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Procter & Gamble- Internationalization Strategy

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About the document

Published date
documents in English
case study
9 pages
General public
2 times
Validated by
  1. Introduction
  2. To what extent P&G can be considered a multinational; a multi-domestic?
  3. Chronological and Incremental Strategy
  4. Expansion in the USA
  5. Entry modes in Canada and Europe
    1. A non-equity Mode: Indirect Export
    2. An Equity Mode: Wholly Owned Subsidiaries / Acquisitions
  6. Current strategy
    1. Strategic technologic alliances
    2. Emerging economies penetration
    3. From multi-domestic to global product strategy
  7. Conclusion

In 1837, in The United-States, William Procter, candles maker, and James Gamble, soap maker, got together to market their first branded product, the candles ?Star Candles' (Jean Boissonnat, 20/12/1993). As their business went along they started to broaden their range of products by buying new brands in the United States and by creating new products. Through the years the P&G company has set up an internationalization strategy, and in 2005 Procter & Gamble has been recognized in the Figaro (French newspaper) as the global leader in mass consumption products (Puech G., 29/10/09).

Today, P&G is a publicly owned company and is considered as one of the most significant multinational enterprise. To understand how Procter & Gamble became this significant multinational we have to describe its position in terms of its strategies to expand abroad.

In the first part, I will explain to what extent Procter & Gamble can be regarded as a multinational; and I will enlighten its characteristics that demonstrate its status as a multi-domestic. To display the statements above, I am going to analyze the following questions: Does P&G invest in value adding activities abroad? Does it focus on international resource bases? Does it control and manage production establishments located in at least two countries?

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