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Essay / Research Paper Abstract
This 3-page paper discusses Proctor & Gamble's vertical integration, how it will impact its distribution channels, and whether it will be successful. Bibliography lists 4 sources.
Page Count:
3 pages (~225 words per page)
File: AS43_MTprgamble.rtf
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Unformatted sample text from the term paper:
M.O. was not direct sales, but rather, sales through third-party retailers. In recent years, however, the Cincinnati, OH company is moving more toward
vertical integration. Its buy of Gillette in 2005 helped make the company among the largest in the world in terms of consumer goods, adding razor blade and other personal care
items to the P&G roster. Along with the buy, P&G is also cutting some brands that simply dont have much more staying power (McCracken and Byron, 2009).
Also in recent years, the company has acquired Zirh, a high-end mens shaving accessories maker and distributor and Art of Shaving, a high-end retailer that sells
"luxury" razors for as much as $300 a piece (Marino, 2009). The company also is moving into the car wash business, offering car washes under its Mr. Clean brand (Holthaus,
2009) Clearly, P&G, with this strategy, is moving from its image as a soap manufacturer to a manufacturer, distributor and retailer of a
variety of products (Holthaus, 2009). The question we need to ask ourselves here is whether P&G has the expertise to move into
the direct channel of distribution. Another question we need to address is whether sales through the direct-to-retail distribution channel will cannibalize sales from its current methods of distribution. The answer
to these questions, respectively, is yes and no. Yes, Procter & Gamble can move into the retail arena. It doesnt necessarily have "expertise,"
but it does have the brand name and longevity. The only question that might crop up is whether people can make the leap in their minds from a company that
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