Q1. Describe the Oral care market (challenges and opportunities).

Opportunities : Challenges : Innovating constantly and launching new products Entering new markets - The US market has saturated, so it needs to enter new markets like Asia-pacific - Huge untapped market in developing countries

Q2. How do environmental factors affect P&G's decisions?

Given that environmental factors such as an Economic downturn and a contraction of the market(CAGR of -0.6%), it would be wise for P&G to reduce the price of white strip product for 2 reasons: 1) Since the launch of the product in 2000, P&G had a market share of 80% till 2002. It incurred R&D and initial marketing costs of $130 million. It gained 200 million by the end of 2000. It has already made huge profits for 2 years as it had a market share of 80%. Assuming that P&G can have a good margin by reducing the price of the products, it can select the option of reducing the price of the product.

Threat of new entrants: The other competitors can come up with new products, so P&G has to innovate constantly.

Q3. Analyze Colgate's strategy.

Q4. Recommendations if any.

It wouldnt be wise for P&G to sue Colgate, because even colgate can sue P&G because P&G has only achieved B*