Gillette's Challenges and Strategic Responses



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Code : COM0013

Year :
2004

Industry : Home Appliances and Personal Care Products

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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The Gillette Juggernaut Gillette made its beginning in Boston, US on September 28th 1901 as the 'American Safety Razor Company' and in 1902, renamed itself as 'The Gillette Safety Razor Company'. In 1903, Gillette first rolled out its razor shaving system and in the first year, it saw sales of only 51 razors and 168 blades. However, once it received the patent over the product in 1904, sales jumped to 90,844 razors and 123,6486 blades by the end of the year. The US Government, during World War I, ordered for 3.5 million razors and 36 million blades for its soldiers. In the mid-1930s, Gillette decided to diversify...

Gillette vs Schick In 2002, blades and razors sold to men in the U.S accounted for more than $1.4 billion in sales according to 'Information Resources Inc.' (IRI) that was expected to jump to $2 billion by 2004 taking into account the refillable razors business. Despite Gillette's 74% share of the $7 billion global wet shaving market, Schick's 12% share by January 2004, had posed an evident threat. Energizer reported sales of $703 million in the third quarter of 2003, a 59% increase while Gillette had an increase of just 11% over the corresponding period of the previous year, with sales of $2.41 billion...

The Road Ahead Although, Gillette, a much bigger company with overall annual revenues touching $8.45 billion in 2002, had plenty of resources at its disposal to compete with Schick apart from enjoying a huge customer base, Schick was aptly countering Gillette's products. "We have gone from being a secondary product in a drug company (Pfizer) to being near to the top of Energizer's strategic priority list. For decades we were a follower to Gillette, but that's not the role we are going to play anymore", said Alvin Robertson, Schick's Chief Marketing Officer...

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