PGs Sustainable Development Strategy - 1947 Words

1. INTRODUCTION The aim of this report is analysis PG’s new strategic—sustainability. In the following text, it will expand the current strategic orientation and through PESTEL mode analysis, Five Forces mode analysis and SWOT analysis to analysis sustainability strategic of PG. Then I will give some suggestions to future development. In the end, I will give a conclusion for PESTEL mode, Five Forces mode and SWOT analysis. 2. THE CURRENT STRATEGIC ORIENTATION Procter Gamble (PG) released its new sustainability vision along with a detailed list of goals that the company plans to achieve during the next decade. Sustainable business practices are quickly becoming the norm for companies like PG. The new sustainability vision†¦show more content†¦But individual consumers have little buying power because they are scattered and they are limited in affection of price. For the large retailers and distributors, they have large buying power in bargaining. Supplier Power Every personal products line has its unique requirement and preferences. By the other word, crude material, ingredients, and components are needed and there are subsequent procedures throughout the production process. So, PG’s bargaining is limited for the quality of the products is context the brand. Threat of New Entrants The big amount of investment is essential in this industry to implement production, distribution, RD, and marketing. Thus, threats of new entrants are relatively limited for this industry. And it also can develop new product. Threat of Substitutes Even major companies like PG and Unilever has been dedicating to build and reinforce their brand recognition and loyalty, this advantage still might be influence pricing power of substitutions. Degree of Rivalry The total global revenue of personal products market was $361.1 billion in 2008 and the global market value is estimated to reach $424.1 billion by the end of 2013 (Datamonitor, 2009). Facing such a large market value, the completion within the market is extremely fierce. There are a number of comparable rivals for PG in terms of company size, brands, capital, and research capability. Major rivals such as Unilever, Avon, Estee Lauder, L’Oreal, all possess their ownShow MoreRelatedThe Procter Gamble Business Strategy1587 Words   |  7 PagesGamble business strategy is to focus on creating new brands and categories so the company can focus on being the best in branding, innovation and scale. This is what sets this company apart from many of its competitors. The Proctor and Gamble are the global leader in all of their core businesses within the company which consists of laundry, baby care, hair care and feminine protection. 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