One of the most common brands that are seen in the personal grooming section for men and women is the Gillette company that is available in India. This is a company is owned by Procter & Gamble Ltd. This is a brand that primarily deals with the shaving equipment’s such as shaving kits and shaving creams. The main focus of Gillette is to innovate new products that can be used on a regular basis and cater to very specific needs of the customers. The company was founded in 1900 and they introduced the concept of disposable shaving blades and they have been credited with a number of firsts that they have introduced in the market such as the first ever smooth razors for women, twin blades shaving system, razors with lubrication and many others. Gillette has been a very strong contender in the market amongst all companies.
There is a need to do a SWOT analysis of this company as it will help in understanding of the market share and the spread of the market in the country.
The strengths of Gillette mainly include the as they have a lot of experience and they are a very popular name in the industry and therefore, they have the biggest advantages. The next strength that this company has is that they are always striving to innovate new products and provide innovativeness by augmenting changes and making it the core strength of the company. They strive to make products that will help in solving problems that are present in the public. They ensure to define products and have a problem-based approach that has a scope of variants. They also do have one of the most profitable businesses an they have the operations margins as high as 30%.
The weaknesses that are associated with Gillette is that most of their products are high priced and it may not be the most affordable for the middle-class population such as India. For India the products are high priced. The next issue that this company faces is that they have a lack of customer awareness of their products as there is so much focus on innovation there is a differentiation for the variants present and that may lead to a lack of awareness that the company may have. As the technology has advanced on the innovations that has been implemented, there are some spare parts that have a higher cost.
There are certain opportunities for Gillette that has surrounded the business with an increased opportunity to promote beauty. This company has a huge inflow of information has made customers that more conscious about their presence and appearance. This presents as a clear opportunity for the company to provide products that will help the consumers. There is a growth potential in this company that includes to address the needs of the middle-class person and providing products that can help them out and is affordable for them. This is an important aspect for the company that will help them in achieving a higher sales quotient and increase the scope of the products that they can offer to the middle-class population. By addressing the needs for the middle-class and there is a higher propensity to spend as the middle-class have more to spare and that will also increaser their propensity to spend.
The threats that can be detrimental to the growth of the company include non-sustainable spending that mainly companies are trying to build. Consumer spending patterns are unpredictable and they may change in the course of time as the new businesses keep changing and are difficult to create customizable business models. There is a lot of competition that Gillette has and they have faced many challenges over the years from companies such as Dollar shave etc. therefore, they need to asses themselves and ensure that they do not fall below on their profits and that does include gathering and being aware on information regarding the other companies.
The PESTEL analysis of the company of Gillette is important as it will help in highlighting the business tactics that are present by analyzing the various external factors like political, economic, social and technological aspects. The analysis is an important parameter that will help in improving the dynamics of the company and providing an insight into the functioning.
The political factors are an important part of the company and it is important for them to carry out and follow the laws and regulations that have been set by the government. The trade policies that are followed by the company also have an effect on the cost as well as the sales of an organization. The new innovations that are created by Gillette have been protected by the patenting that has been done and the import and export laws are also maintained and these laws set by the government need to be followed properly.
The economic factors state that Gillette has mainly covered the market and they develop themselves as the effective brand that provides the quality of products that they wish to have and they can help in buying high capacity of the stocks that provide material to the target company and it will be helpful in increasing their sales and revenue.
The social factors that impact Gillette are the grooming products that they sell and the ways in which it is received by the consumers. Both men and women use these products and that helps in grooming them well and that provides a sense of confidence to them and that aids the grooming process. These products are also associated with a message that will help the market of e target audience.
The technological factors mainly state that Gillette is the company that has the best and latest technologies that help in making grooming process easier. They mainly include the razors and blades that have been used since the inception of the company. They are the largest brand that help in the grooming market and the technologies that have improved and modified over the years have made it the best-selling product among the women and the men. With the upgrade of the technology that is present it is a product that is very well accepted by the population.
The legal factors of Gillette mainly state that this is a company that has had no public or civil suits for any wrong doings form the side of the company. They have followed as the rules and legal obligation that they are entitled to follow ensuring that while they carry on with business, they do not cause any issues in health and wellness of people. The metals that have been used in the razors and the blades have proper instruction and there has been consideration that have been made as well.
The environmental factors are also considered by the company that functions in this market and they have been known to be environmentally responsible in the nature of the business that they handle. This company has modified with times and tried to shift from metal razors to recyclable blades that can be used for more than one use and that plays a role in contributing to society.
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