Gillette Safety Razor Division: Case Write Up Overview Ralph Bingham‚ VP new business development of Gillette Safety Razor Division (SRD) needs to decide whether to enter the rapidly growing blank recording cassette market. He is assessing whether Gillette can use its strengths in high volume manufacturing and marketing of mass distributed packaged goods to assume a leadership position in this new market. I recommend Gillette avoids entering this market Analysis The SRD commissioned consultancy
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In late 1970‚ after the split-off of the Toiletries Division‚ the Gillette Safety Razor Division (SRD) is considering a proposal to enter the blank recording cassettes market to try to achieve its assigned earnings growth target. The blade and razor business is mature and the SRD knows it won’t be able to achieve the growth target there‚ so it’s evaluating a diversification strategy to enter the new business. As in any diversification strategy‚ they are facing a new market‚ with a new product. The
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A. CASE ANALYSIS I. Statement of the Problem How can Gillette Company maintain and improve its profitability? II. Objective 1. To reinvigorate the blade-and-razor system market while keeping the lead in the disposable razor market. 2. To develop strategies that will continue to sustain and increase the market share. 3. To maximize the profitability of the company. III. Analysis of Case Facts/SWOT Analysis Strengths 1. Gillette invented the blade-and-razor system. 2. Has
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Gillette The Razor Wars Continue Overview Case Overview: Founded in 1901 by King C. Gillette‚ the Gillette Company has been extremely successful since it’s inception into the shaving market. Gillette did such a good job from the start in the shaving market‚ that the company went sixty-years before having any meaningful competition for it’s customers. In 1962 Gillette was enjoying a seventy percent share of the market and everything was looking rosy for the top shaving product company in the
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Bingham – Vice President‚ new business development‚ Gillette Safety Razor Division (SRD) Problem: Ralph needs to achieve company targets for earnings growth for his division by developing a new business product. Ralph has commissioned an extensive investigation into the blank cassette tape market and he views this market as poised for substantial growth and opportunity over the long-term range of ten to fifteen years. Ralph feels that his division is well positioned to enter the market through utilization
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Gillette Case Study 1. Background Synopsis Gillette is a razor and blade company started in 1901 by King Camp Gillette and was at the time the only shaving company available to men and women. According to the book‚ “Gillette has long been known for innovation in both product development and marketing strategy” (Ferrell). The company was the first to invent the disposal razor and the first 5-bladed razor. The company has lasted through many trying times and has invented many of the products
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Gillette is a company that has been known to the public for many years for innovation and marketing strategy. They hold a commanding market share in a razor and blade industry that is rapidly growing new companies and competitors. However‚ their innovativeness has not been the same since 2006 when they created the fusion 5‚ and their ability to market to people who do not want to pay the price for razors has caused them to look at new ways to maintain or increase its market share. Gillette was founded
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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:
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• The breakeven analysis using the margin of safety is an invaluable tool to assess the impact of the risk of a change in revenue or costs. It is particularly useful for reviewing financial forecasts and business plans. This is illustrated as follows – Forecast 1 Forecast 2 Forecast 3 A Sales volume in units 20000 25000 25000 B Selling price per unit $100 $100 $100 C Forecast revenue A x C $2000000 $2500000 $2500000 D Variable cost per unit @$60 E Variable costs A x D $ 1200000 $1500000 $1500000
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introduction Gillette know men in their grooming needs but not for woman. Men have been scraping their beards and moustaches off since the invention of dating‚ and had been using a variety of single edged razors‚ including the so-called "safety razor"‚ which had been introduced by Gillette in 1901. A mere 70 years would pass before the Gillette people could improve on things with the introduction of the Trac II razor‚ the first two-bladed cartridge. The theory was‚ that the first blade would
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