STRATEGIC

MANAGEMENT

COLGATE - PALMOLIVE
Submitted By -
Himanshi Chadha 2K21/UMBA/52
Alisha Gupta - 2K21/UMBA/34
 Mission Statement

“Sparking optimism in everyone, every day”

◦Vision Statement

“Give everyone all the needed guidance to keep their smile healthy, thus eliminate many preventable and
treatable oral health problems. That’s our vision, and to reach it we’re raising oral health standards with our
product solutions and creating healthy habit-building learning opportunities that are easy to do.”

Strategy Statement

"Our basic principles of Caring, Global Teamwork, and Continuous Improvement will continue to drive our
future activities as we prepare our plans to sustain development in the years ahead“ to better understand
consumer behaviour and to create a future worth smiling about through its global brands, caring values, and
commitment to generating innovative products through creativity, enhancing effectiveness and efficiency, and
strengthening leadership globally that delight consumers.

POLITICAL FACTORS
Colgate being spread across the
globe, it may get affected
depending on the political stability
of the regional government.
TECHNOLOGICAL FACTORS
Technological changes can rapidly
dismantle the current product
range, price structure, competitors’
landscape, in a very short amount
of time. Colgate being a market
leader
SOCIAL FACTORS
ECONOMIC FACTORS
that have an impact on Colgate's
Colgate being FMCG, its sales
operations are the direct reflection
largely depend on the demand
of the society on which Colgate
for products. This all depends
operates. The cultural beliefs,
on whether the current market
values, attitudes of the majority of
is a monopoly, duopoly or
the population will determine the
perfect competition.
business market for Colgate.
LEGAL FACTORS ENVIRONMENTAL FACTORS
Colgate must keep into consideration
Food safety board also expects
at least those environmental
a certain level of quality
regulations which would not lead to
standards to be maintained to
its boycott of products or pressure
keep the customers safe, and from the social groups. Also, the
this has to be properly followed environmental condition of a
by Colgate according to the particular region may affect the
region it operates. availability of the product.
 Porter’s Five Force Model
1. Threats of substitutes
◦ High presence of multiple brands
◦ Price war
2. Competitive Rivalry
◦ Highly fragmented industry as more MNC’S are entering
3. Bargaining power of suppliers
◦ Low- Big FMCG companies are able to dictate the pricing through local sourcing from a fragmented group of
key commodity suppliers.
4. Threats of new entrants
◦ Huge inv estment in setting up distribution and promoting brands .
5. Bargaining power of buyers
◦ Availability of similar products
SWOT ANALYSIS

STRENGTH WEAKNESSES
1.Diverse product line 1.Competition
2. Strong distribution chain 2. Cost control
3. Strong customer base 3.Technology cost
4.Large free cash flow

OPPORTUNITIES THREATS
1.Product range expansion 1. Competition
2.Merger and acquisition 2. Growing apprehension on chemicals
3.Competitive pricing 3. FDI in retail; loss of business
◦Corporate strategy

◦Colgate Palmolive company’s strategy is to grow its business by continuously introducing innovative products . The
company continues to improve the efficiency by cutting down on operational expenses.

◦ Business Strategy
◦ Colgate-Palmolive Co. is a company which focuses on products that promote hygiene and cleanliness. They have
dominated the marketplace while efficiently providing oral care, pet care, cleaning products and more. They are
predominantly known for their oral hygiene products and have remained the leading brand of it’s industry. This report
delves into their current stance and how they will need to focus on targeting new markets and the transformation of their
business strategies.

◦ International Strategy
◦ Its plastic strategy focuses on 3 areas : using new materials , moving its packaging to 100% recyclable , reusable or compostable;
and developing other ways to deliver its products with less packaging

◦ The company is aiming to achieve net zero carbon emission in its global operations by 2040;

◦ Its recyclable tube took a lot of partnership and will continue to do the same.
VRIO Analysis of Colgate-Palmolive Company

VALUE
VRIO Analysis shows that the financial resources of Colgate-Palmolive Company are highly valuable as these help in
investing into external opportunities that arise.
◦ its local food products are a valuable resource as these are highly differentiated. This makes the perceived value
for these by customers high.
◦ Colgate-Palmolive Company's employees are a valuable resource to the firm. A significant portion of the workforce
is highly trained, and this leads to more productive output for the organisation. The employees are also loyal, and
retention levels for the organisation are high.
◦ Its patents are a valuable resource as these allow the firm to sell its products without competitive interference.
◦ It’sdistribution network is a valuable resource. This helps it in reaching out to more and more customers.
 Rare
◦ The local food products are found to be not rare as identified by Colgate-Palmolive Company VRIO Analysis. These
are easily provided in the market by other competitors.
◦ These employees are highly trained and skilled, which is not the case with employees in other firms. The better
compensation and work environment ensure that these employees do not leave for other firms.
• The patents of Colgate-Palmolive Company are a rare resource as identified by the Colgate-Palmolive Company VRIO
Analysis. These patents are not easily available and are not possessed by competitors. This allows Colgate-
Palmolive Company to use them without interference from the competition.
• The distribution network of Colgate-Palmolive Company is a rare resource as identified by the VRIO Analysis of
Colgate-Palmolive Company. This is because competitors would require a lot of investment and time to come up
with a better distribution network than that of Colgate-Palmolive Company. These are also possessed by very few
firms in the industry.
Imitable
◦ The local food products are not that costly to imitate as identified by the VRIO Analysis of Colgate-Palmolive
Company. These can be acquired by competitors as well if they invest a significant amount in research and
development.
◦ The employees of Colgate-Palmolive Company are also not costly to imitate as identified by the Colgate-Palmolive
Company VRIO Analysis. This is because other firms can also train their employees to improve their skills
• he patents of Colgate-Palmolive Company are very difficult to imitate as identified by the VRIO Analysis of Colgate-
Palmolive Company. This is because it is not legally allowed to imitate a patented product. Similar resources to be
developed and getting a patent for them is also a costly process.
• The distribution network of Colgate-Palmolive Company is also very costly to imitate by competition as identified
by the Colgate-Palmolive Company VRIO Analysis. This has been developed over the years gradually by Colgate-
Palmolive Company. Competitors would have to invest a significant amount if they are to imitate a similar
distribution system.
Organisation

