Proctor & Gamble’s organizational structure is one that is composed of corporate functions, market and selling operations, and global business units. Proctor & Gamble employs an oligopolistic competition in its operation, selling and marketing. This market structure allows Proctor & Gamble to supply commodities which are somehow slightly differentiated from the buyers’ perspectives. This makes the commodities produced and sold by other competiting companies to be close but not necessarily perfect substitutes. The reason being that the buyers do not perceive them as being identical. This scenario arises whenever a similar product is being sold under different brand names, whereby each of the brands is slightly distinct from the rest (Ashkenas, Ulrich, Jick & Kerr, 2015).
It is clear that Proctor & Gamble, same to other firms operating within the same industry, are termed to operate a specified product or brand. Proctor & Gamble is said to be oligopolistic based on the kind of brand it deals with. Now that a variety of brands are close substitutes, majority of other producers operating within the same industry are engaged in competing with each other.
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It can be seen that the relative market share shares of similar firms are related to Proctor & Gamble in either more or less ways. This implies that seller concentration in the major market is quire non-existent. It is proper to note that Proctor & Gamble does not encounter any economic or legal barriers against entry into the market. This is because any new firm is free and allowed to enter and even leave the market. It can be seen that product differentiation is the only element that differentiates Proctor & Gamble from the rest of other firms related to it. Being an oligo-poly, Proctor & Gamble is the dominant runner in the consumer products. Operating under oligopolistic market structure, the paper has illustrated how well P&G controls and manages a large number of customers (Ashkenas, Ulrich, Jick & Kerr, 2015).
Reference
Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). The boundaryless organization: Breaking the chains of organizational structure . John Wiley & Sons.
