Bic Case Study
BIC Corporation: How a global icon develops its strategy
Case questionsAnalyse the BIC case study and discuss the following questions: 1. What strategy did BIC use to succeed in the ball point pen market? 2. How did the strategy change with porous point pens and disposable lighters? 3. Which of the new product options should BIC pursue? Why/why not? 4. On the basis of your analysis in Questions 1 to 3, what do you think are the strategic strengths and weaknesses of BIC? 5. What strategies would you recommend to Baron Bich for the future? | BACKGROUND
BIC is a world leader in the stationery, disposable lighter and shaver market. It sells its products in over 160 countries through office supply companies, supermarkets, stationery stores and wholesalers.
The worldwide sales of BIC Corporation are in excess of $2.0 billion p.a. BIC employs around 10,000 staff worldwide.
Product | Global market share | Daily sales (units) | Stationery | 8% | 21 million (including over 16 million ball point pens) | Shavers | 20% | 10 million | Lighters | 22% | 4.5 million |
Company History
BIC was established in the 1945 by the Baron Marcel Bich and is still controlled by the Bich family. The Baron was a production manager for a French ink manufacturer. Wanting to go out on his own, he bought a small, empty factory outside Paris. He had little capital, no machinery, no customers and no products. He and a friend, Edouard Buffard, starting making fountain pens and mechanical pencils.
The Baron soon recognised the enormous potential of ball point pens, so he started producing them in 1950. He called the pens “BIC” – a shortened, easy to remember version of his own name.
By 1956 he had set up operations in Brazil. He also bought the Waterman Pen Company in the USA, a fountain pen manufacturer, converted the facilities and set about developing a strategy to become the world's leading ball point pen manufacturer.
Developing the market for ball point pens was
Case questionsAnalyse the BIC case study and discuss the following questions: 1. What strategy did BIC use to succeed in the ball point pen market? 2. How did the strategy change with porous point pens and disposable lighters? 3. Which of the new product options should BIC pursue? Why/why not? 4. On the basis of your analysis in Questions 1 to 3, what do you think are the strategic strengths and weaknesses of BIC? 5. What strategies would you recommend to Baron Bich for the future? | BACKGROUND
BIC is a world leader in the stationery, disposable lighter and shaver market. It sells its products in over 160 countries through office supply companies, supermarkets, stationery stores and wholesalers.
The worldwide sales of BIC Corporation are in excess of $2.0 billion p.a. BIC employs around 10,000 staff worldwide.
Product | Global market share | Daily sales (units) | Stationery | 8% | 21 million (including over 16 million ball point pens) | Shavers | 20% | 10 million | Lighters | 22% | 4.5 million |
Company History
BIC was established in the 1945 by the Baron Marcel Bich and is still controlled by the Bich family. The Baron was a production manager for a French ink manufacturer. Wanting to go out on his own, he bought a small, empty factory outside Paris. He had little capital, no machinery, no customers and no products. He and a friend, Edouard Buffard, starting making fountain pens and mechanical pencils.
The Baron soon recognised the enormous potential of ball point pens, so he started producing them in 1950. He called the pens “BIC” – a shortened, easy to remember version of his own name.
By 1956 he had set up operations in Brazil. He also bought the Waterman Pen Company in the USA, a fountain pen manufacturer, converted the facilities and set about developing a strategy to become the world's leading ball point pen manufacturer.
Developing the market for ball point pens was