One of the most basic necessities of a man for his personal use is his shaving kit. Very few companies are as successful as the company started by KING C. Gillette (1855-1932) on September 28, 1901 in Boston, MA as American safety Razor Company. The modern day traveler today encounters a Gillette product portfolio far boarder and the worldwide presence far stronger than any envisioned by the Company’s founder who patented his inventions of the razor in 1904. WHAT IS UNIQUE ABOUT GILLETTE Around 1.2 billion consumer’s per day use the company’s products. It has a market capitalization of US$ 3.76 billion. It is ranked 129 by FORBES 500, 2002 issue. After Success in the US, King Gillette expanded the company to UK, Germany, Denmark, Italy and Canada by 1920. The company introduced brush less razor in 1937. Gillette introduced shaving cream in the US in 1940. For the first time the company introduced razors for ladies in 1944. In 1952, the name of American Safety Razors Company was changed to THE GILLETTE Company. The company diversified into stationary business by acquiring Paper mate, a leading ballpoint manufacture in 1955 for $15M. Further venturing into personal care it produced “Right Guard” deodorants in 1960. The company manufactured surgical manufacturer’s hypodermic needles in 1962 at Reading, England. In 1964, the company strategically reorganized into two broad lines: men’s products and others. Gillette introduced stainless steel razors in 1965 across the US. To diversify into future brands, it acquired Braun AG in 1967 and moved into small electric appliances. It acquired 48% stake in SA Dupont Company and a manufacturer of luxury writing instruments and disposable lighters in 1971. For the first time in history of shaving razors, the company introduced TRAC 2, a twin blade shaving system, in 1971. Furthering its expansion operations, the company acquired “Jafra Cosmetics” in 1973 and increased stake in SA DuPont Company to 80%. It introduced “Cricket” disposable lighters in 1974. “Daisy” a disposable shaver was rolled out for women in 1974. “Good News” a disposable twin blade was introduced in 1976. Gillette expanded ballpoint product line with “Eraser Mate” in 1979. This has the feature of erasable ink. It acquired ORAL-B Labs Inc. in 1984. Revlon in 1986 is acquired. It acquired Waterman in 1987. It then launched “Sensor excel” in 1992 and consolidated its stationary division by acquiring “Parker Pen holdings Ltd” in 1993. It then acquired “Duracell International” in 1996 and launched “Power check” Batteries. It also introduced MACH3 and Duracell Alkaline” in 1998. To dispose of non-profit making divisions it sold its stationary products to “Newell Rubbermail”. Vision and Strategy of GILLETTE Mission Statement The Gillette Company is a globally focused consumer products a marketers that seeks competitive advantage in quality, value added personal care and personal use products. We are committed to building shareholders value through sustained profitable growth. Vision To build total brand value by innovating. To deliver consumer value and customer leadership faster, better and more completely than our competition. Core Value Integrity, Achievement, and Collaboration. Global Competitors Razors – Schick, Wilkinsons, American Safety razor and Bic Pen corp Pens – BIC, SA Dupont, and Papermate. Lighters – BIC and other local brands ToothBrush – Colgate Palmolive, unilever and other Local brands Batteries – Panasonic, Kodak,Maxell, Energizer and local brands Electrical appliances – GE, Black n Decker, Philips and so on. Gillette Strategy. The strategy of Gillette revolves around stability, growth and retrenchment. Stability Diversification High Profit margin Implementation of employee metrics Growth Branding R&D Compete in growing Retrenchment Premium Pricing Cost engineering Q According to the case what is the core business of Gillette, by using the Ansoff growth matrix how would you define Gillette’s growth strategy?
One of the most basic necessities of a man for his personal use is his shaving kit. Very few companies are as successful as the company started by KING C. Gillette (1855-1932) on September 28, 1901 in Boston, MA as American safety Razor Company. The modern day traveler today encounters a Gillette product portfolio far boarder and the worldwide presence far stronger than any envisioned by the Company’s founder who patented his inventions of the razor in 1904.
WHAT IS UNIQUE ABOUT GILLETTE
Around 1.2 billion consumer’s per day use the company’s products. It has a market capitalization of US$ 3.76 billion. It is ranked 129 by FORBES 500, 2002 issue. After Success in the US, King Gillette expanded the company to UK, Germany, Denmark, Italy and Canada by 1920. The company introduced brush less razor in 1937. Gillette introduced shaving cream in the US in 1940. For the first time the company introduced razors for ladies in 1944. In 1952, the name of American Safety Razors Company was changed to THE GILLETTE Company. The company diversified into stationary business by acquiring Paper mate, a leading ballpoint manufacture in 1955 for $15M. Further venturing into personal care it produced “Right Guard” deodorants in 1960. The company manufactured surgical manufacturer’s hypodermic needles in 1962 at Reading, England. In 1964, the company strategically reorganized into two broad lines: men’s products and others.
Gillette introduced stainless steel razors in 1965 across the US. To diversify into future brands, it acquired Braun AG in 1967 and moved into small electric appliances. It acquired 48% stake in SA Dupont Company and a manufacturer of luxury writing instruments and disposable lighters in 1971. For the first time in history of shaving razors, the company introduced TRAC 2, a twin blade shaving system, in 1971. Furthering its expansion operations, the company acquired “Jafra Cosmetics” in 1973 and increased stake in SA DuPont Company to 80%. It introduced “Cricket” disposable lighters in 1974. “Daisy” a disposable shaver was rolled out for women in 1974. “Good News” a disposable twin blade was introduced in 1976.
Gillette expanded ballpoint product line with “Eraser Mate” in 1979. This has the feature of erasable ink. It acquired ORAL-B Labs Inc. in 1984. Revlon in 1986 is acquired. It acquired Waterman in 1987. It then launched “Sensor excel” in 1992 and consolidated its stationary division by acquiring “Parker Pen holdings Ltd” in 1993. It then acquired “Duracell International” in 1996 and launched “Power check” Batteries. It also introduced MACH3 and Duracell Alkaline” in 1998. To dispose of non-profit making divisions it sold its stationary products to “Newell Rubbermail”.
Vision and Strategy of GILLETTE
Mission Statement
The Gillette Company is a globally focused consumer products a marketers that seeks competitive advantage in quality, value added personal care and personal use products. We are committed to building shareholders value through sustained profitable growth.
Vision
To build total brand value by innovating. To deliver consumer value and customer leadership faster, better and more completely than our competition.
Core Value
Integrity, Achievement, and Collaboration.
Global Competitors
Razors – Schick, Wilkinsons, American Safety razor and Bic Pen corp
Pens – BIC, SA Dupont, and Papermate.
Lighters – BIC and other local brands
ToothBrush – Colgate Palmolive, unilever and other Local brands
Batteries – Panasonic, Kodak,Maxell, Energizer and local brands
Electrical appliances – GE, Black n Decker, Philips and so on.
Gillette Strategy.
The strategy of Gillette revolves around stability, growth and retrenchment.
Stability
Diversification
High Profit margin
Implementation of employee metrics
Growth
Branding
R&D
Compete in growing
Retrenchment
Premium Pricing
Cost engineering
- Q According to the case what is the core business of Gillette, by using the Ansoff growth matrix how would you define Gillette’s growth strategy?
Please find the answer below.
ANSOFF GROWTH MATRIX:
Management teams and the analyst community use the Ansoff Matrix, also known as the Product/Market Expansion Grid, as a two-by-two structure to help plan and assess expansion projects. The tool specifically aids stakeholders in conceptualizing the degree of risk connected to various growth strategies.
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