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... Thus, while P&G was able to benefit from its first mover advantage, there are many problems arising that could cause P&G to lose its strategic advantage. ...
Situation Analysis:
P&G is a company with a strong corporate culture. ... All of these factors allowed P&G to gain significant market share within the emerging Russian market. P&G knew that consumers wanted top-quality Western products as fast as possible within the constraints of their relatively low-income levels and they were able to market their products accordingly. ... P&G invested in production plants within Russia and were able to create their own distribution system that gave them a competitive advantage in breadth and depth of coverage. ... As a result, P&G was able to acquire a strong market share and compete very successfully within the industry.
The problem P&G was encountering was sustaining this market share and competitive advantage they held over other firms. ... They also realized, that Russia would eventually develop distribution channels, which their competitors could use, and would therefore get rid of the advantage P&G had by using their own distribution channels. P&G also faces other problems and threats. ... Also, a lot of P&G’s products are being diverted from other cheaper countries to Russia which is cannibalizing the company’s sales and causing them to lose out on profits they could otherwise acquire. ... This healthier economy has helped P&G to overcome variable wages which effect what products Russian consumer buy. ... This is a major threat to P&G who only produces top quality products.
Approximate Word count = 1297
Approximate Pages = 5.2
(250 words per page double spaced)
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