SWOT Analysis of The Procter & Gamble Company (P&G)

by Shamsul
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SWOT Analysis of Procter & Gamble, Competitors and UPS

SWOT analysis of any company or organization shows its strengths, weaknesses, opportunities, and threats. It highlights the internal factors (strengths and weaknesses) of a company’s work and performance. It also gives information about external factors (opportunities and threats)This is the best way to evaluate your performance in comparison with competitors. You can identify your strong points, weak factors, promotional chances, and risky things. With these things, indeed, you can set the right direction for your company’s work to gain a competitive edge over other companies. In the FMCG zone, Procter & Gamble is a giant. In this SWOT analysis of Procter & Gamble, we will also discuss the leading competitors and USP (Unique Selling Proposition).

  • Parent Company: Procter & Gamble
  • Founded: October 31, 1837
  • Type: Public
  • Founders: William Procter, James Gamble
  • Headquarter: Cincinnati, Ohio, USA
  • Area Served: Worldwide (excluding Cuba, North Korea)
  • Industry: Consumer Goods
  • Sector: FMCG
  • Slogan: ‘’Touching Lives Improving Life’’
  • Number of employees: 101,000 (2021)
  • Revenue: US$76.120 billion (2021)
  • Net Income: US$14.31 billion (2021)
  • Product Portfolio: Oral B, Tide, Ariel, Head & Shoulders, Pampers, Gillette Mach3, Duracell, Pantene, and more.

Strength of P&G

  • The company have currently 300+ brands internationally that are accessible in more than 180 countries of the world.
  • It has a strong workforce of over 100,000 people globally, thus, it is one of the biggest strengths of the brand.
  • Most of its brands earn billions of dollars annually. Thus, the leading brands the company are 24 that fall on this list.
  • Its marketing and advertising strategy is really effective. Therefore, it has a high recall value. This kind of reach and visibility is all because of strong marketing and promotional strategies.
  • Currently, it is fully functional in more than 80 countries and operating successfully.
  • Certainly, the main reason for the high recall of the brand is that it sponsors various entertainment and sporting events countiniously.
  • Some brands like Ariel, Duracell, Gillette, and Olay are very prominent around the world.
  • It has secured many international and local awards due to its winning performance.
  • Procter & Gamble has constructed a strong competitive advantage due to its sponsorships and lifestyle events.
  • The main strength of the brand is that its brands and products are widely available in every grocery and departmental stores.

Weaknesses of Procter & Gamble:

  • Several fake brands and products use Procter & Gamble’s name, which is a big problem for the company.
  • The FMCG sector is really competitive, and there are so many international and domestic players in the market that are giving stiff competition to Procter & Gamble.

Opportunities of Procter & Gamble:

  • It can target rural areas to increase its penetration and reach. P & G is doing well in urban areas, but they have a lot of amazing opportunities in rural markets.
  • Additionally, company should think about useful acquisitions and mergers to strengthen its business.
  • They can target purchasing power of the customers to increase supply and demand.
  • P&G has a wonderful opportunity to diversify its brands and product portfolio because it is a trusted and strong name in the FMCG sector.

Threats to P&G:

  • FMCG sector is really competitive and dense, and many international and local brands are giving tough competition. They can threaten their profitability and reach.
  • Unbranded and domestic products are a significant threat for the brand.
  • There is no doubt about it that Procter & Gamble is a global brand, so economic recession, border situations, and fluctuating currency rates can affect their business operation.

Competitors of Procter & Gamble:

The FMCG sector is highly dense and filled with so many domestic and international giants. Here’s the list of some big competitors of the brand.

  • Dabur India.
  • Marico.
  • L’Oréal.
  • Colgate-Palmolive.
  • ITC Limited.
  • Unilever.

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