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How practor & Gamble became a fortune five hundred company.

Updated on August 31, 2012

PG is the forefather of many comanies that are now enjoying the return on their investments.

William Procter a candle maker & James Gamble a soap maker, were both immigrants from England who settled in Cincinnati where both men married sisters. The consequence of the panic of 1837 had caused competitive rivalry to heats up between Proctor & Gamble. A family meeting was called by their father- in – law, who succeeded in convincing his new sons to become business partners.

Since both businesses utilized similar resources, a horizontal integration had been taken flight. On October 31, 1837 as a result of the father in – law's suggestion, William Procter and James Gamble became P&G Production, Inc.

The company is now a multi billion dollar business that operates over more than 70 countries around the world. The company is presently part of the fortune 500 list, of America’s Top Performing Companies.

Most people who are not aware of the name Proctor & Gamble are very well aware of their products. One of the many reasons why PG products have done so well had to do with the fact that they started off manufacturing products that were necessary for everyday living conditions. In that sense, selling a product or services that cater to necessities (one’s needs) can never be a bad investment under a growing economy, because even if the economy had not done so well their products would still sell.

This company takes a transnational approach toward marketing. It is this approach that has granted them the reputation as the world largest household products manufacture. This is a company that sells products catering to one's personal hygiene and health; in this case the chances for success are always high.

Some of their products are Sunny Delight, Febreze, Bounty, Tide, Crest, Pampers, Duracell, Olay, Gillette and I can surely continue with more. Gillette is one of the least recent purchases of PG. They are known in the corporate world as a buyout company. PG is the forefathers of many companies that are now enjoying the return on their investments. Many small enterprises have in the past turned to P&G for a helping hand.

Proctor & Gamble also channel their resources and capabilities in many different types of business. They’re known in the entertainment industry as one of the world’s most influential advertising companies. They have managed to gain access to interest group of the entertainment industry by developing a software called ( IMDbPro) an Internet Movie Data Base. This software was designed exclusively for people who are in the entertainment industry, especially those who wishes to promote their talent through PG.

In Sept. 2007 the company had engaged in an e-commerce venture that would run totally independent from the headquarter. The stand-alone company would be named which will deliver custom design, beauty-care products sold ordered the Internet. Unfortunitly, PG has closed the door on for reason pertaining to long term strategic goal. See detail at DMnews.

More interestingly, they’re also a pharmaceutical company. On November 2000 PG announced their donation of a chemical patent to Vanderbilt University. This patent is described as a chemical compound which could heal ulcers while it relieves pain. This chemical compound is known as COX-2 Inhibitor and it is part of the same family tree as Celebrex and Vioxx.

I think by now most of us knows the history of Vioxx since it had been removed from the market on Sept. 2004. Vioxx was an anti-inflammatory drug that was approved by FDA in May 1999 for the relief of the signs and symptoms of arthritis. However, before the removal of Vioxx from the market, the drug generated billions of dollars in revenues. Its affiliate Celebrex on the other hand is still in the market.

Proctor & Gamble' incentive for producing a drug of the same root as Vioxx is obvious. But what’s puzzling to us all is how this drug will be compare with Celebrex, Naproxen or Ibuprofen. In this case, PG had managed to apply a product differentiation strategy that would differentiate their product with that of their competitors on the basis of effectiveness and non- life threaten.

Some would say that it was this strategy that had help PG gain brand loyalty which had contributed in the elevation of their status as one of the fortune five hundred American companies. PG has diversified itself into a gigantic company with multiple resources and capabilities. And it is because of the implementation of their strategies that this company was able to succeed as they did.

However, others would look at this history and concluded that Vanderbilt University did contribute to Proctor & Gamble's success or perhaps it was the father n law's decision to join the two brothers to form a corporation which had triggered their success. But whichever case we choose to look at this history, at the very bottom it was their hard work that got them that far. In that sense both partnership and hard work had a lot to do with P&G success. It's not a "one size fit all" most corporations are built with the collaboration of individuals working independently until they form partnership sharing similar ideas and goals.


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