are there any major differences between P & G and European based rivals? What conclusion can...

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are there any major differences between P & G andEuropean based rivals? What conclusion can you draw from this?

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There is a lot of difference between P G and its European Rivals The review of PG as below in itself portrays the difference PG is a leader in the market Procter Gamble Global Giant in Household Personal Products The Procter Gamble Company or PG PG is the largest household and personal products company in the world The company was established in 1837 by founders William Procter and James Gamble PG along with its subsidiaries manufactures and sells consumer packaged goods The company is geographically diversified and sells its products in more than 180 countries and territories PG operates through five segments Fabric Care and Home Care includes brands such as Ariel Tide and Downy Baby Feminine and Family Care includes brands such as Pampers and Always Beauty includes brands such as Olay Pantene and Head Shoulders Grooming includes brands such as Gillette Health Care includes brands such as OralB The above chart shows that most of PGs revenue is consistently generated within North America CEEMEA in the above chart stands for Central and Eastern Europe Middle East and Africa Top consumer staples stock Procter Gamble figures first among the 39 holdings of the Consumer Staples Select Sector SPDR ETF XLP with 1231 of the portfolio weight ETFs including the iShares Core SP 500 ETF IVV and the SPDR Dow Jones Industrial Average ETF DIA provide exposure to PG IVV and DIA invest 12 and 29 of their respective portfolios in PG Largest market cap in the sector The consumer staples sector is highly competitive PG competes against a wide range of global and local companies Yet PGs market cap is 2152 billion the largest in the consumer staples sector Here are some of the domestic and international players operating in the same lines of business as PG and their market caps Unilever ADR UL 1262 billion ColgatePalmolive CL 602 billion Estee Lauder EL 334 billion All figures like the ETF portfolio weights and the market caps are as of June 27 2015 Competitive analysis The Procter Gamble Company or PG PG is the largest manufacturer and seller of household products in the world Olay Pantene Head Shoulders Gillette and Pampers are some of its major brands Given that the consumer staples XLP sector is highly competitive PG faces local as well global competition from various players worldwide 1 PGs Stock Performance Versus Peers Closing PricesProcter Gamble Co PGKimberlyClark Corp KMBEstee Lauder Companies Inc ELColgatePalmolive Co CLClorox Co CLX20122013201420150 50 100 150Source BATS Exchange Porters five forces In examining Porters five competitive forces at work at PG we find that three are horizontal in nature competitive intensity among rivals new entrants to PGs product categories ease of product substitution and two are vertical customer bargaining power supplier bargaining power Horizontal forces PG offers a wide range of products and so its hard for a new company to compete with a similar product portfolio Peers Unilever UL and Estee Lauder EL invest large amounts of capital on comprehensive research for their beauty brands Using this research the companies develop complete marketing strategies to promote particular products as special and distinct In this way UL and EL are able to compete with PG in specific areas of the companys giant portfolio PGs focus has always been on quality and innovation Many local and international brands including ColgatePalmolive CL offer substitutes such as Colgate for OralB Connect and develop In 2001 PG adopted a collaborative innovation strategy called Connect and Develop The idea was and is to allow PG to identify and create worldwide partnerships with universities and institutes sole inventors emerging companies small and medium enterprises See Answer

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