Business-Level and Corporate-Level Strategies Essay - 3

Business-Level and Corporate-Level Strategies - Essay Example The company is well known for establishing product leadership in various grounds like skin care, house care etc. It employs almost 125000 employs and sells almost two hundred brands or more across the globe. Procter & Gamble has developed greater than 28 technical centers around the world (PG-Global, 2012). The company has included market research procedure for taking strategic decision while expanding its business in the market (Kotler, 2009; Silverstein, 1997). It has been successful in extending business operations extensively and achieved high revenue in this time period. The study will perform Procter & Gamble’s strategic analysis in the following manner: 1) Analyzing the business level strategy of the company. 2) Analyzing the corporate level strategy of the company. 3) Analyzing its competitive environment. 1) Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. The SWOT analysis of Procter & Gamble will help in understanding its business level strategy (Graul, et al., 2006). It will help in realizing the alignment related to the organizational issues (Ansoff, 1965; Dickson, 2002; Valentin, 2001; Panagiotou, 2003). This will help to formulate different strategies for overcoming the threats and weaknesses (Porter, 1991). Strengths The company utilizes the economies of scale for reducing the production cost and offering competitive prices, for the products, to its customers. Procter & Gamble has high brand reputation among the customers because of the prolonged business operations in the industry. The company makes high investment in the research and development for developing quality products. Weaknesses The financial statement analysis of Procter & Gamble shows that the cash flow of the company is shrinking. Its domestic market is saturated due to the e xistence of a large number of competitors. The biggest competitor of Procter & Gamble i.e. Unilever is competing highly in the detergent segment because of which the company is being forced to maintain competitive pricing strategy. The company’s cost structure is increasing because of increasing operating structure. The company adopted retrenchment strategy in order to perform cost minimization. Opportunities There is huge scope or opportunity of the company to extend its product line by expansion of its portfolio in the beauty and health segment. The expansion of its product portfolio will help in increasing its market share as well as number of customers. Procter & Gamble has low market share in the developing countries like India, China, and Brazil etc. It has the opportunity to perform market penetration in these regions. Its domestic retail market has an increasing growth trend from past few years which provides opportunity to the company to cater the needs and demands o f the customers here. Threats In the developing market sector of the business operations of Procter & Gamble the local players are giving tough competition to the company and the developed market segment is being saturated gradually because of the existence and entry of large number of multinational companies. The cost associated with the value chain has increased gradually which has made it tough for the company to achieve economies of scale. Recommended Strategy for long term success Procter & Gamble