Procter& Gamble in Pakistan
...ook, 2004) it plays an active role in not only safeguarding its own interests but also the interests of other developing countries. Pakistan joined GATT/WTO in the best national interest to secure market access for its exports under a preferential trading environment (government of Pakistan, Ministry of commerce). They have agreed, to implement systematic reforms designed to establish a more transparent and predictable regime for business dealings. It’s a member of South Asia Association for Regional Cooperation SAARC which include Seven States; Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and SriLanka. They launched the Integrated Program of Action (IPA) in the five agreed areas of cooperation: agriculture; rural development; telecommunications; meteorology, and health and population activities (Pakistan Profile, NTI website). With Pakistan’s entry into the WTO, their economy improved dramatically, bringing an increased interest on economic development, with a focus specifically on support for foreign direct investment (FDI) (Fact book, 2004). Overall, these initiatives will provide a more stable and predictable investment environment for P&G; however, they will still need to do constant market analysis to include an analysis of any internal or external factors that may affect their success in this market. Key Consideration Pakistan provides a good investment opportunity for P&G, due to the increasing consumer's preference for brand name products marketed by the company all over the world, Nevertheless, with the IP problem being of concern within Pakistan, P&G needs to still focus on the growing concern of foreign brands, since product substitution can pose a threat to P&Gs sustainable competitive advantage and cause low profit margins. Key considerations also include the increasing intellectual property (IP) violations and the illegal use of foreign brands in Pakistan over the last several years, causing a loss of competitive advantage to other industry members. However The Pakistan Intellectual Property Rights Organization (PIPRO) is in the final stages of being set up. It will be run along private sector lines with strong stakeholder participation on its Board of Governors. (WTO, 2004). In addition, trade barriers and import regulations, particularly for pharmaceutical products, are high with numerous and long registration procedures. Finally an increased number of foreign companies have entered the market, and the quality and reliability of the goods...