Swot P&g

SWOT ANALYSIS

P&G is a global manufacturer and marketer of consumer products. It operates in five distinct business segments: fabric and home care, beauty care, baby and family care, health care and snacks and beverages. It has some of the most well-known and established brands in its portfolio but faces intense competition from other global consumer giants as well as local companies.

Strengths

Large scale of operations

P&G has significant scale advantages. It is the global leader in all its four core categories - fabric and home care, beauty care, baby and family care, health care. Its products are sold in over 160 countries worldwide with manufacturing capabilities in over 42 countries. The company manufactures and markets close to 300 products. It derives substantial economies from its scale of operations in finance, logistics, marketing, research, new product development, innovation, technology and other functions. The company’s huge buying power (from commodities to media) is being progressively leveraged through global procurement and services. A large scale gives P&G significant competitive advantage against the smaller, unorganized players in local markets.

Strong branding

P&G is one of the world's most successful brand creation and brand building companies. The company participates in more than 40 product categories with 300 brands in roughly 60 markets. Some of its very well-known brands include Tide, Pampers, Bounty, Charmin, Cover Girl, Pantene, and Clairol. Moreover, as of 2004, the company had 13 brands with sales exceeding one billion dollars. Together, these brands have sales of over $24 billion. P&G continuous involvement in consumer research helps it understand, anticipate and respond to consumer needs and wants and hence create marketing and advertising innovations more effectively and efficiently than many other companies. P&G brand leadership helps it implement brand building innovations with retail and media partners in ways that few companies can match. It has one of the largest and strongest portfolios of trusted, quality brands, including Pampers, Tide, Ariel, Always, Whisper, Pantene, Bounty, Pringles, Folgers, Charmin, Downy, Lenor, Iams, Crest, Clairol Nice 'n Easy, Actonel, Dawn and Olay. These brands have leading market share in their respective categories, an offer the company a significant edge over its competitors.

Product innovation

P&G creates more new brands and categories than any other consumer goods company. In 2003, three of the top 10 new non-food products introduced in the US were P&G products. Over the past eight years, P&G has introduced the number one or number two new non-food products in the US every year. P&G's brand-creation and product development leadership is driven by the company's enormous research and development capacity. The company has nearly 7500 researchers working in 20 technical centres on four continents. It has more than 29,000 patented technologies for its products.

Strong performance in core categories

On a worldwide basis,