Proctor & Gamble

Connect And Develop Strategy

Mentored By : Dr. Tirthankar Nag

PROCTOR & GAMBLE

Submitted On: 17 March 2014

Submitted By,
Mohammed Danial
Abhijeet Kasliwal
Neha Shourie
Pallav Gurupanchayan

P&G is an American multinational company based in Cincinnati, Ohio,

that manufactures wide range of consumer goods with net sales of
USD 83 billion in 2008. 24 of its brands have more than a billion dollars
in net annual sales, and another 20 have sales between USD 500
million and USD 1 billion (P&G Annual Report 2008). It is the 18th
largest US company by profit (Fortune 500, 2007), and the 10th most
admired (Fortune Most Admired Companies 2007). The company was
created in 1837 by William Procter, a candle maker, and James
Gamble, a soap maker.

Changes
when
required

STRUCTURE -THE FOCUS AND THE MODIFICATION

1,29,000
Employees

SIZE

CULTURE

TECHNOLOGY
CONTEXTUAL

Superior
quality
products

GOALS &
STRATEGY

ENVIRONMENT

Focus on
Sustainability

Best
technology
used

PROCTER & GAMBLE

DIMENSIONAL FACTS:
EXPALINING P&GS CONTEXTUAL DIMENSIONS

R&D
Finance & Control
Human Resource
Micro-biology

OUR
FOCUS

REASONS FOR CONNECT & DEVELOP

R&D

Fall in stock
price from
$118 to $52

Adjacencies

Financial
objectives
not met

Proprietary
Networks

No
innovations
since 1980

CONNECT & DEVELOP

COMPETITIVE
ADVANATAGE

Open Networks

Outsourcing 45% of the R&D department therefore making it C&D

Finding ideas and capitalize on internal capabilities
Adjacencies - products that help take advantage of existing brand equity
Proprietary network - suppliers and technology entrepreneurs
Open networks
INTERNATIONAL ADVANTAGE

STRATEGY

CONNECT &
DEVELOP

Connect &
Develop

INNOVATIONS
CORE
COMPETENCY

High

Globalization
Strategy

Forces for
Global
Integration

Export
Strategy

Low

Low

Both Globalization
and Multi-Domestic
Strategy

MultiDomestic
Strategy

Forces for National Responsiveness

High

MILES AND SNOW

PORTERS COMPETITIVE STRATEGY

Prospector

Low Cost Leadership

Differentiation

Defender

Analyzer

Porters
Competitive
Strategies

Reactor
P&G invests in its successful products in order to maintain
financial performance and also encourages the development
of new product and brand names. In this way it continues to
expand its market presence and have new products to replace
those whose market falls off.

Focused Low Cost

Leadership

Focused Differentiation

Procter and Gamble follows a Differentiation Strategy for

connect and develop.

GLOBAL STRATEGY

Globally Networked Internal Model (Managing Across Borders)

International

MultiNational

Technology entrepreneurs in 6 connect-and-develop hubs in China, India, Japan,

Western Europe, Latin America and the United States.
70 technology entrepreneurs around the world.
45% of the initiatives in product development portfolio have key elements that
developed externally.

Domestic

Global

Open Networks NineSigma, Innocentive, YourEncore and Yet2.com

External Business Development (EBD)