Procter & Gamble’s business strategy.
P & G use some of the best and more useful business strategies. Firstly, P & G marketing department have done a good work by advertising and marketing new products. CEO of the company advertises using digital media because people use digital media widely in their lives and especially with the reputation of the company. Secondly, Cisco TelePresence conference room was very helpful for the company internally. TelePresence helps employees to communicate with each other and even with employees from other companies in other continents. P & G saves a lot of money by using this service and its one of the first company that starts using such systems for a conference. First of all as innovative company, it’s important to reduce the cost of traveling.
P & G is a strong trademark because of their effectiveness on collaboration and innovation. That’s why they create new ideas that lead to new products because their reputation does not allow them to create a similar or the same product with other companies. It’s a company that has to create innovative products in the market. The company spends a lot of money on research and development teams, this is very effective because 80 percent of their ideas lead to a successful product. A lot of money is invested in this field which turns out to be not very profitable for the company. The company trying to reduce research and development costs by trying to get information from outside the company. For example, they take feedback constantly from their customers if they are satisfied with the products or if they are not, in which way the product could be improved. P&G learned from their mistake and discovered that getting sources from outside of the company and using them is more effective (Discipline of Innovation, 2012). Its business strategy is one of the most efficient in a business world and a company that knows how to create innovative products and services.
2. How is P & G using collaboration systems to execute its business model and business strategy?
P & G uses some of the most effective collaborate systems for their business model and business strategy. They use internal and external factors for the collaboration of the company to get a better result.
The general collaboration of the company is researchers, marketers, and managers. These three main factors increase the company productivity. The social networking that they collaborate with, is very helpful for their managers. It helps them to advertise and sell their products by using this social networking. People use the internet daily and more time than they even talk to other people. Managers have the consumers and they have to find a way to approach them, a company like P&G identify the most efficient way to do it. Also, Microsoft makes helpful services that companies use to communicate. This service helps to set schedules and meetings, for sharing data, having easier access to data and this helps to improve some data or create new data. This service helps the manager getting quicker and successful decisions. In addition, the company creates a new search product from startup connect beam. This service is like using a blog but, to helps the employees to share and tag content. Employees of the company seem to trust more and more the idea to share their ideas on this blog. Also, InnovationNet helps the research and documents of the company to be more organized. If they want to find an old document they search on the system and find the document they want, this collaboration also saves time. Finally, the collaboration that P & G made was with Cisco TelePresence, proved to be the most beneficial. The specific service helps the company save money, time and results in faster decision taking. Because they can have a conference anytime, with no costs and without wasting time traveling etc. What we can understand from P&G strategy is that reduce cost and time, is a significant strategy for creating innovation and create competitive advantage.