Competitive Analysis of Crest Whitestrips

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Running head: Competitive Analysis of

Competitive Analysis of Crest Whitestrips

MBA 6110

Marketing and Brand Management

Capella University
July 24, 2009
Instructor: Cliff Butler

Every firm’s marketers must develop an effective strategy for dealing with the competitive environment. A company may position its product or service with an eye towards its ability to sustain that position (Hooley and Greenley, 2005). The most direct competition occurs among marketers of similar products. The indirect competition involves products that can be easily substituted. One company may compete in a broad range of markets in many areas of the world. Another company may specialize in a particular market segment like geographic location, age, or income characteristics. Marketers must make product pricing, distribution, and promotional decisions that give the firm a competitive advantage in the marketplace. The overall health of the economy determines how much a consumer is willing to spend on a particular product. Industry Analysis

There are many other companies that have teeth whitening products such as Colgate-Palmolive’s Total Plus Whitening toothpaste, Listerine whitestrips, Rembrandt’s whitening toothpaste and whitening kits, and Aquafresh White Trays. I believe the degree of differentiation within this industry is oligopoly. Oligopoly is a common market form. Oligopolistic competition can give rise to a wide range of different outcomes. Competition between sellers in an oligopoly can be fierce, with relatively low prices and high production. This could lead to an efficient outcome approaching perfect competition. The competition in an oligopoly can be greater than when there are more firms in an industry if, for example, the firms were only regionally based and didn't compete directly with each other. In an oligopoly, firms operate under imperfect competition. Following from the fierce price competitiveness created by this sticky-upward...
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