Serial strategic innovation and sustainable competitive advantage: A longitudinal case study

This paper examines serial strategic innovation as a basis of sustainable competitive advantage through a longitudinal case study of Proctor and Gamble (P&G) from its inception through 2008. For over 170 years P&G has been in continuous operation in the consumer products industry, growing to become a multi-billion dollar global corporation. Over its history, P&G has pioneered a series of strategic innovations that have sustained its competitive advantage in a number of highly contested market spaces. This paper reviews five key strategic innovations in the areas of direct to consumer advertising, direct product distribution, marketing research, brand management, and technological and product innovation. Contributions to sustainable competitive advantage are discussed in terms of product portfolio mix, market share growth, financial returns, and competitive positioning. Using multiple conceptual frameworks from the strategic management, disruptive innovation, value chain, and innovation embeddedness literatures, the paper concludes with discussion of the nexus between serial strategic innovation and sustainable competitive advantage that emerges from this review along with directions for future research.