To answer these questions, we are first examining and identifying their main issue in terms of their strategy of product, promotion, distribution channel and cost program. Based on the main issue, we then evaluate different alternatives and recommend the strategy that the company should follow. .
Diagram Worldwide sale.
Colgate's oral care product is the most important sector which contributes to their worldwide sales of 34% in year 2000. In Europe, one of largest and profitable operations was driven by high growth of Europe markets such as UK and Greece. Colgate Italy has not been in line with main European countries in terms of sales. Three main products in Italy market include: Toothpaste, Toothbrushes and Mouth rinses.
Core Competencies.
First Mover Advantage.
Colgate utilizes Internet auctions to acquire suppliers for its production. Through online bids from authorized suppliers, Colgate has 30% savings on purchases of a wide variety of materials and services around the world. [Colgate-Palmolive, 2002].
Superior Customer Services and Technology.
The greatest strengths of Colgate are its highly prestigious customer services and technology. By mid-2002, 94% percent of its business are supporting by SAP enterprise-wide software. [Colgate-Palmolive, 2002] SAP has already led to significant improvement in supply chain performance and customer services. By applying next generations of software, additional savings are achieved from online-ordering by customers, management of inventory, store shelf management, sales forecasting, collaborative planning with trade customers, and purchasing. .
Furthermore, Colgate has developed unique technology that captures data on purchases of materials and services around the world. Information on everything we buy is updated daily and can be viewed in minutes. This supporting system is driving efficiencies and simplifications worldwide.
Selection and Price.
