Gillette Case Study

 Gillette Example Essay

Exec Summary

Gillette is a world noted multinational organization in saving products industry and keeps more than 70 percent market share (Hartline 2007) through this segment. As its very invention in 1901, Gillette has always been envied for delivering the finest shaving care products both equally for men and women. Besides, it has as well diversified its product lines stretching it to toothbrushes, toiletries, stationeries, cosmetic makeup products and other home appliances. Originated from Boston, Gillette has been taking over its home-based market in america since starting and then slowly and gradually becoming a global leader. This case research provides an introduction to the constant merchandise innovation by simply Gillette during its' background scope for more research and development within an innovation driven wet waxing market. The truth also covers the strategy of Gillette for further expanding its prominent market share all over the world under the control and direction of Procter and Gamble (P& G) and producing Fusion – a first five-bladed razor its flagship company. While doing this Gillette has to face rigid competition from its premier competitors, Wilkinson Sword-Schick Company and BIC. Though being at the top, Gillette today deals with the condition of merchandise innovation within a somewhat flat and mature shaving market and needs to look for other ways to stay on top. The possible alternatives relate to obtaining its competitors' business, developing and growing the ladies market and further reducing the amount paid to reach more customers. This calls for several broad advice and implementation.

SWOT Analysis

Internal Strong points

• World leader in producing extraordinary shaving maintenance systems of first class quality through constant innovation and powerful in most of them • Possessing a major discuss of the global wet saving market (more than 70%) (Hartline 2007) • Large financial resources in its disposal providing Gillette an edge over the others for extensively undertaking R and d (R& D) activities to get product development and innovation • Well established development and promoting channels worldwide • Variation of Gillette's product lines to toiletries, cosmetic makeup products and other cookware, thus offering a complete array of shaving solutions • Good price of all the major waxing products (customers get the worth for money) • Gear marketing i. e. it adopts different marketing strategies for different market sections from country to nation (Hartline 2007)

Internal Disadvantages

• Some experts consider that Gillette is growing slowly on the globe market which is still under its' real potential (Hartline 2007) • Past variation activities and acquisitions never have been very successful (Hartline 2007) • Gillette's engagement in too many lawsuits boost the company costs and also influence its' manufacturer value (Hartline 2007) • Predominant reliance on individual item line- 2/3rd profits coming from razor knife and razor blade division • Delayed response to competitors' techniques

• The business seem to diversify haphazardly

External Opportunities

• Raising demand for personal grooming goods worldwide due to sociocultural developments • A massive portion of global population men and women shaving with a razor cutting tool • Simply no close competition from any other company (Schick claims simply 18% with the market and BIC contains about 5%) (Hartline 2007) • Most of Gillette's sales is made outside the Us (more than 60%) (Hartline 2007)

Exterior threats

• A large number of industry analysts believe that Gillette has come to a finish of its' historical product innovations inside the already parent wet waxing market • Industry analysts believe that Kleidsam may bring in a six-bladed razor whenever in response to Gillette's five-bladed Fusion • Growing popularity of use and throw away throw-away razors (serious competition via BIC in this segment...

References: Ferrell, C. & Hartline, M. (2008). Gillette the Razor battles continue. Online marketing strategy

(4ed., pp. 444-454). ALSO, Thomson South-Western.

Gillette Blend Case Study (2008). Gillette Blend Case Study: Making a US$1 Billion dollars Brand, 1-11. Retrieved by Business Origin Complete databases.

http://search.ebscohost.com

Weyrich, C. (1998, February 16). The meaning of innovation. Electronic News

(10616624), p. almost eight. Retrieved via Business Resource Complete databases.

http://search.ebscohost.com

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