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Proctor and Gamble - Case Analysis

Procter & Gamble started in 1837 as a low key manufacturer of soap and candles. Presently it is a Fortune 500 company responsible for the manufacture and distribution of a number of popular consumer goods, ranging from Ivory soap to Crisco vegetable oil to Crest toothpaste (Encyclopedia Britannica, 2010). As is the usual business sentiment, there is no where for Procter & Gamble to go but up. The company has gone from an initial investment of nearly $7,000 to a company grossing $68 billion annually (Agenmonmen, 2006). It has accomplished this through a number of acquisitions, most notably Gillette in 2005 (Associated Press, 2005). With so many popular products on the market, Procter & Gamble has established itself as a permanent fixture in the American household. As P&G can old further assert itself in this way, it must presumably seek to acquire a greater diversity of household products.

Despite a tightening economy, Procter % Gamble has managed to flourish on a global scale. It has established a presence on every continent. Although consumption has contracted, consumers have assumed more concentrated, need-specific spending habits that have helped solidify P&G's enduring dominance in the convenience goods market. As the demand for nondurable goods such as petroleum or alcohol generally doesn't falter as the result of macro-environmental factors, such as high interest loans and the general curtailing of long-term investments, those nondurable goods sold by P&G have not seen a disparaging decline in sales.

A five forces analysis of Procter & Gamble suggests that despite P&G's success, there is always room for profits to soar or wane. As P&G does not enjoy a monopoly over the many basic consumer goods it produces, the threat of substitute products or services is always present. Furthermore, the free market provided ample opportunities for competitors to get their feet in the door and deprive P&G ...

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Proctor and Gamble - Case Analysis. (1969, December 31). In LotsofEssays.com. Retrieved 10:20, March 28, 2024, from https://www.lotsofessays.com/viewpaper/2001378.html