Which company(ies) in your industry
are most global? What has been the key to their success in other countries?
According to Fortune
Magazine’s Top 500 list of Global companies, the following companies in the
Household and Personal Products Industry received these rankings:
80. P&G
136. Unilever
378. L’Oreal
P&G
Proctor and Gamble is
ranked number 80 in the Top 500 Global Companies. The key to their success had
been the creation of their Global Business Units (GBUs), Marketing Development
Organizations (MDOs), and Global Business Services (GBS). The GBUs mission is
to focus on the consumer, branding, and competitors. GBUs are responsible for
innovation, profitability and shareholder returns. P&G has stockholder
equity of approximately $62,000. The MDOs are in charge of the consumers and
retailers. They are responsible for knowing the market in which P&G
competes and integrating the innovation of the GBUs with each country’s
business plan. Lastly, but most importantly the GBS showcases P&G’s expert
partners to provide grand business support services at the lowest costs including:
streamlining operations, accelerating internal collaboration, and scaling systems, services, and processes
globally. P&G holds 20% in the global household care market which is worth
$200 billion.
Unilever
Unilever is ranked at
136. This can be attributed to their Unilever Leadership Executive (ULE) which
is a team of experts responsible for managing profits and loss, and delivering
growth across regions, categories and functions. Unilever focuses on partnerships
to achieve global success. Unilever works on an idea they call the Value Chain,
which is merely their extensive supply chain in which they are partnered with the
members of the chain, also known as vertical mergers. They also have strict
supply policies in order to be involved within the supply chain. Having such
insight into the supply chain allows them to be more efficient in manufacturing,
distributing, and selling their products. Unilever’s strategy of managing the
supply chain is the key to their success in the global market.
L’Oreal
Branding is at the heart
of L’Oreal’s success and position on the Top 500 at number 378. The brand name
and brand image has enabled L’Oreal to expand into the global market. L’Oreal
appeals to many different ethnicities which gives them a large advantage in
branding. Additionally, L’Oreal’s use of celebrity endorsement assists in their
brand recognition. L’Oreal prides itself upon research and development of their
products. Their success in this area is expressed through the brand quality and
loyalty of their consumers.
It's very interesting how all Of these top 500 companies use different strategies to maintain their ranking, and continue to grow. Now that I think about L'Oreal I do realize the power of their branding, and slogan "because you're worth it." After Learning of the many companies that P&G runs, it is easy to believe that they own such a huge part of the market.
ReplyDeleteIt's amazing how the focus on marketing has been the key to these companies success on a global market. It really shows just how powerful advertising can be. I could never imagine the US without L'Oreal, despite it not being a US company.
ReplyDeleteThe divisions and groups both P&G and Unilever have established within their companies truly demonstrates their focus upon expansion, growth, and dedication to their stakeholders. These strategies have truly put them ahead of their competition making them the global market leaders.
ReplyDeleteI found interesting Unilever's strategy of become partner with members of the supply chain. I think that this strategy is really important to success in the global market because Unilever can be partner with companies of different countries. For this reason, it can be easier for Unilever to success in the countries of their partners.
ReplyDeleteof its partners.*
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