Common Strengths
The strong branding of the two companies make them one of the most successful brands in the world. Extensive experience in marketing in different market segments and is two of the best marketers in the world. Known for its diverse brand portfolio. The companies are able to customize their global products and brands according to the local preferences. Significant scales of scope and economies in their operations Access to global resources and synergy of resources and operations
Common Opportunities
Usage of online social networks and internet marketing techniques.
Rise in purchasing power and population in developing countries (China, Indonesia, Thailand-these markets are less saturated and less competitive) Increasing need for healthy products due to better consumer awareness
THREATS
There is a cut throat competition in the fast moving consumer’s goods markets today The other competitors are making their product portfolios diverse day by day and using different marketing and promotional strategies to increase their market share. In the market many substitutes are available for products at cheaper prices.
This is specially affecting the strategy of P & G Due to recession, the consumer spending has decreased globally. Also, the prices for raw materials are increasing so cost to the company is increasing. Government interventions in developing markets
WEAKNESSES
The large scale operations of the two companies make the cultures heavy and processes slow. This also leads to quality control problems. Complex organizational structures (dealerships with many associates, joint ventures and agency relationships) Lack of direct connection with ultimate consumers due to dependence on retailers and wholesalers(in Western countries retail giants such as Tesco, Asda and Sainsbury are very strong and have the ability to dictate big multinational companies).
Inefficient management of brands (being unable differentiate between stars,cashcows and dogs according to Mandelow’ s Matrix eg-25 brands of Unilever account for 73% of global sales and about half of P&G’s sales come from its top ten brands)
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