Essay on The Evolution of Strategy at Procter and Gamble

798 Words Jan 17th, 2013 4 Pages
International Strategy

E) When there are low cost pressures and low pressures for local responsiveness, an international strategy is appropriate. An international strategy involves taking products first produced for the domestic market and then selling them internationally with only minimal local customization.

The Evolution of Strategy

G) An international strategy may not be viable in the long term, and to survive, firms may need to shift to a global standardization strategy or a transnational strategy in advance of competitors. Similarly, localization may give a firm a competitive edge, but if the firm is simultaneously facing aggressive competitors, the company will also have to reduce its cost structures, and the only way
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The company’s initial reorganization was a reaction to a changing marketplace and sluggish profits, however, when it became apparent that the reorganization attempt was not really fixing the problems that existed, the company embarked on a new strategy. This time, rather than simply trying to adjust its existing strategy as the company had done in 1993, Procter & Gamble completely dismantled the structure that had been in place for a quarter of a century and reorganized as a company ready to operate in a global marketplace.

2. What factors have forced Procter & Gamble to change its strategy? As a competitor to Procter & Gamble, what can you learn from the company’s experiences?

Discussion Points: Numerous factors prompted Procter & Gamble to change its strategy. Because of its country-by-country approach to the market, the company had extensive duplication of manufacturing, marketing, and administrative facilities that were driving up costs. In addition, the retailers that the company relied on were operating globally and demanding deeper discounts from Procter & Gamble. With its new strategy, the company has eliminated these problems. Now, Procter & Gamble’s competitors are facing many of the same challenges. Some students will probably suggest that a key element that competitors can learn from Procter

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