation rate is decreased by 1.6%
  • Marketing demand is very high

Social factors

  • Employment rates have been increased
  • Urban-rural divide
  • Population growth increased by 0.7%

Technological factors

  • Innovation and presence in technology
  • The appearance of new creative technology in implementing goods
  • Spreading the products in marketing

Environmental factors

  • Eco-friendly practices
  • Pollution controlled
  • Sustainable environment
  • Weather

Legal factors

  • Equality Act 2010 (c.15)
  • Human Rights Act 1998(c.42)
  • Guidelines of health and safety.
  • Ethical standards for advertisement.

Table 3: PESTEL analysis

(Source: As influenced by Kauškale and Geipele, 2017)

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Procter and Gamble Analysis

Political Factors

For the company of Procter and Gamble, PESTEL analysis has helped in assessment of the political factor that has helped in identifying the nature of taxation policies and trade restrictions (Pg.com, 2018). Therefore, the authority of Procter and Gamble can take appropriate steps in managing those political factors which can give a positive impact over their sustainable growth for their association. It can help this association to spread their business into various other locations in an effective manner.

Economic Factors

As per the case study of Procter and Gamble, it has been recognised that economic factors play a major role in developing the brand value of a company. The GDP growth rate of United States is near about 2.3% which can help the authority of Procter and Gamble to improve their products in order to attract more customers which can increase the productivity of this company in order to maintain their GDP growth rate. On the other hand, the inflation rate in this country has decreased by 1.6%; this can prove to be beneficial since the company can allow their scheme of price change to suit the needs of customers (Pg.com, 2018). Additionally, interest rate of this country has been decreased by 2.5% which can help the company to improve their productivity in order to attract customers. Therefore, it can help in increasing the rate of their sales revenue which can help in spreading their business into various other locations.

Social Factors

As per the case study of Procter and Gamble, it has been analysed that the authority of this company provides job opportunities towards the population of this country. In the words of Nekrasov and Melnyk (2017), it can help in increasing the employment rate for this country and also develop the economic condition as well.

Technological Factors

New technical innovations help in increasing organisational functioning in an adequate manner. It would help the company of Procter and Gamble to enhance the performance abilities and also increase the productivity as well.

Environmental Factors

In addition to this, environmental factors can guide the authority of Procter and Gamble, to take effective steps in managing that environment and improve their organisational structure as well. It can help in increasing the growth rate of customers and also increase their revenue growth rate as well.

Legal Factors

The management of Procter and Gamble is needed to integrate government laws and regulations in order to maintain the rights of employees and customers such as The Human Right Acts 1998, Equality Act 2010 and several others.

Reference List

Gürel, E. and Tat, M., (2017). SWOT analysis: A theoretical review. Journal of International Social Research10(51). pp. 54-105.

Kauškale, L. and Geipele, I., (2017). Integrated approach of real estate market analysis in sustainable development context for decision making. Procedia Engineering172(9), pp.505-512.

Nekrasov, V. and Melnyk, V., (2017). Application of SWOT and PESTEL analysis in combating economic crimes and when identifying threats to economic security of the state. Probs. Legality136(8), p.193-220.

Pg.com (2018), Procter and Gamble. Available at: https://www.pg.com/en_IN/downloads/investor_relations/pghh/annual_reports/annual_report_2018.pdf [Accessed on 25 July 2019]

Shabanova, L.B., Ismagilova, G.N., Salimov, L.N. and Akhmadeev, M.G., (2015). PEST-Analysis and SWOT-Analysis as the most important tools to strengthen the competitive advantages of commercial enterprises. Mediterranean Journal of Social Sciences6(3), pp.70-85.

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