1. Should Paolo recommend to the beauty-care GBU that SK-II become a global brand?
Priced at over $100 a bottle, the SK-II is not a typical P&G product, but its successful introduction in Taiwan and Hong Kong has Paolo thinking the brand has global potential. Baring in mind all of the above there are a few issues that Paolo should consider:
1. Organize the Company Along Product Lines not Geography
2. Continue to be the Technology Leader
3. Roll Out to Other Asian Countries
4. Sell off the SK-II Product Line
As a premium and prestige offering. P&G has gained significant knowledge transfers from SK-II development and further, has successfully tapped the Japanese market and has developed a loyal user-base in Taiwan and Hong Kong. With its phenomenal success, it is only logical that P&G consider rolling-out the SK-II product-line to the international market. However, while there is significant worldwide growth potential within the $9 billion prestige skin-care industry, based on recent organizational changes, new corporate priorities, and thorough market assessment, P&G must base its decision on current resources and capabilities to effectively maintain profitability. In analyzing the three options of Chinese expansion, European roll-out, and further growth of Japanese market, Paolo should recommend P&G to continue concentrate its efforts in Japan Taiwan and Hong Kong to further penetrate and grow its share.
In Addition Paolo may suggest re-evaluating this strategy in one year, and perhaps conducting through this year markets analysis in territories and countries were SK-II may succeed.
2. Does O2005 support or impede SK-II's transfer worldwide?
There is a dilemma here.
On a conceptual strategic level O2005 supports a worldwide rollout. Yet since this rollout seems to still take place and cause more havoc than expected many executives are confused and therefore the potential for failure is enhanced. Thus, even though everyone may have a good...