Business Strategy study guide

Local competitors though to avoid problems

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local competitors though to avoid problems - Competitive Response and Nonresponse o After ½ off prices, Colgate and Unilever made no moves to combat the new brand o Children market and other niche market – too small for multinationals to consider o Hapee captured 20% of the toothpaste market – gradually increased prices – was approached twice to sell company o Colgate-Palmolive initiated a 20% discount in 1996 – killed Lamoiyan o Pedro cut prices down again o Colgate and Unilever eventually countered Lamoiyan’s product line (targeting the children market) – featured cartoon characters - Low-Price Rivals o Other competitors wanted to emulate Pedro’s profitable low-price strategy o Kutitap – achieved 1.1% of market share o Problem: influx of toothpaste illegally imported from China - Dazz Dishwashing Paste o By-products: unused toothpaste would be used as dishwashing paste (Dazz) o Colgate dominated this industry - Opportunities for Growth o Deeper channel penetration, launching new products, and expanding internationally - Going Public
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o Offered shares to company (2000) – during Asian financial crisis o Needed to clean up financial books - Deeper Channel Penetration o Lack of sachet-packaged toothpaste - New Products o Tenderfly: fabric softener o If a small company could gain enough market share, eventually the firm would retaliate aggressively - International Expansion o 2003 – all toothpaste imports and exports from the Philippines had a 10% tariff o Two biggest barriers to success in international markets would be distribution access and brand recognition o Finding the right partner is crucial: willing to invest, have the same objective o Alternative: open manufacturing and packaging plants abroad o Pedro was eager to penetrate regional markets as soon as possible – establish a presence - Looking back and Looking Forward o Pedro was not willing to give up o He only wanted to achieve a small market share Oncidium Business Consulting How are professional service organizations different for manufacturers? Silvio Napoli at Schindler India - Napoli: Italian rugby player – wanted to create an organization from scratch - After 8 months in India, he did not install a single elevator - Schindler’s India Explorations o Company didn’t have a market presence in India until later - The Growing Commitment o Established in 1874 by Robert Schindler – transformed the company’s culture to a customer-oriented service company o 1 st Schindler elevator in India was installed in 1925 o Alfred Schindler (4 th generation) took a sabbatical for several months to step back and review Schindler – wanted to travel several markets - Silvio Napoli’s Role o Assistant to Mr. Schindler – head of corporate planning - The Swatch Project o 1995: new-product sales were eroding as each competitor strove to expand its installed base of elevators o Goal was to develop a standardized elevator at a dramatically lower cost - The Indian Entry Project
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o Napoli contact experts in India to help him expand his understanding of the situation
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local competitors though to avoid problems Competitive...

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