Procter and Gamble or Cost-Benefit Analysis have been running its business in three product segments, health care, baby and family care and beauty products, for decades. If you are to write a case study of whether the company should have acquired Gillette or not, what will you write?
With 30 brands and numerous products under its hood, it earned more than 40% revenues between 2001 and 2005 and made the largest acquisition by taking over Gillette. (Foreign Direct Investment)
Here are the possible reasons for acquiring Gillette
· Commendatory strengths in product innovation and sale
If you do a case study or Brand Management on Procter and Gamble, you will know that the company has a huge worldwide presence. If the management decides to take Gillette products to developing markets like China, it will increase its sale. However, if they do after sharing their merged R&D costs, the company will develop the product better and meet better customer needs. (Dissertation Structure)
· A stronger lineup of brands
Gillette holds a 70 per cent global market share of razor blades. The strong competitive position and the successful persuading capability of the consumers make Gillette a high price pint personal care item. Moreover, the brand has highly loyal customers. Acquiring Gillette will help Procter and Gamble get a stronger team of brands in the consumer products sector with a potential chance of perpetuity.
· Generate additional opportunities for economies of scale
The vast market share of Gillette combined with the Procter and Gamble’s internationally spread out distribution system is a tremendous force in the market. Their combined effort can reduce the per-unit cost of production and increase the net present value of their estates. It will help them to achieve higher economies of sale.
· Enhance relationships and bargaining power with retail buyers
Gillette’s powerful competitive position in the consumer product industry will give the brand, and Procter and Gamble increased their bargaining power over the retailers. Acquiring Gillette will give Procter and Gamble a stronger position in the market. Moreover, the amalgamation of the portfolio will strengthen the interpersonal relationship between the companies.
Procter and Gamble acquired Gillette in 2005. It could have been for possible reasons like commendatory strengths in product innovation and sale, more robust lineup of brands, generate additional opportunities for economies of scale and enhance relationships and bargaining power with retail buyers.
Procter and Gamble (NYSE:PG) is getting ready to acquire Gillette (NYSE:PG) in a deal worth $57 billion. This is quite a hefty price tag and P&G will have to shell out a significant amount of its cash as part of the deal. But the company is comfortable with it and believes this is the right move. The acquisition of Gillette will strengthen P&G’s business in the global razor market. With the acquisition, P&G will have Gillette’s brands, including the immensely popular Fusion razor. Procter and Gamble is the world’s largest consumer-products company, with a market capitalization of $193 billion. Gillette, on the other hand, is the world’s No. 1 razor maker, with a market capitalization of $47 billion. Now that Gillette has agreed to sell itself to P&G, it will become a wholly-owned subsidiary of the corporation.If you need more details see here,https://casinosnotongamstop.online/
Procter and Gamble should definitely buy Gillette. Gillette is a household name but the company has lost its way. The company has failed to keep up with the changing times and slipped from its prime. P&G has the resources as well as the expertise to revive Gillette, and I really wouldn't be surprised to see Gillette become part of P&G's portfolio by the end of the year. Also, P&G has been trying to increase its exposure in men's grooming for a while now, and Gillette does that perfectly!
-------------------------------------------------------------------
https://rodeopoker.net/review/admiralshark/
Procter & Gamble seem confident that they can acquire Gillette, as they are making lots of effort to acquire Gillette. They are quite confident about the deal. Procter & Gamble believe that their products complement Gillette's, and that the deal will be good for their shareholders, especially when the market is favorable. On the other hand, Gillette is not willing to accept the offer, as they think that the offer is below their expectations.If you need more details see here,https://nongamstopcasino.uk/
Fashion Courses Online… [...]here are some links to sites that we link to because we think they are worth visiting[...]… homelivingpets
I wish I had a dime for every bad article I’ve read lately. I also wish other writers had your talent and style. Thank you. https://dailyworldaffairs.com/
*Can I just say what a relief to find someone who actually knows what theyre talking about on the internet. You definitely know how to bring an issue to light and make it important. More people need to read this and understand this side of the story. I cant believe youre not more popular because you definitely have the gift. discusscurrentnews
I think other website proprietors should take this internet site as an example , very clean and fantastic user genial style . https://groomingflowerideas.com/
Paper rolls… very great read you know alot about this subject i see!… allsportschoice
Just added this blog to my favorites. I enjoy reading your blogs and hope you keep them coming! https://gosportsfantasy.com/
Hey! Good stuff, please keep us posted when you post something like that! getfashionskills
Enjoyed reading this, very good stuff, thankyou . https://theshoppingaround.com/
There are some interesting cut-off dates on this article but I don know if I see all of them center to heart. There is some validity however I will take maintain opinion until I look into it further. Good article , thanks and we want extra! Added to FeedBurner as effectively itfashionworld
There are some attention-grabbing points in time in this article but I dont know if I see all of them middle to heart. There may be some validity however I will take hold opinion till I look into it further. Good article , thanks and we wish extra! Added to FeedBurner as well https://trendingtechhere.com/
Properly, that is great, yet consider further options we’ve got here? Could you mind submitting an additional article relating to them also? Many thanks! technologynetworkonline
Hiya! Fantastic blog! I happen to be a daily visitor to your site (somewhat more like addict ) of this website. Just wanted to say I appreciate your blogs and am looking forward for more to come! educationcareeronline
I just added this feed to my bookmarks. I have to say, I really enjoy reading your blogs. Thanks! https://shareeducatonideas.com/
Paper rolls… very great read you know alot about this subject i see!… http://travelsmartvacation.com/
hi, your site is fantastic. I truly do many thanks for operate https://travelwithtouragent.com/
hi, your site is fantastic. I truly do many thanks for operate https://travelwithtouragent.com/
Wow, wonderful blog layout! How lengthy have you ever been running a blog for? you make running a blog glance easy. The total look of your web site is magnificent, well the content material! healthmaintaintips