Means Essay

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FACTORS AFFECTING THE DEMAND OF COLGATE TOOTHPASTE Economic factors that affect the colgate brand The overall economy of the country is showing a stable growth. Therefore this industry is also showing a growth of 10%. But the inflation is growing rapidly which is not a good sign for the new entrants. Change in the interest rate also affects the industry. Hence the new entrants are also threatened by the increasing interest rates. Economic factors do influence the bargaining power of buyers as inflation is the major factor that is affecting the consumers hard. Economic factors do not affect the availability of substitutes. But since inflation is growing, so it is hard for the poor people to switch to more modern products like washing powder, tooth paste. They would rather prefer oil to clean their clothes and use miswak to brush their teeth. Economic factors do have an affect on the bargaining power of suppliers as inflation is rising fast. Suppliers demand that they would provide the necessary raw material at a higher price. Exchange rate fluctuations also affect the cost of raw material. Economic factors do affect the rivalry among the competitors as all the players in the industry want to have cost leadership. The economic factors are favoring intense competition from the last five years. People have more money at their disposal. Also Pakistan is a consumption oriented society (Hiatt, Jeff.). Quantitative Strategic Planning Matrix (QSPM) STRATEGY 1 STRATEGY 2 Weights AS TAS AS TAS STRENGTHS Market leader in surface care with 90% market share 0.15 - - - - Good Leadership 0.06 - - - - Employee commitment 0.12 3 0.36 2 0.24 Cooling crystal patent 0.1 - - - - Accurate forecast with respect to demand 0.07 4 0.28 2 0.14 High EPS 0.08 3 0.24 2 0.16 Strong advertisement and promotional campaign 0.08 2 0.16 3 0.24

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