"P&G Buys All of Its Spanish Joint
Venture." Businessweek.com. N.p., 20 July 2012. Web. 22 July 2012.
<http://www.businessweek.com/ap/2012-07-20/p-and-g-buys-all-of-its-spanish-joint-venture>.
P&G is trying to create a competitive advantage by buying
out the other half of their joint adventure. The joint adventure started in
1989 and has produced many products in the area of diapers and many other
absorbent compounds. Many of these products are used everyday all over the
world. The other side of the joint venture is choosing to sell their half to
Proctor & Gamble. Proctor & Gamble is using this decision to try to
gain more of the market share to their products that can be purchased all over
the world. If Proctor & Gamble is able to gain more of a market share
across the world than the revenue will increase and if Proctor & Gamble can
control the cost of sales to produce more products to be able to ship products
all over the world than the net profit of the company will increase with the
market share. Proctor & Gamble is purchasing the half that is owned by
Agrolimen group for about $1 billion according to Bloomberg Businessweek.
I think this is a good decision by Proctor & Gamble. A
major company must create its own success in the long run. With Proctor &
Gamble buying the Spanish half of the joint venture Proctor & Gamble are
taking control of the business venture. The idea that Proctor & Gamble are
wanting more of a market share of the market that the company competes in is
very good idea because it will bring in more consumers to their company.
I agree. I feel as though most of the household products I purchase are P&G. I've actually signed up to receive their mail outs and samples because it's a company I trust so much. I think that the more they purchase and put their name on the better, it means consumers will have a larger selection of products they can trust and P&G will keep collecting their profits.
ReplyDeleteI agree that by buying out the Spanish half it does give Proctor & Gamble a competitive advantage. It will allow them to make more decisions without as much input and in the long run they also get to keep the additional gain in money if there is one.
ReplyDeleteThis would be a great move for Proctor & Gamble. The increased market share will surely increase their revenues and their customer base will only continue to grow larger.
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