Colgate: From Local to Global in 21st Century - Essay Sample

Introduction

The organization was founded at the beginning of the 21st century, with the beginning of success recorded from the year 2003. By 2005, the company managed a value of worth $10.6 billion after extending its operation to a global domain operating in more than 200 countries worldwide. The initial focus of the company was two core segments of the product, which were based on oral, personal, and Home Care and pet nutrition (Quelch & Labatt-Randle, 2014). Colgate products, including toothpaste and toothbrush, were the primary good produced in the organization. This enabled the company to arise above all the toothpaste and tooth brush producers worldwide. As a result, the company has since managed to dominate a significant global market share

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Internal Strengths and Weaknesses

Strengths

• The organization focuses on launching new products and innovation; this introduces desirable forms of products, which meet the needs of the consumers.
• The organization has achieved a significant level of market leadership relative to the competitors operating on similar products; this extends to across several geographies
• The organization has and establishes a variety of business operations
• The organization produces quality tooth management products which appeal to the needs of the customers

Weakness

• The company operates on the premium category of products with relatively high pricing
• The organization manages a limited size of variants available in the market
• The products on which the company operates are only limited to specific and small urban segments
• The External Environment Surrounding the Company

Opportunities

• The organization can increase sales and values by expanding nd following its product line
• The organization can extend their market reach to the developing countries especially the rural areas now that the urban regions are already saturated
• The organization has the opportunity of strengthening the ability o expand by embracing and implementing merges with the top international companies

Threats

• There are emerging local and national organizations working on similar products
• The organization is forced to give more discount to adjust to the competitive situation hence the margin drops
• The organization spends more on raw martial implying that they may charge more on their products, which may lead to reduced market share

An Evaluation of SWOT Analysis

The organization has great strength and opportunities, which have, keep it above most organizations that would have been rather potential competitors. The organization has unique approaches to production and serving the market. However, the weakness and threats exist, which make the organization a little shaky regarding moving towards achieving the missions (Quelch & Labatt-Randle, 2014). The adverse effects majorly occur due to the threats of competitors. Nevertheless, the company still has the opportunity to embrace its corporate strategies because it is an established organization, which can adjust and mitigate the troubling situation. It, therefore, remains a reliable company.

The Corporate-Level Strategy Pursued by the Company

The organization utilizes the strategy of rebranding its product as a way of focusing on raising the demand among the consumers. Even as much as the organization embrace creating new products, the actual products with value still have a place in the organization; however, the organization prefers coming up with new brands of the same products to ensure that they are always highly demanded especially when the sales appear to be decreasing considerably. This has helped the organization to expand the scope of its production at a relatively reduced cost.

The Company's Business-Level Strategy

The organization is using the output control to manage the business level strategy on which it focuses. The organization considers the nature of the actual product, which they compare against the planned outcome. Through this approach to control, the organization can determine the type of brand for the Colgate products, which would fit a given portion of the market at a given time (Quelch & Labatt-Randle, 2014). On this note, the organization is able to review the products and decide on the most applicable brand.

The Company's Structure and Control Systems

The organization utilizes the multi-divisional structure, which further determines its control systems. The system is appropriate since it helps the organization to fit its activities in the global economy on which it operates. The organization is established in many countries with different units, each with its management. This contributes to the ability of the company to provide the potential of meeting the general objectives by adding from the individual units, which make up the whole organization

Recommendations

The organization is a leader in the industry of its operation; however, their several strategies, which can be applied to ensure that the organization utilizes its ability properly and improve on its mistakes. The organization should focus on the differentiation strategy to ensure that it is always distinguished from the possible competitors. Besides, the company should consider creating more products to ensure that the income is not affected even if they are forced to give high discounts. These strategies will make the organization gain leadership in the industry.

Reference

Quelch J, J., & Labatt-Randle, A. (2014). Colgate Max Fresh: Global Brand Roll-Out. Harvard Business School.