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Colgate Swot Essay

1294 words - 6 pages

As a Company that strives to be the best truly global consumer products company, we are committed to doing business with integrity and respect for all people and for the world around us ("Profile of Colgate-Palmolive," 2011).

Strengths
Product Diversification
Colgate-Palmolive is a diversified company with products in many categories including oral care, personal care, home care and pet nutrition (Quelch, & Laidler, 1993). The diversified product portfolio serves as a strength as it minimizes risk by not putting all of their ‘eggs in one basket’ and maximizes growth opportunity by having expanded business operations and markets to serve.
Toothpaste Market Share
As the ...view middle of the document...

For example, since 1991, the company has run Bright Smiles, Bright Futures, which educates kids about oral health. These programs work to build respect for the Company as well as further brand recognition and use of the products. This program has reached 80 countries and a half a billion children (Annual Report, 2011).
Global Recognition Awards
In the last 10 years, Colgate-Palmolive has earned numerous recognition for being a top employer (“Colgate.com,”). Most recently, in 2010, Fortune Magazine named the company as one of the 100 best companies to work for (“2010 100 Best Companies”, 2011). This is a strength in that they are able to attract top talent to run the business, which serves as competitive advantage.

Weakness
Declining Stock Price
In 2010, the Stock Price declined 2% overall compared to 2009 (Annual Report, 2011.). Shareholders pay close attention to these trends when considering stock purchases and this could have a negative impact on investor interest.
Reliance on Oral Care
Colgate Palmolive has a high reliance on their oral care products, which increases risk should the market change significantly in that category. Oral care accounts for 33% of Colgate-Palmolive’s total sales (“Colgate.com,”).
Declining Sales
Sales in the Pet Nutrition Division of Colgate Palmolive, which accounts for 14% of all sales, declined 2.5% in 2010. Sales also declined in Latin America, Europe and South Pacific in 2010. Sales declined 1.5% in Latin America and 1.5% in Europe/South Pacific. These regions account for 48% of total sales. Declining sales are a weakness, especially when the decline is impacting 62% of total sales (Annual Report, 2011.).
Slow Innovation
Colgate-Palmolive, when compared to Proctor & Gamble, innovates new products at a much slower rate that its competitors. Proctor & Gamble spends 2 billion on Research & Development each year while Colgate-Palmolive spends $500 million (Annual Report, 2011).

Efficiency
Colgate-Palmolive has a significant number of formulas, complex and costly logistics and packaging – all of which impacts their ability to invest funds in new product development or marketing (Annual Report, 2011).

Opportunity
Educating Consumers
Colgate-Palmolive has the opportunity to build consumption by education people about better oral and personal hygiene. For example, Asia and India are opportunities for personal care (Annual Report, 2011).
Increase Marketing Efforts
The Company has the opportunity to increase marketing efforts to gain further market share. While they currently advertise, they can work to ensure they are utilizing all types of media including emerging social media and phone applications.
Additional Innovation
Colgate-Palmolive, like every company, has an opportunity to continually innovate through Research and Development efforts and additional consumer research. Additional innovation will drive additional market...

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