Question

Colgate Palmolive

Find strategic issues and challenge that company are facing. (e.g competitive rivalry, threat of substitutes, power of buyers, threat of new entrants).

Answer 1

Challenges faced by Colgate Palmolive are as follows:

*Since, Product of the company are fast moving consumer goods, and customer involvement is low while buying the product, so presence of regional and national competitors is a big threat to the organisation.

*Other Substitutes and cheaper options like Soaps, local product are available that cannabilize the existing product.

*In this kind of product, mostly price of the product are decided by market sentiments and willingness of the consumer to pay.

*Barrier to entry is low, so threat of new entrants is very high.