On the basis of this analysis, it can be recommended that P&G should first focus on improving its existing products and customer services in the already targeted markets before entering into new markets. Reason being, a dual strategy will bring critical challenges for the company which may become unmanageable in the short run and take the company into serious financial problems and competitive challenges (Ferrell & Hartline 2011). Conversely, if it chooses to improve its existing products and services in the near future and target new markets as a second strategy after some passage of time, it can reap benefits from both these strategies in a more effective way.
Q. 3: STRATEGIC DIRECTION
i. Product Development Options:
Keeping in view the internal strengths, core competencies, and resources of the company, the first strategic option in the next 3 to 5 years is to introduce new products that are not yet offered by its major competitors. It can invest in R&D to bring something unique which can not only attract potential customers, but also increase the company's competitiveness in its industry (Yale School of Management 2011).
ii. Market Development Options:
Alternatively, the company can target new markets for its existing products. It can find potential markets in those areas where the intensity of competition is comparatively lower than already developed markets. By entering a new market earlier than its competitors, P&G can establish its strong presence and capture the supply chain and distribution network of that market.
iii. Diversification:
The new product development option may be transformed into a diversification strategy if the new product completely introduces a new product line in the company's existing portfolio. That is, P&G can introduce a product which is not in its main business line -- thus, enabling it to enter and establish its presence in a related or unrelated industry in the next 3 to 5 years period.
iv. Alternative Development Option:
Another alternative strategic direction for the company is to focus on its existing supply chain and distribution network and make it more efficient for its business operations. The suppliers that provide necessary raw material to produce the highest quality of health care and personal care products must be paid an attractive commission in order to keep them tied with the company (Ferrell & Hartline 2011). Similarly, the distributors...
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