Colgate Palmolive Five Forces Model
1.0 Introduction
Colgate Palmolive is an American diversified multinational corporation which is focus on the production. Distribution of Colgate Palmolive and provision are oral care, household care and personal care products, such as toothpaste and toothbrushes (SagarSood, n.d). The founder of Colgate Palmolive was William Colgate in 1806, which he was focused on selling starch, soap and candles.
The product of Colgate Palmolive is more focus on consumer product which can be divided into four part, oral care, personal care, household surface care, fabric care. Personal care is those product often used by customer to clean themselves such as shampoos, conditioners, shower gels and so on (Zach Glisson, n.d).
Colgate Palmolive is very concern
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If the customers buy the products of the same brand loyally, they display both behavioral and attitudinal loyalty (Terblanche, 2002). According to the data we collect, we can show that the Colgate Palmolive have 210 billion market share and their most compete competitor is Proctor& Gamble, P&G have 290 billion market shares in the market.
Access to distribution channel and first mover advantages
According to the result, it show that the threat of new entrants of personal care is very low and for run the personal care firm must have a large of the capacity and also need to have access the distribution channel and relationship (Martin et al. 2008). Hence there is a lot of retailer in the market and the Colgate Palmolive is already enjoying first mover advantages, it will not attract any new company to entry for this
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2008). The bargaining power of buyer are high due to the customer ability to negotiate price per large quantity and the industry competes on undifferentiated product firm wide, therefore the customer have ability to switch product (Martin et al. 2008). The customers are price sensitivity, customer will also switch to substitute product due to the lower price and the functional are similar (Kerschen et al.
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