Procter & Gamble Resources, Capabilities and Competitive Advantage
P&G – Procter & Gamble is a consumer product company founded and headquartered at Cincinnati, Ohio in 1837 by Mr. William Procter and Mr. James Gamble. It is now led by Mr. Alan.G.Lafley whom rejoins the company in 2010.
P&G success was contributed to the heart of its business model – Innovation; and that is not just for newly invented product or service, it was for the goal of recreating needs for the improvement of consumers’ living. And it is a very long culture started where the roots started from the founders; whom are soap and candles makers. The first innovative product – Ivory; started in 1879, by James Norris Gamble who is the son of the founder and a trained chemist. Ivory at then was an …show more content…
In product development, molecules used for research have also been digitalized. When needed, it will be modeled to predict product effectiveness.
Back at the roots of their research and development centre, it is inevitable that one would notice the promotion of innovative thinking within their culture. And this strategy is not only for their employees, P&G has also taken the step out to influence their partners. A program called Connect + Develop has been created to embrace open innovation. Not limiting only to their internal resources, P&G no taps onto the vast knowledge that the world can provide. Riding on this program for the past 10 years, it has brought the value that P&G can offer to the market up by 70%. Recognizing its success, it is now a key strategy that is employed throughout every business units. Some of the well known brands that are generated through this program are Olay Regenerist, Febreze and many more.
All these processes are made possible because of the analytical thinking skills found within their employees which plays an important factor since it enabled them to come up with innovative ideas often co-related to analytical data collected. And these processes are not internally focuses; it controlled both the macro and micro environment factors that contribute to their success.
With a very strong innovation culture, P&G today are currently at over 55,000 active patent filings globally and, as a