Once the overall market is pondered upon concerning the entire product portfolio, competitors have a strong competitive position, however, there are a number of must stock brands for P&G and Gillette that promise a significant market share and as a result of the merger, the turnover is more than $21 billion with the ratio divided as $16 billion and $5 billion respectively (Case No Comp/M.3732 25).
With such an acquisition, the parties have been able to identify where it would be appropriate to use ‘mixed bundling’ (selling two significant products a joint purchase) , ‘pure bundling’ (selling a weak product with a must stock strong one) and various forms of promotions that would get more shelf space.
P&G has a strong supply chain which could be proved through the example of their partnership with Wal Mart for the sale of products since 1988 (Schonberger 159). Through this joint venture both have been able to have combined scorecards and performance measures as a result of which demand forecasts can be made as accurate as possible. Therefore, Gillette has now been inculcated into this procedure.
Moreover, they have a large global scale due to which they cater to the needs of various customer relationship groups and they have eventually been able to focus operations on a number of locations and thus reduce adapt to cost cutting measures (Mirza, Kaur, Khatri and Sigley 5).
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