| HBS Case Collection
(Revised from original version)
Procter & Gamble Japan (A)
Ten years after entering Japan, P&G had accumulated over $250 million in operating losses on declining annual sales of $120 million by 1983. The decision facing the president of P&G International: exit, retrench or rebuild the operation? Ironically, the initial entry was a success story with P&G Japan achieving an operating breakeven in their fifth year and market leadership in a number of categories. However, in the late 1970's market share and profit in all categories declined disastrously. Management changes failed to reverse the trends until an objective examination of the entry strategy, approach to the Japanese consumer, competition, technology and internal organization were made. By 1983, accelerating losses forced P&G to decide whether to exit or stay.
Market Entry and Exit;
Beauty and Cosmetics Industry;
Consumer Products Industry;
Yoshino, Michael Y. "Procter & Gamble Japan (A)." Harvard Business School Case 391-003, January 1992. (Revised from original September 1990 version.)