Case Study Description of Colgate-Palmolive: Cleopatra
Demonstrates the dangers in assuming that a product successful in one market will do well in another, poor global marketing implementation, poor marketing strategy and implementation in general where research was used to back decisions on how to proceed, the need for an integrated marketing strategy to launch a new brand, and overreliance on an advertising push to diffuse a new brand. A 1992 ECCH award winner.
Swot Analysis of "Colgate-Palmolive: Cleopatra" written by Sandra Vandermerwe, J. Carter Powis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cleopatra Overreliance facing as an external strategic factors. Some of the topics covered in Colgate-Palmolive: Cleopatra case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Colgate-Palmolive: Cleopatra casestudy better are - – supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels,
technology disruption, geopolitical disruptions, etc
Introduction to SWOT Analysis of Colgate-Palmolive: Cleopatra
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Colgate-Palmolive: Cleopatra case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cleopatra Overreliance, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cleopatra Overreliance operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Colgate-Palmolive: Cleopatra can be done for the following purposes –
1. Strategic planning using facts provided in Colgate-Palmolive: Cleopatra case study
2. Improving business portfolio management of Cleopatra Overreliance
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cleopatra Overreliance
Strengths Colgate-Palmolive: Cleopatra | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cleopatra Overreliance in Colgate-Palmolive: Cleopatra Harvard Business Review case study are -
Highly skilled collaborators
– Cleopatra Overreliance has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Colgate-Palmolive: Cleopatra HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Cleopatra Overreliance has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Low bargaining power of suppliers
– Suppliers of Cleopatra Overreliance in the sector have low bargaining power. Colgate-Palmolive: Cleopatra has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cleopatra Overreliance to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Cleopatra Overreliance is one of the most innovative firm in sector. Manager in Colgate-Palmolive: Cleopatra Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Cleopatra Overreliance
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cleopatra Overreliance does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Cleopatra Overreliance are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High brand equity
– Cleopatra Overreliance has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cleopatra Overreliance to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Cleopatra Overreliance is one of the leading recruiters in the industry. Managers in the Colgate-Palmolive: Cleopatra are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Cleopatra Overreliance is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Colgate-Palmolive: Cleopatra Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Successful track record of launching new products
– Cleopatra Overreliance has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cleopatra Overreliance has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Sustainable margins compare to other players in Sales & Marketing industry
– Colgate-Palmolive: Cleopatra firm has clearly differentiated products in the market place. This has enabled Cleopatra Overreliance to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Cleopatra Overreliance to invest into research and development (R&D) and innovation.
Weaknesses Colgate-Palmolive: Cleopatra | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Colgate-Palmolive: Cleopatra are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cleopatra Overreliance is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Colgate-Palmolive: Cleopatra can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Colgate-Palmolive: Cleopatra that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Colgate-Palmolive: Cleopatra can leverage the sales team experience to cultivate customer relationships as Cleopatra Overreliance is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Cleopatra Overreliance supply chain. Even after few cautionary changes mentioned in the HBR case study - Colgate-Palmolive: Cleopatra, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cleopatra Overreliance vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Colgate-Palmolive: Cleopatra, in the dynamic environment Cleopatra Overreliance has struggled to respond to the nimble upstart competition. Cleopatra Overreliance has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Colgate-Palmolive: Cleopatra HBR case study mentions - Cleopatra Overreliance takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Workers concerns about automation
– As automation is fast increasing in the segment, Cleopatra Overreliance needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Cleopatra Overreliance has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Cleopatra Overreliance even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Products dominated business model
– Even though Cleopatra Overreliance has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Colgate-Palmolive: Cleopatra should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Cleopatra Overreliance, firm in the HBR case study Colgate-Palmolive: Cleopatra needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Colgate-Palmolive: Cleopatra has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Cleopatra Overreliance 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Colgate-Palmolive: Cleopatra, it seems that the employees of Cleopatra Overreliance don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities Colgate-Palmolive: Cleopatra | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Colgate-Palmolive: Cleopatra are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cleopatra Overreliance can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Colgate-Palmolive: Cleopatra, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Cleopatra Overreliance to increase its market reach. Cleopatra Overreliance will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Buying journey improvements
– Cleopatra Overreliance can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Colgate-Palmolive: Cleopatra suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cleopatra Overreliance is facing challenges because of the dominance of functional experts in the organization. Colgate-Palmolive: Cleopatra case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Learning at scale
– Online learning technologies has now opened space for Cleopatra Overreliance to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Using analytics as competitive advantage
– Cleopatra Overreliance has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Colgate-Palmolive: Cleopatra - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cleopatra Overreliance to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cleopatra Overreliance can use these opportunities to build new business models that can help the communities that Cleopatra Overreliance operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Cleopatra Overreliance can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Cleopatra Overreliance to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Creating value in data economy
– The success of analytics program of Cleopatra Overreliance has opened avenues for new revenue streams for the organization in the industry. This can help Cleopatra Overreliance to build a more holistic ecosystem as suggested in the Colgate-Palmolive: Cleopatra case study. Cleopatra Overreliance can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cleopatra Overreliance in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Cleopatra Overreliance can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Cleopatra Overreliance can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Colgate-Palmolive: Cleopatra External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Colgate-Palmolive: Cleopatra are -
Environmental challenges
– Cleopatra Overreliance needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Cleopatra Overreliance can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Colgate-Palmolive: Cleopatra, Cleopatra Overreliance may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Regulatory challenges
– Cleopatra Overreliance needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
High dependence on third party suppliers
– Cleopatra Overreliance high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Technology acceleration in Forth Industrial Revolution
– Cleopatra Overreliance has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Cleopatra Overreliance needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cleopatra Overreliance can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Colgate-Palmolive: Cleopatra .
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cleopatra Overreliance can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Cleopatra Overreliance demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Cleopatra Overreliance business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cleopatra Overreliance in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Cleopatra Overreliance in the Sales & Marketing sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Cleopatra Overreliance will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing wage structure of Cleopatra Overreliance
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Cleopatra Overreliance.
Weighted SWOT Analysis of Colgate-Palmolive: Cleopatra Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Colgate-Palmolive: Cleopatra needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Colgate-Palmolive: Cleopatra is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Colgate-Palmolive: Cleopatra is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Colgate-Palmolive: Cleopatra is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Cleopatra Overreliance needs to make to build a sustainable competitive advantage.
