Porter’s Five Forces Model of Procter & Gamble

People around the globe are using different domestic products made by Procter and Gamble. This is the reason why Procter and Gamble is considered as one of the primary source of producing customers goods. The products which are made under the label are further divided into six different categories that are: Paper wares, feminine products, laundry and cleaning, food and drinks, health care and beauty care. Oil of Olay, Pantene, Ariel, head and Shoulder, Sunny delight are the leading brands of Procter and Gamble (Wherrity, 2006). These brands are responsible for half of the sales for the company. With the successful deployment of Porter Five forces model, the industrial environment and marketing success of the company can be analyzed. Porter’s Five Forces Model The objective of Porter Five Forces Model is to beat the competition of market by overcoming the challenges offered by rival companies. The five forces model was analysis developed by Michael E. Porter in 1979. According to this model the five forces that can affect the profits of company and can help to determine the prevailing competition in market are: • New competition threat • Threat due to substitute services or products • Bargaining Power of suppliers • Bargaining Power of Buyers • Threat of established rivals From the above mentioned factors three are part of horizontal competition that are marketing threats of rivals, new entrants...

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