Proctor & Gamble acquirement of Gillette
Date of Submission: October 12, 2011
1) There atomic number 18 a bout of factors that facilitated the merger between Proctor & Gamble and Gillette. However, there are also a number of areas that may not be in the best interest of the two companies. However, they both took the decent steps to evaluate the costs and benefits of the merger. One aspect that was a positive result of the merger was the international ties that both companies would be exposed to. While Gillette had been successful operating in India and Brazil, P&G had performed well establishing a market in China. By joining forces, both parties would have access to the others domestic and foreign markets. Creating an industry leader in their respective(prenominal) businesses would be mutually beneficial. They would be introduced to new markets and ultimately gain market share and bottom line. It was also give them importantly greater buyer power when relations with mass merchandisers.
Gillettes marketing strongpoint was reaching males while P&G had grasped getting in touch with females. By combining efforts, these two companies would be adequate to(p) to target and reach male and female consumers, olibanum capturing significantly higher market share.
The power that Wal-Mart holds with CPGs is crucial. Wal-Mart is able to dictate to these companies how they should price their goods. It is generally lower than the caller-out would like. However, that company has no strong say in the matter because if they requisite to have the goods in Wal-Mart stores, they have to comply with Wal-Marts rules. So, by Gillette and P&G merging, they would have more negotiating power when dealing with superstores like Wal-Mart and Target.
There were few negative aspects and concerns with the merger. Firstly, employees were very bear on with downsizing if the merger were to take place. There would inevitably be work force reduction because of overlap...If you want to get a full essay, order it on our website: Ordercustompaper.com
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