Gillette Case
Gillette
Logistics Management
Logistics - 1st semester
With regard to developing and introducing new products, what lessons did Gillette learn from the Wilkinson Sword and Bic experiences?
Gillette learned that they had to think ahead and be creative to be competitive.
They learned that they have to develop their products before their competitors to be the leading company of the market and staying popular to the customers.
Russel B. Adams Jr., says in the Gillette case study text: “This is what happens to you if you're not up there keeping ahead of the market”, which shows that Gillette is aware of the problem and of course will try to fix it.
To keep up with customers demands they had to do as Bic, who made disposable shavers, even though it would mean giving up profitability. In the long run it would be more profitable than being in the wrong end of the development process of the market.
Customers are so important for companies because they always have the right to chose another supplier, as customers did with the disposable shavers development from other companies.
Now Gillette has to change their business strategy to be competitive and core competencies have to include development of their products.
Why do you think Gillette was so slow in introducing coated stainless steel blades, even though the company was familiar with the technology? What are the implications for firms faced with making long-term investments in manufacturing and supply chain resources?
Gillette waited to make the coated stainless steel blades because they knew how to make them and they knew they would have to upgrade all their manufacturing equipment to do so. It would be too much of a cost to the company if customers didn't want to buy it.
The implications in making long term investments would be not knowing if the firms will earn revenue or if they will lose money on the process. Therefore they need to be sure before doing so.
They have to ask their
Logistics Management
Logistics - 1st semester
With regard to developing and introducing new products, what lessons did Gillette learn from the Wilkinson Sword and Bic experiences?
Gillette learned that they had to think ahead and be creative to be competitive.
They learned that they have to develop their products before their competitors to be the leading company of the market and staying popular to the customers.
Russel B. Adams Jr., says in the Gillette case study text: “This is what happens to you if you're not up there keeping ahead of the market”, which shows that Gillette is aware of the problem and of course will try to fix it.
To keep up with customers demands they had to do as Bic, who made disposable shavers, even though it would mean giving up profitability. In the long run it would be more profitable than being in the wrong end of the development process of the market.
Customers are so important for companies because they always have the right to chose another supplier, as customers did with the disposable shavers development from other companies.
Now Gillette has to change their business strategy to be competitive and core competencies have to include development of their products.
Why do you think Gillette was so slow in introducing coated stainless steel blades, even though the company was familiar with the technology? What are the implications for firms faced with making long-term investments in manufacturing and supply chain resources?
Gillette waited to make the coated stainless steel blades because they knew how to make them and they knew they would have to upgrade all their manufacturing equipment to do so. It would be too much of a cost to the company if customers didn't want to buy it.
The implications in making long term investments would be not knowing if the firms will earn revenue or if they will lose money on the process. Therefore they need to be sure before doing so.
They have to ask their