P&G has been able to accost it’s competition well with their direct competitor Unilevers as a result of acquiring Gillette. Similarly, a number of major competitors are active in all member states, and companies have started buying on European basis while there are significant price differences prevailing. On the other hand, there is not much of a threat from competitors on a national level (Case No Comp/M.3732 13).
The acquisition has triggered a significant response to horizontally affected markets such as in Greece, Slovenia and Hungary where the total market share for EEA countries had been about 10% for Gillette. For Greece alone, the combined market share was 30% which had been comparatively less than previous stats and it is where Unilever poses a strong threat emerging as the market leader with a market share of up to 40%
While talking in terms of Hungary, strong competitors are Beiersdorf and Unilever taking a leadership position again while P&G with Gillette combined are challengers. Similarly, a market share of P&G alone of 10% to 20% and that of Gillette at 10% combined are weak in terms of not just Unilever (10% to 20%) and Beiersdorf (5% to 10%) but Colgate (10% to 20%) as well.
The market at Slovenia has the same stance. Therefore, in such scenario it can be assumed that Procter & Gamble’s position is neither very strong nor dominant in terms of the competition prevailing and thus the company is a challenger as opposed to being a follower or a leader.
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