HUL N P&G

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Porters generic strategy

The first approach is achieving a high asset turnover. In service industries, this may mean for example a restaurant that turns tables around very quickly, or an airline that turns around flights very fast. The second approach is achieving low direct and indirect operating costs. This is achieved by offering high volumes of standardized products, offering basic no-frills products and limiting customization and personalization of service.

The third approach is control over the supply/procurement chain to ensure low costs. Achieved by Bulk buying to enjoy quantity discounts, Squeezing suppliers on price, Instituting competitive bidding for contracts, working with vendors to keep inventories low using methods such as Just-in-Time purchasing or Vendor-Managed Inventory.

Strategic business unit of HUL


SBU of HUL : SBU of HUL can be its different product line such as: Detergent Soaps Dish wash Hence here are the various product line that play as unit for HUL as SBU.

Strategic Business Unit of P&G


Three main SBU of P&G are:
Household and personal care Food consumer Heath care products

Recent merge with Gillette


Competitive advantage

Dominant firms
Procter and Gamble, Nestle, Unilever, L Oreal, Colgate-Palmolive, Revlon, Bic, PepsiCo, Sara Lee, and Kimberly Clark. Success factors:
positive brand image availability of products the ease of access

Long term objective of HUL & P&G


Generic Strategy: Differentiation
Grand Strategies:
Innovation Conglomerate diversification Concentric diversification Strategic alliance

Scenarios likely to prevail: Best Likely worst

Corporate level strategy of HUL & P&G


Best Case Expand to new mkts Grow by 30% Worst Case Lose Mkt share Fail to expand Most Likely Grow by 10% Continue current corporate strategies

Business Level Strategic Alternatives:


Generic Options Low Cost Leadership Differentiation Pros/Cons of both Rivals Unilever Colgate-Palmolive GRAND BUSINESS STRATEGY OF P&G:

Low Cost Leadership


Concentrated Growth Market Development

Differentiation
Product Development Innovation

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