Gillette Business Model | Business Model Navigator

Overview:

Gillette is a brand of men's and women's safety razors and other personal care products including shaving supplies, owned by the multi-national corporation Procter & Gamble (P&G). Based in Boston, Massachusetts, United States, it was owned by The Gillette Company, a supplier of products under various brands until that company merged into P&G in 2005. The Gillette Company was founded by King C. Gillette in 1901 as a safety razor manufacturer. Under the leadership of Colman M. Mockler Jr. as CEO from 1975–91, the company was the target of three takeover attempts, from Ronald Perelman and Coniston Partners. On October 1, 2005, Procter & Gamble finalized its merger with the Gillette Company.

Industries:

Consumer Goods

E-Commerce

Similar firms (based on pattern co-occurrence):

2 shared patterns

Business Model Patterns:

Lock-in

How they do it: Gillette pioneered the system of single-use razorblades as consumables. By being the only manufacturer of razor blades compatible with its razors, customers have no choice but to buy Gilette’s razorblades once they own the razor.

Razor And Blade

How they do it: Gillette is the name giver of the razor and blade business model. Selling its razors at a loss / at cost, it creates a lock-in effect and can make a profit with consumables compatible with the razor, which has a significantly higher profit margin.

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