High gross profit margin – Because of their expenditure in RD as well as Marketing and distribution, PG believes in
keeping higher profit margins, a strategy which has benefited them immensely because they have the highest margin in the FMCG industry. This in turn results in the brand investing even further in brand building and therefore revenue generation.
Fantastic distribution channel
– Be it Rural, Urban, or Online, PG brands have covered all distribution channels. There is so much demand
for the product by themselves, that if they are not present in the market, then a competitor will soon takeover. But the job done by the distribution team is commendable because managing the inventory and deliveries of so many products across so many locations is a tough job.
WeaknessesOrganization structure
causes slow decision making – Because it is an old Organization and as there are so many SBU’s and portfolio’s to manage, the decision making is said to be slow and hence it affects the organization as a whole.
Imitable Products – One of Procter & Gamble’s main weaknesses is the imitable nature of its products. This weakness is typical in the consumer goods market, where products from different companies have considerable similarities. Having imitable products is a weakness because it makes Procter & Gamble
susceptible to imitation, which could reduce market share.
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