Managing With Analytics at Procter & Gamble Case Study Solution
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Many companies have implemented different ERP systems in their businesses to achieve the best possible outcomes. But P&G implemented a next level software integration system that not only combined all the information and helped managers understand the current situation but it also helped in understanding why something happened, and what can be done to prevent it or how can they find a way through it. The company had made innovations that will take the business analysts to the highest peak of success which will help business to succeed. It’s very important for the company to make decisions on time when they have a lot of competition around them. Business analysts provided the data to make those decisions in real time and compete at the full potential. Other companies keep the important information in ERP for the corporate level or for the top management but P&G had the analysis transparent and every one could view them. The IDS made business conference room like no other. The business room was so highly equipped with technology and people could view charts and diagrams to better understand their performance and how they need to improvise it. The big pictorial displays were attractive and understandable, the software was friendly to the people who used it and was easy to access.
Porter’s Five Forces:
Threat of new entrants:
The threat of new entrants is very low for P&G because this is a well-established and huge company, whoever wants to enter the company should have a huge amount of money and a differentiated idea to make its place in the highly competitive market.
Threat of substitutes:
The company has a lot of products in the market that are necessary for people in daily life, these products do not have substitutes just alternate brands. The customers’ needs them in daily life. Some products might have substitutes like snacks or beverages and so the threat is low to moderate for P&G.
Bargaining power of suppliers:
The suppliers do not have very high bargaining power as the company is huge and is widespread. There are a lot of suppliers supplying to the company and competition is tough amongst these suppliers.
Bargaining power of customers:
The bargaining power is low to moderate and this is because the company is operating in a very competitive market. They need to make sure they are serving their customers according to customer demands and the prices are as per the market.
Rivalry with Existing Competitors:
The company has a lot of competitors in the market for example Unilever. P&G has to make sure their strategies deals with the competition and stays ahead of them.
Conclusion:
P&G has taken a great initiative to implement the analytics in their business system. They are advanced and now have a competitive advantage over other companies. They have a lot of competition in the market and so now they can make instant decisions by analyzing the competitor’s strategies and make real time decisions. P&G has put its managers in a state of fear of being fired and in a state of embarrassment when they are unable to perform well and it shows on the statistics. The company should take their managers in confidence and tell them the benefits of this system and how they can use it for their own good. They should also give more trainings on how to use the system. The company needs to improvise and update the software as per the company’s needs.
Exhibit 1:
Exhibit 2:
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