Reference no: EM131383037
Critically read the discussion post below and respond. When responding, seek clarification, share your personal experiences that relate to their experiences, and provide feedback.
PEST stands for political, economic, social, and technological factors that are used to examine the environmental factors that will directly related to competition within an industry (Grant & Jordan, 2015). Whereas Porters 5 Forces Model focuses on how competition will affect companies profit by examining rivalry, new entrants, suppliers, customers, and threat of substitutes (What Are Porter's 5 Forces, 2017).
Both PEST and the 5 Forces affect the firm of Procter and Gamble. Through the PEST which can also be referred to as PESTLE when entering the realm of legal and environmental factors. As a primary opportunity associated with the PEST analysis using technology P&G can better reach their three sets of players: customers, suppliers, and competitors. A threat of theirs would be continuing to make poor environmental choices of how products are made and what it does to the surrounding area as they have done in the rest past in 2014. P&G could have several opportunities socially, politically, and economically to strengthen their local operation but to continue to build globally through several regions they have managed by research and development.
Applying the 5 Forces to P&G there are several opportunities. P&G was founded on and prides themselves on the valuing the customer, which includes third party involvement. P&G can continue to gain value of their customers. Operating in several different consumer segments P&G has several different competitors. Substitutes that their competitors may make is their biggest threat.
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