Internal Strengths and Weaknesses4
External Opportunities and Threats5
Current Business Level Strategy6
Plan of Action8
Appendix 2-Industry Life Cycle Analysis10
Appendix 3-Competetive Forces Analysis pre 199610
Appendix 4- Competitive Forces Post 199611
Appendix 5-Analysis of Industry11
Appendix 6-Distinctive Competences for Gillette12
Appendix 7- Barneys VRIO Analysis12
Appendix 8- Internal Strengths and Weakness12
Appendix 9 – External Opportunities and Threats13
Appendix Ten- Current Business Level Strategies13
Founded in 1901, the first retail outlet was located above a fish store in Boston and was operated by King C Gillette. When the store first opened they sold only 58 razors and 168 blades in the first three years of operation. In order to expand the company from just typical manual razors to small household appliances, Gillette acquired Braun in 1964. This provided Gillette with the technology and innovation required to maintain market share in the industry. In 1971 the Trac II was introduced to the razor world followed by the Gillette Atra in 1977. These shaving systems created a want for a disposable razor, which had the features of a pivotal head and twin blades. This was ultimately an updated version of the Trac II, and came between the years of 1977-1988. The next razor Gillette introduced was targeted towards consumers who were looking for a closer, more precise shave. The Gillette Sensor system answered these requirements in 1990, followed by the Sensor Excel and the Sensor for women. With the acquisition of Oral B in 1994, Gillette became involved in the oral hygiene market, which was when Oral B and Braun combined their research and development departments and created the world best selling Braun-Oral B Power Toothbrush. In 1998 Gillette introduced yet another shaving system into the market, the Mach 3 Razor. In 2000, Gillette took a major hit losing approximately $428 Million by selling their Paper Mate division to Newell Rubbermaid. In the beginning of 2001 Gillette was comprised of four different business segments, which include small appliances, portable power, personal grooming products, and oral care products.
In the beginning of 2001, Gillette made a major change in corporate management by firing then CEO Michael Hawley for his inability to reverse the trends at Duracell. With the hiring of James Kilt, Gillette was able to seek new opportunities through a fresh mind and begin to recuperate from their loses incurred previously.
With the current revenue generated, Duracell seems to be in the Maturity Stage of the product lifecycle. Duracell has dominated the industry and has a strong competitive advantage over their competitors. With the developments of several different batteries, Duracell has many competitors, although they have sustainable advantage from strong research and development departments. The distribution of batteries is sold through three main channels; super markets, drug stores, and discount retailers. From the wide distribution channels of batteries, they are ranked 25th out of 200 in sales. With 75% of all alkaline sales resulting from impulse purchases, retailers market the batteries at impulse purchase locations such as the check out lanes at stores. Statistics from 2000 showed that discount were responsible for 52.5% of the total dollar sales of alkaline batteries, while drug stores and super markets were accountable for 23.8% and 23.7% of total sales respectively.
Internal Strengths and Weaknesses