P&G has been experiencing success by providing its consumers with differentiated value by offering exceptional products at premium prices. Consumer trends were greatly influenced by the 2008 recession forcing consumers to look for lower prices in the market, a trend that has affected business at P&G negatively. P&G has also been experiencing frequent quality control problems over the past with various products experiencing product recalls in 2006. The company is also faced with the challenge of counterfeit goods which are damaging to the image of the brand. The company is known for its multiple billion and half-billion dollar brands which the company should focus on to reinforce its competitive advantage which is built on innovativeness (Trulaske College of Business).
P&G has been providing its consumers with exceptional products which often cost its consumers significantly higher prices compared to those of its competitors. The company intends to keep up with its quality, but because of consumer demands, the company needs to reduce their pricing. The stuck in the middle strategy intends to balance all the competitive advantages for the consumer, but at the same time risks the company losing focus and direction (Bruner).
The company needs to come up with systems which will streamline its business processes. These processes should be aimed at reducing the cost of production while simultaneously retaining high-quality services. This strategy will increase the value proposition to its consumers since the company will be able to offer the same quality at lower prices, enabling the company to widen its market share (Trulaske College of Business).
The current leadership model by P&G to promote from within the company is advantageous since these employees are already familiar with the company’s organizational structure. The disadvantage of this model is that promoted members from the company may not bring any new ideas to influence the turnaround that the company is in need of. Recruiting from outside is advantageous since these new members may introduce new ideas which are likely to influence the company’s turnaround. The disadvantage to hiring externally is that the new members might take time learning the organizational culture and the systems at the company (Montanna State University Billings).
Works Cited
Bruner, Robert F. Stuck in the middle. 16 January 2012. Web. 30 June 2016. <http://blogs.darden.virginia.edu/brunerblog/2012/01/stuck-in-the-middle/>.
Montanna State University Billings. Pros and Cons of Internal and External Recruiting. n.d. Web. 30 June 2016. <http://www.msubillings.edu/BusinessFaculty/larsen/MGMT321/Recruiting%20-%20internal%20v%20external%20hiring.pdf>.
Trulaske College of Business. P and G; Reccomendation HOLD. n.d. Web. 30 June 2016. <https://business.missouri.edu/ifmprogram/reports/2010SP/P%26G%20Report.pdf>.
