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Procter & Gamble utilizes cost leadership by leveraging its size and scale to keep production costs low and charge competitive prices. This allows them to offer a product similar to competitive offerings but at a lower price. On the other hand, P&G primarily competes as a differentiator. They seek to find new product technologies or untapped customer segments. This requires a robust research and development arm and a deep understanding of customer behavior, both of which P&G possesses.
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Products and services "win" when they are either differentiated (and can charge price premiums), or when they have "cost leadership" and can offer a nearly similar product to competitive offerings but charge significantly less. Due to its size and scale, P&G can keep production costs low and charge competitive prices. But it primarily competes as a differentiator, seeking to find the new product technology or customer segment that is untapped or unserved. Achieving this requires a robust research and development arm, as well as a deep understanding of customers' behavior. P&G has both.
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Are you playing the game or are you playing to win? Develop a winning strategy for your organization with a recipe for success from former Procter & G...
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