After the switch of the CEO of P&G, there has been a slight change in its strategy in 2013. In 2013, the consumer goods giant mainly focus on slashing costs, taking a competitive advantage and making innovations to attract consumers.

In terms of cutting costs, the company has launched a plan of slashing non-manufacturing positions which is predicted to save $ 3 billion.Using less expensive packaging materials is also one of the ways to save money. The giant company has cut its capital spent on marketing meanwhile. These solutions seem to be effective which can be proved by its growing market share. Based on the macro environment, due to the economic recession in the States, people spend their money more carefully than before, they are more likely to purchase cheaper products. Thus, gaining a low price advantage these days is very necessary. Some individuals would doubt that cutting the cost of marketing leads to less sales. However, P&G has made a fairly smart way to solve this: advertise for a variety of brands at once.

In order to make a better and continuous differentiation, P&G never stops innovation, keeping close relation with outside company and virtual technology. One of the latest innovative products of P&G is a kind of diaper of Swaddlers which can keep babies dry for 12 hours.

Reference: P&G CEO Switch Will Not Lead to Big Strategy Change,REUTERS( May 24th, 2013)(http://www.reuters.com/article/2013/05/24/us-procter-ceo-call-idUSBRE94N0G420130524 )

                    Strategic Focus, Company Strategy (http://www.pg.com/en_US/investors/company_strategy.shtml)