How practor & Gamble became a fortune five hundred company.
70
PG is the forefather of many comanies that are now enjoying the return on their investments.
William Procter a candle maker & James Gamble, a soap maker, were both immigrants from England who settled in Cincinnati where both men married sisters. The consequence of the panic of 1837 caused competitive rivalry to heat up between the two. A family meeting was called by their father- in – law, where he convinced his new sons to become business partners.
Since both businesses utilized similar resources, a horizontal integration had been taken flight. On October 31, 1837, as a result of the father in – law suggestion, William Procter and James Gamble became P&G Production, Inc.
The company is now a multi billion dollar business that operates over more than 70 countries around the world. The company is presently part of the fortune 500 list, America’s Top Performing Companies.
Most people who are not aware of the name Proctor & Gamble however, are very well aware of their products. One of the many reasons why PG products have done so well has had to do with the fact that they manufacture products that are necessary for everyday living conditions. Selling a product or services that cater to necessities (one’s needs) can never be a bad investment under a growing economy.
This company takes a transnational approach toward marketing. It is this approach that has granted them the reputation as the world largest household products manufacture. This is a company that sells products catering to ones personal hygiene and health; in this case the chances for success are always high.
Some of their products are Sunny Delight, Febreze, Bounty, Tide, Crest, Pampers, Duracell, Olay, Gillette and I can surely continue with more. Gillette is one of the least recent purchases of PG. They are known in the corporate world as a buyout company. They have become the shark that eats away small enterprises that have left to struggle without a parent company. PG is the forefathers of many companies that are now enjoying the return on their investments. Many small enterprises have in the past turned to P&G for a helping hand.
Proctor & Gamble also channel their resources and capabilities in many different types of business, they’re known in the entertainment industry as one of the world’s most influential advertising companies. They have managed to gain access to interest groups of the entertainment industry by developing software called ( IMDbPro) which is an Internet Movie Data Base. This software was designed exclusively for people who are in the entertainment industry who wish to promote their talent through PG.
In Sept. 2007 the companies engaged in an e-commerce venture that will be totally independent from the company headquarter. The stand-alone company will be named Reflect.com which will deliver custom design beauty-care products, ordered over the Internet. Unfortunitly, PG has closed the door on Reflect.com for reason pertaining to long term strategic goal. See detail at DMnews.
More interestingly, they’re also a pharmaceutical company. On November 2000 PG announced their donation of a chemical patent to Vanderbilt University. This patent is described as a chemical compound which could heal ulcers while it relieves pain. This chemical compound is known as COX-2 Inhibitor and it is part of the same family tree as Celebrex and Vioxx.
I think by now, most folks who are aware, know the history of Vioxx since it was removed from the market on Sept. 2004. Vioxx was an anti-inflammatory drug that was approved by the FDA in May 1999 for the relief of the signs and symptoms of arthritis. However, before the removal of Vioxx from the market, the drug generated billions of dollars in revenues. Its affiliate Celebrex on the other hand is still in the market.
PG incentive for producing a drug of the same roots as Vioxx is obvious but what’s puzzling to us all, is how this drug will be compared with Celebrex, Naproxen or Ibuprofen. In this case, PG has managed to apply a product differentiation strategy that will differentiate their product with that of their competitors, on the basis of effectiveness and non- life threaten. It is this strategy that have help PG to gain brand loyalty that have contributed in the elevation of their status as one of the fortune five hundred American company. PG has diversified itself into a gigantic company with multiple resources and capabilities. And it is because of the implementation of their strategies that they can become as successful as they are now.
