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Saturday, February 17, 2018


Gillette: Fat, Happy and Vulnerable in Its Own Fiefdom
By Bob Herbold on his blog .... 

A recent article in Fortune magazine discussed the massive loss of market share by Gillette; moving from 71% when it was acquired by Procter and Gamble in 2005 down to its current 59%. It points out that a key reason for this was that Gillette simply missed the growing consumer interest in an adequate performing, and very reasonably priced, razor. Dollar Shave Club, Harry’s and Schick jumped on this trend. Meanwhile, Gillette simply stuck to its decades-old game plan of evermore sophisticated and complex razors at ever-increasing prices.

How did Gillette become so unaware of reality? Basically, it appears that Gillette was its own isolated fiefdom at Procter and Gamble, basking in prior success. They got away with this because competition was historically weak, and Gillette was making good profits, so P&G management left them alone. ... " 

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