Gillette Case Study

Gillette Introduction

Swot is a powerful tool that assists organisations to evaluate their internal strengths, weaknesses, opportunities and threats. This assists in understanding and creating strategy that assists the organisation to grow. PESTLE is a tool that is used to evaluate and understand the external factors that affect the organisations and can have an intense effect on the organisation. Gillette is an organisation that deals in personal care products and safety razors along with other shaving supplies. There has been seen that the organisation is facing intense competition from the competitions. The SWOT and PESTLE have been done in the study to understand the internal and external factors impacting Gillette.

Table Regarding Gillette

Gillette Swot

Table 1: Swot of Gillette

(Source: Created by the author)

Gillette Analysis

As per the case study of Gillette, the brand image of Gillette has been powerful in the market which leads to increased trust of customers. As per the case study of Gillette, the margins at which Gillette operates is high which proves beneficial for its stakeholders and consumers. The distribution and supply chain network of Gillette is optimised and efficient that leads to meeting the demands of the market easily. Gillette has been seen to be engaged in continuous innovation to meet the demands of the customers.

As per the case study of Gillette, the choices of shaving and grooming products provided to the customers are lesser than its competitors which lead the customers to shift to other competitive brands. The pricing of the products of Gillette is high for middle class which leads to a shift to different organisations. The organisation has been unable to foresee its products demands, which leads to losses to the organisation. As per the case study of Gillette, the challenges created by the new entrants are not being properly faced by Gillette, which has led to a decrease in the profitability and customer base of the organisation.

The middle class is seen to spend more on grooming which creates opportunities for Gillette. The increased expenditure of the people has also created opportunities for Gillette to create new products that would appeal to this class. Gillette can try to increase its market by expanding its periphery to unexplored areas. The increased pay scale of workers has led to greater expenditure by organisation. The new entrants are posing great threats to Gillette which needs to be handled for increasing their market share.

Gillette Pestel

Table 2: Pestel of Gillette

(Source: Created by the author)

Gillette Analysis

The Brexit issue would lead to decreasing the way people spend and also impact Gillette as trading tax would be imposed in the country. The free trade agreement between nations leads to benefitting Gillette through provision of easy supply to different nations. As per the case study of Gillette, the destabilisation of political area due to Brexit issue would lead to strict rules and regulations for the organisations that would lead to creation of issues for Gillette. The Brexit is expected to increase VAT by 5%, which would lead to increasing the prices of products of Gillette that would lead to decreasing profitability for Gillette. The expenditure capacity of the people would also decrease as currency value is expected to decrease by 20%. The GDP rates would also decrease as a result of decreased currency value and increased taxes which would lead to lower profitability and customer base by the organisation.

As per the case study of Gillette, it has been active in online market for promotion and selling its products, this leads to benefitting the organisation as people are more inclined towards online marketing. The customer loyalty towards Gillette proves fruitful for the organisation. The consciousness towards grooming by people is increasing which leads to increased opportunity for Gillette. As per the case study of Gillette, it has been successful in following the legal rules and regulations, which positively creates an image for Gillette. As per the case study of Gillette, the organisation needs to optimise its waste management procedure and the increased demand for renewable energy may lead to hitting the financial part of Gillette.