Colgate-Palmolive Business level strategy
We have a group project about Colgate-Palmolive company and my part is to write a Business level strategy about the company. So these are the requirements:
Notes to what a “Business Level Strategy” Paper Should Include Please Read it carefully:
Note: Colgate-Palmolive is a huge company. So the ares of focus should be on:
1) Oral Care industry
2) Toothpaste market: Colgate Total* (+ manual toothbrushes)
3) Main competitor: P&G* (+others)
You should mention what strategy they use: Cost leader or Differentiator? You should state and talk about how the company strives to set itself as a differentiator within the oral care industry, against its rivals.
• You should be talking about its business strategy that encompasses: customers’ needs, customer groups, & its distinctive competencies.
• Customer groups and market segmentation?
• How did they implement their business model?
• How did they differentiate their toothpaste products, with a focus on Colgate total, otherwise, give relevant examples within the toothpaste market in the oral care industry.
• How did they price their product?
• Competitive positioning? How has its business-level strategy allowed it to competitively position itself with its customers & competitors
• its Value Chain: Primary & Support activities **** This is very important for Colgate – please check the value chain flow chart provided in this chapter and describe Colgate’s primary activities, support activities, inputs & output. (Check chapter/slides on: Levels of Strategic Management)
*Colgate has a well-defined Value chain, which they have a strong competitive advantage in*
Please make sure that those answers will answered in the paper:
1- Some companies perform just one business. (For example, a local company that operates a single restaurant.) Others have several businesses, but one is overwhelmingly dominant. (For example, Wal-Mart discount stores is the dominant business of Wal-Mart Stores Inc., though the company also sells on line and through Sam’s Club warehouse stores.) Finally, in some companies several businesses have to be understood to gain a good sense of the firm as a whole. (For example, Shell Oil has businesses that find and produce oil, that refine oil, and that sell oil to end-users. You can’t understand Shell by looking at just one of these businesses.)
2-How many different businesses need to be analyzed to give a picture of the overall success of your company? (Usually if you analyze business units representing 70-80% of the firm’s total sales and profits, you can get a good idea.) If one business unit is dominant, answer the following questions for that business unit. If more than one is important, pick two business units and answer the questions for each.
3-How differentiated are the products/services of this business? To the extent that they are differentiated (that is, to the extent that customers see them as superior to competitors’), what is the basis of their differentiated appeal?
4-What is the business’ strategy toward market segmentation? If it segments its market, on what basis does it do so?
5-What functional units seem the main driving forces in your company? Are they adequate to support its business-level strategy?
6-What are the advantages and disadvantages of the chosen business-level strategies?
NOTE: If you say a business is pursuing both differentiation and cost leadership, indicate to what extent you think the company is or is in danger of being “stuck in the middle.”
7-Based on all the information you have gathered so far, do you now believe your company has a sustainable competitive advantage? If not, what might it do to create a sustainable competitive advantage? Could you improve the business-level strategies you have discussed?