The Strategic Development of Procter and Gamble into a Global Giant

Procter and Gamble (henceforth P & G) is one of the largest manufacturers and distributors of consumer products in the world with a global reach for it 300+ brands of 180 countries. During the 1990’s the company made some significant alterations to its corporate strategy; it aimed to reduce its cost structure and develop its differentiated business-level strategy, in an attempt to increase revenues and profits. The rapid development of international markets and globalisation demanded a corporate “shake up”. Moreover, the reduction of trade barriers and tariffs indicated that to retain a competitive advantage globally the company had to develop an effective International strategy, whilst benefitting from economies of scale.  Cross-functional integration and speed of innovation increasingly became imperative to corporate strategy. In this article I will look at the key development that took place in thus process and turned P&G into such a powerhouse. Continue reading

Everybody can make a sandwich – The question is just how you do it!

The Subway brand, with its innovative service approach, crafty pricing strategy and delicious meals, has in the last years grown massively; not only in reputation but the chain has also surpassed McDonald’s in having more restaurants worldwide. The chain works with the discipline of operational excellence and has a creative and extraordinary business idea that just amazes me and has really changed my perception of the fast food industry. There are so many fast food chains out there today that are incredible in the way they do business; being innovative seeking to get their customers to buy more and more from them; but Subway, according to many, takes the standard of the fast food industry to other levels and is in a class of its own.

If you think about it, the Subway sandwiches and menu’s are not particularly cheap, and the restaurants does not provide an upscale, chic environment that could please a huge crowd like many of the other popular fast food chains. Yet they always somehow provide a sense of personalisation, belonging and a feeling that they listen and indeed, actually care about what you have to say; all this while being very productive with handling customer requests at the same time. Continue reading

CRM in Football – The Case of Manchester City FC

Customer relationship management applies beyond the traditional product and service offerings. CRM has become a core strategic element of sports clubs that recognise the importance of managing and understanding their supporters. For many fans, the football brand is a passion! Due to their cultural ties and emotional appeal, sports clubs surpass organisations operating outside the realm of sports in brand adoration and loyalty. However, this brand craze creates a complex environment and requires careful management and anticipation. This process is especially difficult in the football industry where competition over followers is fierce. It is evident that football without fans wouldn’t be the sport that it is today; a weak fan base leads football clubs to ruin. Fans, as customers, are the base of the football club’s economic model and should not be taken for granted; they fill up stadiums, buy merchandise, and attract sponsorships. Continue reading

This Must be Africa

With investment levels surpassing $120 billion last year alone, Chinese companies have been increasing their business activities in Africa over the last decade (see graph below). All in all, their involvements have done more to fight poverty than any other country in the world by speeding up economic growth and producing jobs. However in the past few years, Africans have started contemplating whether there is a hidden agenda underneath all the investments. Are all the investments just modern colonisation? And why are Western businesses not as eager to enter the African markets? This article will uncover some factors that determine why Chinese investors find Africa so much more attractive than their Western counterparts. Continue reading

Foxconn’s Liason with Sharp

A new alliance against the industry’s number one Samsung forms in East Asia. The Hon-Hai group from Taiwan, better known under the name ‘Foxconn’, as the producer under contract of Apple’s iPhone and iPad, bought 10% of the Japanese electronic enterprise Sharp. The stock exchange reacted with a jump on the announcement of the new Sharp president Takashi Okuda, who is supposed to officially take over the lead of the company in the beginning of April. The stock price of Sharp rose 15%. Okuda announced that Sharp’s strategy will change. They had been trying to get along solo but the pressure from competition was too high. Continue reading

Google Plus: A Brief Insight

Google Inc. launched Google+ on June 28, 2011 in an invite-only “Beta testing” phase . Users were then allowed to invite their friends and to create their accounts. The following day, this policy was dropped due to an ‘insane demand for accounts’ (Shaer, Matthew). Google announced on July 14th, 2011 that Google Plus had reached ten million users just two weeks after its limited trial phase . After four weeks, it had reached 25 million. Google’s biggest market was the US, followed then by India (Google+ Draws). Larry Page then declared that the service had reached 40 million users in October 2011. Males have been the majority of early adopters of Google+ (71.24%). The dominant age range is between 25 and 34. A survey estimates 13% of US adults have joined Google Plus and is projected to have 22% of US adults in a year.

Five Reasons Why Google+ Failed
Continue reading

Nespresso – What else?

How the luxury brand Nespresso managed to tie an impressive number of over 10 million customers with a concept of club membership and its “belonging to an elite group” approach.

Launched in 1986, Nespresso is the worldwide pioneer and market leader in high-quality portioned coffee offering innovative coffee machines and 16 flavours of “Grand Cru” capsules. It is an autonomous global business unit of Nestlé, the world’s largest consumer goods company. Nespresso caters to both private consumers and the business segment. The latter generates the lion’s share of Nespresso’s turnover and has grown impressively. With its 20% annual growth rate and double-digit sales increases in world markets; Nespresso is Nestlé’s fastest growing operating unit. It also belongs to Nestlé’s famous billion dollar brands with a turnover of CHF 3.2 billion in 2010. Continue reading