P&G is faced with the question of whether they will be able to introduce and market SK-II, a beauty product developed in Japan, on a global scale. P&G has, in the past, successfully introduced products developed in other global regions to international markets successfully, however, with the introduction of SK-II, it will be one of the first times that they will attempt to introduce a beauty product on a global scale and break into new markets. In Japan, where SK-II was developed, the beauty and cosmetics industry was a $10 billion industry; however, more than 20% of the market share was taken by Shiseido while P&G's Max Factor held a 3% market share, making the company "a distant number-five competitor" to Shiseido. Additionally, P&G must contend with their desire to expand into emerging markets and develop a marketing and organizational strategy that will allow them to do so successfully.
In order to introduce SK-II beauty products on a global scale, P&G must first overcome a variety of issues. These issues include the introduction of a product into a culture with different consumers, distribution channels, and competitors. On top of this, P&G had to restructure its organization to make it more efficient and be able to collaborate among different regions worldwide. P&G also had to overcome the fact that it could take more than a decade for new products to be introduced on a global scale, which was further impacted by limited profits and the autonomy of national subsidiaries.
These issues and obstacles were gradually overcome by de Cesare actions and organizational vision, which caused P&G to fall into the alternate-generation phenomena. This phenomena occurs when a first generation builds a successful business and the second generation maintains the business practices put into place by the first generation,...
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