This paper examines two related topics in global business strategy. The first section analyzes Procter & Gamble's challenge of introducing its SK-II beauty product line — originally developed in Japan — to international markets, addressing obstacles such as cultural differences, distribution challenges, organizational restructuring, and competitive pressures. It evaluates how P&G's leadership embraced a third-generation revitalization model to centralize R&D and coordinate simultaneous global product launches. The second section summarizes Rosabeth Moss Kanter's article "Transforming Giants," which identifies the shared values, guidance systems, and organizational pillars that enabled companies such as IBM, CEMEX, P&G, Omron, and Banco Real to achieve global success while empowering local innovation.
Procter & Gamble (P&G) faces the strategic question of whether it can successfully introduce and market SK-II, a beauty product developed in Japan, on a global scale. P&G has previously introduced products developed in other global regions to international markets with success; however, the introduction of SK-II represents one of the first times the company has attempted to launch a beauty product globally and break into entirely new markets. In Japan, where SK-II was developed, the beauty and cosmetics industry was valued at $10 billion. More than 20% of that market share was held by Shiseido, while P&G's Max Factor brand held only 3%, making the company a distant fifth-place competitor. Additionally, P&G had to contend with its ambition to expand into emerging markets and develop a marketing and organizational strategy capable of supporting that expansion.
In order to introduce SK-II beauty products on a global scale, P&G first needed to overcome a variety of significant challenges. These included introducing a product into cultures with different consumers, distribution channels, and competitors. Compounding these difficulties, P&G also had to restructure its organization to improve efficiency and foster collaboration across different regions worldwide. The company further had to address the reality that bringing new products to global markets could take more than a decade — a timeline made worse by limited profits and the strong autonomy exercised by national subsidiaries.
These obstacles were gradually overcome through de Cesare's actions and organizational vision, which led P&G into what can be described as the alternate-generation phenomenon. This phenomenon occurs when a first generation builds a successful business, a second generation maintains those practices but allows the business to stagnate, and a third generation revitalizes and propels the organization forward. De Cesare embraced this third-generation mentality by helping to consolidate P&G regionally and by strengthening the organization's research and development capabilities to better compete with rivals. This included expanding P&G Japan's R&D resources from 60 people to a size that could more appropriately compete with Kao's 2,000-person research and development team — one of P&G's primary competitors in the Japanese market.
To successfully introduce products on a global scale, P&G should develop products concurrently at a centralized R&D center. Additionally, marketing plans should be specialized based on region and consumer type. These marketing strategies must account for the culture of the target consumer, how products will be distributed, and where they will be made available. Once these steps are in place, products should be released simultaneously across markets. This simultaneous market penetration will reduce competitive pressure in the short term and allow P&G to generate profits before substitute products emerge.
If P&G is able to centralize its research and development, technology, and marketing strategies, it will be positioned to introduce products to consumers globally at the same time — giving it a meaningful competitive advantage. This approach will also allow P&G to reduce its reliance on subsidiaries while increasing overall profitability. As long as future CEOs and regional managers continue to implement and build upon de Cesare's vision, P&G is well positioned to remain a leading corporation in the beauty industry and beyond.
"Centralized R&D and simultaneous market launch strategy"
The implementation of guidance systems by these enterprises has made adaptation both a competitive necessity and a benefit to society and the environment. Kanter found that shared values, principles, and platforms — combined with global networks that facilitate collaboration across both long distances and close physical locations — benefit enterprises in several important ways. Specifically, these systems empower partner enterprises to operate autonomously, promote localized innovation, build a broader foundation for partnership development, and encourage the exploration of new opportunities. The article concludes that implementing standardized values, practices, and principles encourages individuals to focus on developing localized innovations that can then be scaled globally. It also promotes the view that small enterprises succeed in part because of the mutual respect they cultivate with their employees and partners, as well as through shared commitment to the values they embody.
In this article, Kanter sets out to define and analyze the pillars of a new model of doing business, as established by enterprises such as IBM, CEMEX, Procter & Gamble, Omron, and Banco Real. Kanter found that these enterprises have achieved success by creating guidance systems that can be adopted by other enterprises across the globe.
"Shared values, autonomy, and partnership development"
"Limitations and unanswered questions in Kanter's model"
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