Gillette Case Study
Executive Summary
Gillette is a world known multinational company in shaving products market and holds more than 70% market share (Hartline 2007) in this segment. Since its very inception in 1901, Gillette has always been envied for delivering the finest shaving care products both for men and women. Besides, it has also diversified its product lines extending it to toothbrushes, toiletries, stationeries, cosmetics and other household appliances. Originated in Boston, Gillette has been dominating its domestic market in the United States since starting and then slowly and gradually becoming a global leader. This case study provides an overview of the constant product innovation by Gillette throughout its’ history and scope for further research and development in an innovation driven wet shaving market. The case also discusses the strategy of Gillette for further expanding its dominant market share around the world under the ownership and guidance of Procter and Gamble (P&G) and making Fusion – a first five-bladed razor its flagship brand. While doing this Gillette also has to face stiff competition from its premier competitors, Wilkinson Sword-Schick Company and BIC. Though being at the top, Gillette now deals with the problem of product innovation in a somewhat stagnant and mature shaving market and needs to find other ways to remain on top. The possible solutions relate to acquiring its competitors’ business, developing and expanding the women’s market and further reducing the prices to reach more customers. It calls for some broad recommendations and implementation.
SWOT Analysis
Internal Strengths
• World leader in producing extraordinary shaving care products of world class quality through constant innovation and successful in most of them • Holding a major share of the global wet shaving market (more than 70%) (Hartline 2007) • Huge financial resources at its disposal giving Gillette an edge over the others for extensively
Gillette is a world known multinational company in shaving products market and holds more than 70% market share (Hartline 2007) in this segment. Since its very inception in 1901, Gillette has always been envied for delivering the finest shaving care products both for men and women. Besides, it has also diversified its product lines extending it to toothbrushes, toiletries, stationeries, cosmetics and other household appliances. Originated in Boston, Gillette has been dominating its domestic market in the United States since starting and then slowly and gradually becoming a global leader. This case study provides an overview of the constant product innovation by Gillette throughout its’ history and scope for further research and development in an innovation driven wet shaving market. The case also discusses the strategy of Gillette for further expanding its dominant market share around the world under the ownership and guidance of Procter and Gamble (P&G) and making Fusion – a first five-bladed razor its flagship brand. While doing this Gillette also has to face stiff competition from its premier competitors, Wilkinson Sword-Schick Company and BIC. Though being at the top, Gillette now deals with the problem of product innovation in a somewhat stagnant and mature shaving market and needs to find other ways to remain on top. The possible solutions relate to acquiring its competitors’ business, developing and expanding the women’s market and further reducing the prices to reach more customers. It calls for some broad recommendations and implementation.
SWOT Analysis
Internal Strengths
• World leader in producing extraordinary shaving care products of world class quality through constant innovation and successful in most of them • Holding a major share of the global wet shaving market (more than 70%) (Hartline 2007) • Huge financial resources at its disposal giving Gillette an edge over the others for extensively
References: Ferrell, C. & Hartline, M. (2008). Gillette the Razor wars continue. Marketing Strategy (4ed., pp. 444-454). OH, Thomson South-Western. Gillette Fusion Case Study (2008). Gillette Fusion Case Study: Developing a US$1 Billion Brand, 1-11. Retrieved from Business Source Complete database. http://search.ebscohost.com Weyrich, C. (1998, February 16). The meaning of innovation. Electronic News (10616624), p. 8. Retrieved from Business Source Complete database. http://search.ebscohost.com