Abstract

The case discusses the corporate espionage controversy involving two of the world’s largest consumer product companies, P&G and Unilever, in the early 21st century. It gives an overview of the concepts of competitive intelligence and corporate espionage and examines the differences between them. It then outlines the evolution of corporate espionage over the centuries and examines the reasons for its increasing use. Next, the case details the covert operation conducted by P&G to gain competitive infor-mation about Unilever’s shampoo business in the US. It examines the steps taken by P&G’s top management after discovering the secret operation, to settle the matter with Unilever. Finally, it talks about Unilever’s response to the incident, its settlement demands, and summarizes the lessons that can be learnt from this episode.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Concepts of competitive intelligence and corporate espionage.

Keywords

Corporate, espionage, consumer product, companies, P&G, Unilever, 21st century, competitive intelligence, corporate espionage, differences, evolution, covert, operation, competitive information, shampoo business, US, settlement demands