Drivers of Gillette's Reverse Innovation Strategy
Added on 2019-09-19
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GILLETTECase StudyInternational MarketingStudent[Pick the date]
Case Study: Gillette 11)What were the major drivers of Gillette’s reverse innovation strategy? Do you think Gillette compromised the benefits of standardization to achieve localization – would you consider this a long term success or a short term gain strategy? Justify your answer. AnswerReverse innovation is also known as trickle-up innovation. This is that innovation which is seen and used first in the developing world and then it is spread to the industrialized world. Gillette used this strategy in the country India which is a developing nation and it captured 50% of the Indian shaving market in the time span of 6months from the introduction of Gillette guard (Sebastian, 2013). The major drivers of Gillette’s reverse innovation strategy were:The company researched the Indian market and they found that Indian men purchased and used the razors on daily basis. So, they found an opportunity in the market of India where they planned to introduce a razor with blades and very effective. The company also found that the Indian men were using a razor which had double edged blades but they lead to frequent cuts as they got rusted easily. Therefore, the company introduced a comparatively higher price product but between than the existing products. The company had a good market share in US but the market share was low in India which motivated them to capture the market of India by introducing a new and affordable product. Since this new products was a result of the innovation of the company, so it wanted to introduce it in a low income country where the people “need” this type of product and they can also afford
Case Study: Gillette 2it. Gillette was confused between introducing it in US or India so the industrial analysis for both the markets was conducted and India was more attractive in terms of demand, need, target customers etc. (Sebastian, 2013). Therefore, these were the major drivers of the Gillette’s reverse innovation strategyNo, Gillette did not compromise the benefits of standardization to achieve localization because:When the company customized its product and changed the strategy to suit and meet the needs of different audiences, it built a reputation in that country. This reputation is not built if the company is offering the same products in all the markets. This is because; the customers do not feel associated with the product and the company if they feel that the company is not making any effort to satisfy their needs. With localization, the facilities of the company can be developed as per the demands of the market. In India, the demand for razor and blades is different from that of USA. So, ifthe company is not localizing and building its facilities as per the Indian market, then it may lead to wastages, loss of resources etc. This is a long term success strategy. When the company will localize and cater to the markets of different countries, it will be able to establish its operations and facilities in the entire world. With standardization, if there is problem with any one thing, the operations of the company in allcountries suffer together.
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