P&G: Innovation, Business Models, and Sustainable Development

This essay examines the role of innovation in driving business model sustainability, focusing on Procter & Gamble (P&G) as a case study. It introduces P&G, its business model, and the concept of business model disruption, highlighting the impact of globalization and technology. The essay analyzes P&G's smart connected devices, such as Oral-B Genius and Amazon Dash, considering both opportunities and threats like data theft and increasing production costs. It further explores P&G's resources, capabilities, value proposition, key partners, activities, customer relationships, segments, resources, and channels within the business canvas framework. The essay concludes that P&G should focus on extensive marketing and promotion to increase the penetration of its smart devices, emphasizing the importance of business model innovation for long-term sustainability.

Innovation and
Sustainable
Business
development

Innovation leads to
sustainability of Business
Momentum

P&G-Company Introduction
◆ Founded in the year 1837 by William Procter.
◆ One of the largest producer of Consumer goods
in the category of ;Cleaning agents, Personal
care products, Beauty care and Personal
hygiene products.
◆ The company is present worldwide, except Cuba
and North Korea.
◆ Employees over 95,000 people and earned a
revenue of 10.50 Billion USD in the year 2016

Business Model- Definition
◆ Business model is company plan
to generate revenue and make
profits out of it.
◆ It mentions the product and
service offering of the company
with the translation to produce,
plan and sells the goods.
◆ The focus of Business plan lies on
the pillars of value creation, value
delivery and value proposition.

Business Model Disruption
◆ In the present day context the average life of
Business models have reduced significantly.
◆ Business model disruption is creation of
innovation leading to the creation of a new
market and a value network which eventually
disrupts the existing business model and
practices.
◆ Globalization, technology advancement and the
consistent need of the society to get better
products and services are drivers of disruption
model.

Opportunity
◆ The Oral B Genius and
Amazon Dash devices are
two most phenomenal
smart devices of P&G.
◆ The opportunities are
increase in proliferation of
the technology, increasing
sales revenue,
contributing to the society
and first mover advantage
for the company
Smart Connected Device of P&G-
Opportunity and Threat Threats
◆ Every technology has a
threat associated with it,
the threats associated with
the smart devices of P&G
are:
◆ Data Theft
◆ Increasing production cost
◆ Scattering of the existing
customers base.
◆ Relative advantage to the
competitors.
◆ Less awareness of the
technology can hamper the
company’s profit margins

Aspect of Business Canvas
Resources and Capabilities
◆ Resources and
capabilities of P&G help
in creating and
delivering value to its
customers. The same is
achieved by:
◆ 20 Manufacturing plants
in the US.
◆ Extensive distribution
network
◆ Large brand portfolio.
◆ Plethora of offline retail
Value Proposition
◆ Value proposition can be
understood as the value
offered to the customer
by the product offering
of the company. Value
proposition for P&G are:
◆ Huge presence in retail
stores.
◆ Superior quality
products.
◆ Leading brand in several
category.

Key Partners
 Plethora of
Brands brands i
Olay, Head &
Shoulders,
Dawn, Venus.
 Media and Ad
Agencies
 Suppliers
 Retailers and
distributors
 Sponsors
Key Activities
 Manufacture of
consumer products
under different
brands.
 Distribution
 Marketing
 Research and
development
 Branding
Value Proposition
 Number of
personal care
and health care
products
 Products with
superior
quality
 Leading
brands
 Immense
presence in
retail stores.
Customer
Relationships
 Excellent
customer
experienc
e
 Brand
awareness
 After
sales
response
from
customers
 Discounte
d coupons
and offers
 Online
availabilit
y of
products.
Customer
Segments
 Mass
Population
 Different
targeted
audiences for
different
product
segment i.e.
men, women
and kids.
Key Resources
 20 manufacturing
plants in 20 states
of United States.
 Huge brand
portfolio
 Human Resources
 Extensive
distribution
Channels
 Grocery Stores
 Distributors
 Baby shops
 Shopping malls
 Promotion and
advertisement.
Key Partners
 Plethora of
Brands brands i
Olay, Head &
Shoulders,
Dawn, Venus.
 Media and Ad
Agencies
 Suppliers
 Retailers and
distributors
 Sponsors
Key Activities
 Manufacture of
consumer products
under different
brands.
 Distribution
 Marketing
 Research and
development
 Branding
Value Proposition
 Number of
personal care
and health care
products
 Products with
superior
quality
 Leading
brands
 Immense
presence in
retail stores.
Customer
Relationships
 Excellent
customer
experienc
e
 Brand
awareness
 After
sales
response
from
customers
 Discounte
d coupons
and offers
 Online
availabilit
y of
products.
Customer
Segments
 Mass
Population
 Different
targeted
audiences for
different
product
segment i.e.
men, women
and kids.
Key Resources
 20 manufacturing
plants in 20 states
of United States.
 Huge brand
portfolio
 Human Resources
 Extensive
distribution
Channels
 Grocery Stores
 Distributors
 Baby shops
 Shopping malls
 Promotion and
advertisement.

Conclusion
◆ Business model is the plan of company to
generate revenue and profits to achieve
business sustainability in the longer run.
◆ Business model disruption is the innovation
which leads to creation of a new value
network leading to new market thus
disrupting the existing system.
◆ P&G to focus on extensive marketing and
promotion to increase the penetration of its
smart devices.

Thanks!