A: Procter & Gamble is pursuing a strategy of differentiation. it is their goal is build on distinctive competencies into the invest and dominate the marketplace through intense advertising and product recognition. Well known products such as Tide laundry detergent, Nyquil, Pampers, and Swiffer dusters would demonstrate the effectiveness of this strategy. Furthermore, most of us not only recognize their products but also use many of these items in our daily lives.
279.2 What kind of competencies does it possess that allow it to pursue this strategy? (SirShannon)
A: Procter & Gamble's strongest competency is its diligence to innovation. Never content to rest on its laurels, P&G continues to experiment and innovate. Often times these experiments end in failure, but then occasionally these experiments become a goldmine. Take for instance the Pamper brand. P&G's development team created a new absorbent material but intially had no idea how to use this innovation. Then someone had a vision that completely transformed childrearing. Another competency is its loyalty to its successful brands. Recent advertising blitzes for Charmin toilet paper, Tide laundry detergent, and Cascade dishwasher detergent confirm this loyalty. Finally, P&G also benefits from an alliance with the retail marketplace. Because marketers appreciate and desire innovation, and because consumers tend to be loyal to brand names, retailers continue to give P&G products prime retail space in their stores. This, in turn, gives P&G even greater product recognition.