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P&G Porters and Swot

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Porter’s five forces Michael Porter developed a framework consisting of five competitive forces, which analyze how industry factors impact a company’s strategy. These factors are: threat of new entrants, power of buyers, power of suppliers, availability of substitutes and competitive rivalry. Threat of new entrants
There are many different barriers in the FMCG industry that a new entrant would have to overcome to enter. P&G has a huge competitive advantage over new entrants due to following : Established economies of scale: P&G has huge production capabilities and which has resulted in advantage over new entrants as it will be difficult for the new entrant to compete on cost, quantity produced and price. P&G also has the first mover advantage.
Distribution network: Access to existing distribution channels is a substantial barrier that new entrants have to face. Supermarkets and other retail stores have a limited amount of shelf space available for consumer goods. It is difficult for new entrants to fight for these shelf spaces as the brand recognition, consumer relationship of P&G makes it difficult for new entrants to get shelf spaces.
Legal barriers: Legal barriers can also make it hard for new entrants to enter the personal products industry. A new entrant has to overcome many regulations, laws, patents, and copyrights that they have to abide by when they are entering into an industry. It is a research oriented industry and hence has lot of copyright and legal issues. This almost eliminates the threat of a new entrant in the personal products industry.
Power of buyers Although P&G is an extremely large company, its future is dependent on its buyers. P&G is heavily dependent on Wal-Mart and its affiliates for generating a major part of its revenue. Sales to Wal-Mart and its affiliates have represented approximately 15% of its total revenue...

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