Procter & Gamble vs Unilever: A Case of Corporate Espionage


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Case Details:

Case Code : BECG036
Case Length : 16 Pages
Period : 2001 - 2004
Pub. Date : 2004
Teaching Note :Not Available
Organization : Procter & Gamble, Unilever
Industry : FMCG's
Countries : USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Evolution of Corporate Espionage

The history of corporate/industrial espionage probably dates back to the sixth century when Justinian, the Byzantine emperor hired two monks to visit China.

He wanted them to gain an understanding of silk production in China and to smuggle silkworm eggs and mulberry seeds out of that country to break its worldwide monopoly on silk production. The monks smuggled these eggs and seeds out of China in hollow bamboo walking sticks.

Subsequently, in a few years the Byzantine empire replaced China as the largest silk producer in the world. Over the centuries, industrial espionage practices continued to play a major part in the development of many countries. In the 18th century, alarmed by the industrial and military supremacy of Great Britain, France sent its spies to steal the latter's industrial secrets...

P&G and Unilever

Unilever, which entered the US in late 19th century, was one of the largest foreign multinationals in the country. It competed directly with market leader P&G in many segments of the household and personal care products markets.

Over the decades, the rivalry between these two companies kept on intensifying as both of them expanded to the major markets in the world. In the early 21st century, while P&G dominated the US household and personal care market, Unilever dominated the European household and personal care market.

In Asia, these companies had equal dominance, with both being market leaders (in household and personal care products) in different Asian countries. They also fought fiercely for market dominance in other parts of the world. P&G and Unilever competed in every aspect of their operations such as new product development and launches, pricing and promotional strategies and entering new markets...

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