STRATEGIC MANAGEMENT OT GILLETTE

Running head: STRATEGIC MANAGEMENT OT GILLETTE
STRATEGIC MANAGEMENT OT GILLETTE
Name of the Student
Name of the University
Author Note

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Answer to Question 1
The Procter & Gamble Company (P&G) is a multinational consumer goods based
corporation that has it’s headquarter in Cincinnati, Ohio. The organization was established in the
year 1837 by William Procter and James Gamble. The firm mainly specializes in providing vast
range of the hygiene based and personal care products to consumers in different parts of the
world. P&G had recorded total sales of 83.1 Billion Dollars in the year 2014 and the organization
had streamlined its operations in the same year. P&G had announced the acquisition of Gillette
in the year 2005 and this had supported the organization to become the biggest consumer goods
based firm. The acquisition of Gillette had also added different products to the vast portfolio of
the firm that include Gillette razors, Braun, Oral-B and Duracell (Gillette.com, 2020).
Gillette aims at fulfilling the grooming based needs of consumers in different parts of the
world with the help of products that are offered to them. The major preference is thereby
provided to the enhancement of the premium performance with the help of shaving experience
that offers value money. Gillette has been able to recognize that the various segments of a market
seek different product benefits and this further leads to the implementation of technologies for
the purpose of manufacturing suitable products (Gillette.com, 2020). The four major business
areas that are a part of the operations of Gillette include personal grooming, portable power, oral
care and electrical appliances. Gillette has been able to gain a unique brand position based on
shaving based needs that are fulfilled by the products.
Answer to Question 2
The Porter’s five forces framework can be implemented for the purpose of understanding
the different industrial forces that have an impact on the operations of Gillette. The performance

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levels of Gillette and the long term based survival are influenced in a huge manner by the
industry based forces.
Threats of the new entrants –
 The threats related to new entrants in the market are based on entry of new
players in the industry. However, the organizations require huge levels of capital
and investment of resources for the purpose of developing their operations in the
consumer goods based industry.
 The presence of a loyal consumer base is considered to be a major factor that is
able to lower the threats that are faced by Gillette from new entrants in the
industry.
Threats of substitutes –
 The availability of substitute products in the consumer goods industry is low in
case of the operations of Gillette.
 The threats faced by Gillette from the substitutes are also reduced due to the
presence of high quality products that are provided by the organization to its
customers (Faith & Agwu, 2018).
Rivalry among the existing firms –
 The levels of competition and rivalry that are faced by Gillette in the industry
are considered to be quite high due to the presence of large organizations.
 The formation of long term based relationships and making effective
investments in research and development are considered to be major factor
that have an impact on the organization.