Porter’s 5 Forces:

Threat of New Entrants

 Relatively easy to enter market  in 1991, P&G and
Smithline Beecham entered market
 Switching cost to buyer is not high since
toothbrushes are not costly (cost only a few dollars)
 Products differentiated into value, professional, and
super-premium
 Easy access to a variety of distribution channels as
many to choose from (traditional food stores, mass
merchandisers, drug stores, etc.)

Supplier Power
 Products differentiated into
value, professional, and super-
premium
 Toothbrushes account for 15.5%
of this industry while toothpaste
accounts for 46%
 Supplier’s input is important
as it gives more options to
consumers
 Growing population who are
more concerned about
health of gums
Buyer Power
 Large number of consumers as
65% has more than one
toothbrush
 Switching cost to use another
product is relatively low (all
differ only by a few dollars)
Industry  Consumers buy new
toothbrush around once every
Attractiveness 7.5 months (factoring out 2 for
1 promotion for toothbrushes)
 Product important as it is
widely viewed as a neccessity

Industry Competitors
 Large number of competitors in market (ex.
Oral-B, Reach (J&J), Butler, etc.)
 Colgate (16% market share) is ranked below
Oral-B who holds 34% of market share
 Many positioned products in super-premium
segment (growing)
o Colgate positioned in value/
professional
 Toothbrush industry growing at annual rate
of 6.1% since 1986
Threat of Substitutes
 Toothbrushes are relatively cheap (average of
around $2) so switching costs for buyers is not
high
 Many products from competitors that offer
similar functionality
 Products like P&G’s Crest Complete that offer
effective functionality to brush like a dental tool
 Therapeutic brushers account for 46% of adults
 search for functionality effective products
o Easily substituted by more effective
products