A Study On The Competitive Strategy Of Colgate-Palmolive China

Enterprises face various kinds of development challenges,among which how to strengthen its competitiveness is the major one.As the core element of world economic development,enterprises should try to improve its revenue on the one hand,and to handle different impacts brought by competition on the other.It should try to survive and serve the societal needs.Therefore,enterprises should attempt to seek,to make and to implement effective competitive strategy and thus maintain a sustainable development.This study,taken Colgate Palmolive Co,China(CPCC)as an example,studies its strategies to cope with competition.Competitive strategies serve as the core element in enterprise development,and it determines whether the enterprise can succeed in the market,whether it can obtain its competitive edge and whether it can stimulate the dynamic to innovate.Thus,the research questions of this study include,what is the status quo of CPCC’s competitive strategies and what are the potential problems? What is the competitive environment like? How should the enterprise make its competitive strategies so as to boost its development? By exploring into the three questions,the study aims to provide a scheme for household products to improve its competitiveness and offer enterprises advice for strategy makingBased on an overview of literature and theoretical background,the study first analyses the status quo of CPCC’s competitive strategy and its potential problems,and further explores the competitive environment of the enterprise with an SWOT analysis,and brings up competitive strategies.The main content of the study is as follows:First of all,CPCC is in the middle of a competition jungle and faces competitive challenges from local enterprises,online enterprises and multi-national corporations,which result in slow development,decrease in sales,raise in costs,difficulties in human resources and the less satisfactory online sales.The factors that cause these problems including the slowdown of world economic development and the micro-elements within the enterprise that discourage the sales,the cost raise of supply chains that raises the overall costs of the enterprise,the management mechanism that makes the HR management stuck.In addition,household products are easy to take,easy to purchase and easy for storage,which make consumers less dependent on offline purchase.Secondly,the study explores the macro-environment the enterprise faces.The analysis is conducted from four aspects,namely,political,economical,social and technological.Based on Michael Porter’s Five Forces Model,the study further probes into the financial,marketing,HR,manufacturing and administration schemes of the micro environment of CPCC.With the application of SWOT,a detailed analysis of the strength,weakness,opportunity and threats is conducted.Corresponding strategies,including SO strategy,WO strategy,ST strategy and WT strategy are proposed based on the SWOT analysis.It further points out that SO strategy is the best.Finally,the analysis based on SWOT model constructs target strategic system,clarifies the target and offers different alternative competitive strategies and principles.And the study also proposes corresponding solutions,including how to better guarantee the administration,human resource management,capital,supply chains,technology,and image construction.