Procter & Gamble : Competitive Advantage Essay

2081 Words Nov 10th, 2016 9 Pages
Procter & Gamble is one of the largest manufacturing firms in the world, providing a wide variety of different products for over 50 internationally leading brands. On top of this, they are a prime example of a company that is able to both successfully innovate and implement change in order to gain a meaningful and sustainable competitive advantage. In addition, Procter & Gamble 's innovations have an impact on not just the firm, but the entire distribution channel. Their primary strategy in the design process has been to maximize the value provided to the customer by eliminating all of the activities that do not contribute any value to the end product and user experience. To achieve the goal of maximized value, Procter & Gamble realized the need to service both its customers and channel, and thus focused on two key strategies. The two main strategies they implemented in their effort to maximize value provided was to improve channel efficiency and relationships and to increase customer loyalty. These approaches proved to be very valuable in improving not only the performance of Procter & Gamble but the performance of the retail industry overall.

One of the key decisions made by Procter & Gamble in relation to the distribution channel focused on improving supply logistics and reducing channel inventory. The first step taken by Procter & Gamble was implementing a new approach to channel logistics for replenishment ordering. The initial testing of the process with a…

Related Documents