Strategic Management report Essay Example | Topics and Well Written Essays - 1500 words

Strategic Management report - Essay Example It is this factor alone that has got it 70% of the US market in 2000 and about 50% share of the market outside the US. Over the last 3 years Gillette has been trying to recover its lost glory that it enjoyed for the decade up to 1997. In 1986 its sales were $ 2.8 billion and rose to $ 9.08 billion in 1987. Since then it has hovered around the $ 9 billion and this stagnation has eroded its stock value but fortunately not its market share. Due to its innovative approach to product development which Gillette has maintained for over a century, it retains market leadership in this segment. Gillette has unsuccessfully tried to add to its product portfolio for over 50 year. The redeeming feature has been the Safety Razor sections for men and women. A SWOT analysis of the product also suggests that this core product range is the company’s real strength. The weakness is the quarterly sales strategy of loading sales to retailers. The opportunity lies in improving its sales strategies. There are really no threats to the company from are competition. While the majority of shares is held in public but a sizable stakeholders are employees, both present and retired ones. The single largest share holder is Buffet Warren who holds about 10% of the company stock. They are worried over the declining stock prices especially since 1997 through 2001. The decline has been sharp from a valuation of $ 4.8 billion to $ 1.9 billion. They need a quick turnaround or they fear the company will be a takeover target once again. Historically Gillette has always scored over the competition primarily due to its customer loyalty which has come about due to its innovations in products. This is its main strength even today. It also has a wide distribution base worldwide and its products range from entry level to premium level catering across all segments of customers. It can therefore rely on its R & D to continue to offer strong product lines in this core sector. It