i want detailed answer for this Select a Multinational Corpo

i want detailed answer for this

Select a Multinational Corporation (any you choose) and do Overview of their Strategies For Example are they a Monopoly? What is their Pricing Strategy? Who are the competitors? Are they conglomerates? Mergers and Acquisitions? Market Power? Anti trust issues?

Solution

The Procter & Gamble Company (P&G), incorporated on May 5 1905, provides consumer packaged goods. The Company operates in five segments under

·         Beauty,

·         Grooming,

·         Health Care,

·         Fabric Care and Home Care, and

·         Baby Feminine and Family Care.

The Company\'s products are being sold in over 180 countries and territories. Proctor and Gamble works in a monopolistic competition market. There are large number of firms as competition, with free entry and exit in the market. With large number of firms in the market which ensures the product are differentiated from the other company. A few of the products manufactured by P&G even have nearly inelastic demand which ensures supernormal profits for the company but this supernormal profits acts as a motivator for rest of the firms to enter the market.

The major competition that P&G faces in its various segments are from:

Beauty - In the beauty segment, Avon is a major competitor to Proctor and Gamble, as are Colgate-Palmolive, Estee Lauder, Revlon, Coty, Elizabeth Arden, Inter Parfums Inc and Unilever. This segment accounts for 23% of Proctor & Gamble\'s net earnings.

Grooming - In the grooming segment, Proctor & Gamble\'s Gillette brand is the dominant market player. BIC is a major competitor with a large international presence. This segment accounts for 17% of Proctor & Gamble\'s net earnings.

Health Care - In the health care segment, major competitors include CCA Industries, Colgate-Palmolive, Church and Dwight Co., Ecolab, Stepan Company and United Guardian. This segment accounts for 9% of Proctor & Gamble\'s net earnings.

Fabric Care and Home Care - In the fabric care and home care segment, major competitors include Colgate-Palmolive, Unilever (UL), and Church and Dwight Co. This segment accounts for 26% of Proctor & Gamble\'s net earnings.

Baby Feminine and Family Care - In the baby, feminine and family care segment, major competitors include Colgate-Palmolive, Unilever, and Church and Dwight Co. This segment accounts for 25% of Proctor & Gamble\'s net earnings.

The three top competitors for P&G are:

·         Johnson & Johnson

·         Kimberly-Clark Corporation

·         Unilever

Procter & Gamble has acquired a number of companies that diversified its product line and increased the company’s profits. The acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton\'s Old Spice, Max Factor, the Iams Company, and Pantene

In 2005, P&G acquired the largest acquisition in its history by purchasing Gillete brand for $57 billion. This deal not only included Gillete razors but also Duracell batteries and Braun and Oral-B brand dental products. This deal gave P&G even more control over shelf-space in retailers all over the world. Combining the power or P&G and Gillete increased competition for the smaller rivals.

In July 2015, the company announced a merger of 43 of its brands with Coty, a beauty product manufacturer, in a US$13 billion deal.

Proctor and Gamble have been fined for price fixing in the year 2001, with uniliver, the fixing of price made it difficult for the other companies to enter the market. In 2002, P&G was sued for its ads falsely suggesting to the consumers that the drug Prilosec could cure heartburn in a day. In December 2005, the Pharmaceutical division of P&G was involved in a dispute over research involving its osteoporosis drug Actonel. There were the cases in the court for toxic shock.