Today, Gillette employs 28000 employees worldwide, has control over more than 60% of the world market and is present in 145 countries.
The Gillette strategy is global and, aims to foresee the future (notably by the Committee horizon) and concerns the world which went up to one nation, this is clearly evoked in the formulation strategy. With its long experience, Gillette could achieve its global strategy with safety. Also, a global strategy provides numerous advantages.
Market shaving system characteristics pervasive need and use:
The shaving system does not require a local adaptation of products. Moreover, consumption becomes increasingly homogeneous around the world by a convergence of needs. This peculiarity of the market shaving system enhances the hypothesis of standardization of production and of the marketing variables.
[...] Indeed, political, social and cultural factors are different depending on the countries. It is necessary for the company to consider this dimension through its global formulation strategy. Entry strategy Global opportunity: Emerging markets which offer possibilities for product growth by development and knowledge competencies such as: store management, use of technology with suppliers, merchandizing skills and logistics. Local competition: In order to gain a competitive advantage, the company has to consider the strengths and weakness of competitors in local markets in order to craft a strategy (rule of dominant player or weak player or launching a frontal attack) and to compete with them effectively. [...]
[...] Gillette expands its product worldwide very quickly in order to prevent the entry of new competitors and enhances its notoriety by its real template of the product. Thus, in less than one year, the Mach 3 has been introduced to America, Asia and Europe, and translated marketing components in 30 languages. Global alternatives strategies. To launch a new product on a global scale, it can be crafted in 2 different ways: a globalization of the offer: the company saves the same design, the same product and the same marketing program (standardization) or a globalization where some tactics are revisited with regards to local market characteristics. [...]
[...] As MC Donald, with Mach Gillette duplicates the part of it-value- creation-process on a global scale. To leverage its brand and to create market equity across geographic regions, it can provide, notably for experienced companies like Gillette, a sustainable competitive advantage. Intellectual capital represents the most determinant strategic resource to a global strategy. The product development has begun 7 years before the launch and the confidentiality about product properties allow to save the intellectual property and innovation. Technological, organizational and intellectual resources design the conception stage for product design (marketing plans, strategy, and industrial design).The firm's advertising department set up marketing program and human resources test the product with thousands of men. [...]
[...] Technological asset: a determinant resource illustrating the main competitive Gillette strength The Gillette strategy is global from the design to the setting in ray: The Mach 3 has been introduced after 5 full years devoted to R&D characterized by ceaseless product improvement, constant consumer testing around the world and the creation of a marketing strategy. For the Mach the goal is that the customer understands easily the value proposition which is offered, especially; any man has to feel concerned. Gillette wants to be sure of its blow and tries hard to limit the risks, notably by a significant time and budget to conceptualize new products years and 750$ million have been allotted for the development of Mach and a confidentiality of product technological properties, even for the majority shareholders. [...]
[...] Some factors draw the curve over the time, after the introduction stage, it is about competitors' reaction, legal and social factors and customer behavior. Moreover, uncertainty factors are: to meet immediately customer loyalty (unfamiliarity, uncertainty to buy) and competitors do not know what target to focus and how. During the growth, competition is more intense and competitors become larger. Mature industries involve an upsetting of competitive order. Technological breakthrough and new spurts increase the growth in some specific segments. Declining industries are unattractive but clever strategies produce substantial profits. [...]
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