Explore BrainMass

Attractiveness of Proctor and Gamble

How attractive (to P&G, existing competitors, potential competitors, and investors) are the industries Proctor & Gamble competes in?

Solution Preview

"What industries are Proctor & Gamble competing in?". As you probably know its hard (or at least very time consuming) to be precise, because Proctor & Gamble is one of the largest conglomerates and they have what is called a horizontal strategy. This means that, just like an individual might seek security by diversifying his or her financial portfolio, Proctor & Gamble has historically diversified its holdings by buying and (less often) creating a wide range of product lines.

What exactly constitutes an "industry" is somewhat vague (particularly outside of the classroom). There are two "intuitive" ways one can simplify the description of P&G's industry, though. In a macroeconomic sense, it seems clear that that they are in the "consumer goods" industry - however I think this discussion will benefit by being slightly more precise.

The second way to conceptualize it, which I shall use for this discussion, is by the 3 main segments ("industries") which Proctor and Gamble specializes in, within the overarching realm of consumable goods. According to the company's Investor Fact Sheet (, 2006)*, these are:

1. The beauty & health consumer goods industry
2. The household goods industry (everything from coffee to pet toys)
3. The razer and shaving accessories industry (P&G recently bought Gillette)

I know that the divide for the first two seems broad, compared to the third, but this reflects how the company and its investors view its three main industries. I'll discuss the attractiveness primarily for these three markets, but I will also comment on how sub-industries may vary (e.g. within household goods a different market ...

Solution Summary

This solution assists in understanding the attractiveness of Proctor & Gamle to competitors and investors.