◦ The financial resources of Colgate-Palmolive Company are organised to capture value as identified by the VRIO
Analysis of Colgate-Palmolive Company.
• The Patents of Colgate-Palmolive Company are not well organised as identified by the Colgate-Palmolive Company
VRIO Analysis. This means that the organisation is not using these patents to their full potential. An unused
competitive advantage exists that can be changed into a sustainable competitive advantage if Colgate-Palmolive
Company starts selling patented products before the patents expire.
• The distribution network of Colgate-Palmolive Company is organised as identified by the VRIO Analysis of Colgate-
Palmolive Company. Colgate-Palmolive Company uses this network to reach out to its customers by ensuring that
products are available on all of its outlets. Therefore, these resources prove to be a source of sustained
competitive advantage for Colgate-Palmolive Company.
◦ Kind of leadership and how it impacts the culture.

◦ We both through the analysis of colgate have inculcated the following view points.
◦ 1) Colgate-Palmolive, headquartered in New York City is the world leader in oral care products was
attributed to Reuben Mark, who has been the CEO of Colgate-Palmolive for the past 23 years
◦ 2) As the company's CEO, Mark stressed that focus is an important element of leadership at Colgate-
Palmolive.
◦ 3)His business ideas reflect his accumulated experience and his humane view of how to lead a business
organisation.
◦ 4) He persistently focused on achieving consistent growth, which is required to maintain the company's
global success and make it stronger.
◦ 5)Mark followed a different style to lead the company. According to Mark, it is the management's
responsibility to implement and make improvements in the organisation so as to move it towards
excellence.
Perceptual Mapping
Advantages to the incumbents enjoy
◦ Colgate® Makes Its Best Toothpaste Even Better With New Whitening Benefits
◦ 1) The #1 selling toothpaste on the market is giving consumers even more with the
introduction of new Colgate® Total® Plus Whitening toothpaste.
◦ 2) Delivering the benefits most desired by consumers, and also provide 12-hour
protection that helps fight cavities, prevent gingivitis, and fight bad breath.
◦ 3) Colgate Total Plus Whitening delivers the same therapeutic benefits and is the first
and only whitening toothpaste approved by the U.S. Food and Drug Administration.
Colgate is the leader in the toothpaste category(1) and Colgate Total is the #1 selling
toothpaste(2). Colgate Total is also the #1 most often recommended and personally
used toothpaste by dentists and hygienists(3)
Organizational Structure
◦ The overview of the enterprise structures and controls used by the company
Colgate-Palmolive has a hierarchical organizational structure. In the top of this organizational structure is the chief
executive officer, Mr. Ian Cook, who has a bird eye view of the organization in all parts of the world.
◦ Five continental senior executives follow the CEO. These executive officers are in charge of different continental block
Market, which are European, North American, African, Asian, and South American. Below the continental managers are the
country managers who are in charge of respective countries in which Colgate-Palmolive has a presence.
◦ The company’s organization structure has also the human resource managers and the information technology executives.
The justification that Colgate-Palmolive has a hierarchical organization structure is that all decisions are made by the
strategic managers at the top of the organizational structure.
Colgate-Palmolive has a divisional organizational design. The international divisions of Colgate-Palmolive face diverse legal
and cultural constraints in different continents of the world. Grouping international divisions develops specialized skills and
abilities for dealing with international questions that do not arise in domestic operations.
◦ This divisional organizational design helps Colgate-Palmolive respond and adapt to differences in product types, product
marketing and cultural differences of its various international locations. Divisional organizational design emphasizes
people’s decision-making autonomy throughout the organization.
◦ An individual at various levels can become more involved in organization’s basic activities. Organization by following this
structure puts more demands on individuals to deliver the highest level of business performance.
Blue Ocean Strategy Of Colgate-Palmolive

◦ With Colgate-Palmolive, the blue ocean model and framework has allowed the company to
explore new market spaces that have not been competitive, or actively utilized by players
existing in the present business environment. By doing so, Colgate-Palmolive has been able to
create new demand, rather than fight over and encroach existing competitive space. In doing
so, Colgate-Palmolive has been able to experience rapid growth as well as enjoy increased
profits. When Colgate-Palmolive adopts the blue ocean strategy, it changes the rules of the
game and eradicates the competition – rendering them unimportant, and irrelevant factors of
the environment.
REFERENCES
◦ https://www.swotandpestle.com/colgate-palmolive/

◦ https://www.mbaskool.com/pestle-analysis/companies/17976-colgate.html

◦ https://www.marketing91.com/

◦ https://www.colgatepalmolive.com/en-us

◦ https://trendlyne.com/equity/swot-buy-or-sell/276/COLPAL/colgate-palmolive-india-ltd/opportunity/