When margins are high competitors tend to enter the market. The industry that P&G operates in is fairly easy to enter. There are many substitutes for Tide as there are many substitutes for Coke. P&G must be very careful to maintain the prestige and quality of the brand so that competitors can not erode its influence on consumers.
Compare the strengths and weaknesses of P&G's resources and capabilities to that of Eastman Kodak (Case 7). These companies are in very different industries. How does this affect strategic analysis of resources and capabilities?
The first major strength of P&G relative to Kodak is its margins and cost structure. P&G has the benefit of increasing earnings without having a corresponding increase in capital expenditures. Eastman Kodak however, as the case indicates, was operating in an industry with shrinking margins. Likewise, for the company to increase earnings, it had to spend more on capital expenditures. These expenditures however didn't bear fruit as the prices of Kodak's prices began to decline as the cost of providing those products increased. In addition, the case indicates that Kodak experienced intense competition from many segments of the market. Many companies including GE, Sony, Fuji Films and others were all eroding Kodak's market share in the digital imaging market space. This intense competition combined with shrinking margins led to a path of insolvency and eventually bankruptcy for Kodak. P&G however, did not have as much competition as that of Kodak. For one, as mentioned earlier, P&G had...
The digestive fluids that are secreted by the stomach glands aimed at breaking down solid food and to kill bacteria in the stomach are referred to as gastric juices. Gastric acid is produced by the gastric parietal cell located on the walls of the stomach. The region where the gastric juices are secreted into the lumen is the most acidic environment in the human body and is known as the
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