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