Colgate-Palmolive Essay

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Memorandum To: Colgate-Palmolive’s CEO From: 353119814 Date: December 15th, 2013 Subject: How to face the strong competition environment in the Oral Care industry Executive Summary Colgate-Palmolive has successfully built a strong position in the oral care industry globally, in special in emerging markets. However, increasing competition by other global consumer care products, including its main competitor P&G, have become a threat to our consolidated leadership in the Oral Care industry, especially in markets with higher growth perspective and from which the company makes most of its revenue. To face this strategic challenge, we evaluated the options and have come to a conclusion that Colgate-Palmolive should streamline its operations, reducing exposure in industries where growth and the company’s competitive position are uncertain, and focus strongly in leveraging the capabilities that built its current strong market position to increase its market share in the oral care industry of higher growing markets. The main strategic analysis as well as the reasons concerning this recommendation can be find bellow. Industry and Competitive Landscape Although Colgate is a consumer products company and have a diversified portfolio of products in oral care, health care, personal care and pet foods, Colgate’s brand has been synonymous of oral care, an industry which its main products are toothbrush, toothpaste, mouthwash and dental floss. The oral care segment, represents 43% of Colgate-Palmolive’s sales1, with the rest divided between home care, personal care and pet foods. Most of the growth in the industry is expected to come from emerging markets where consumption of toothpaste is still very low2. In the US and developed markets the expected growth rate is around 2% and P&G is the leader in the US market. With emerging markets driving industry growth, P&G and other big

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