Gillette Company
Gillette Company is the leading Amer
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Gillette Company is the leading American manufacturer of razor and razor blades, commanding over 60 percent of this market (Vandeventer, March 9, 1994, p. 1010). The company also participates in other grooming areas, such as toiletries, hair care and Oral-B oral hygiene products. Gillette also is active in small household appliances through the Braun brand, and in stationery products through Paper Mate, Liquid Paper and Waterman. Gillette is an international company incorporated in Delaware. At issue today is how the company can continue to expand its market share in current markets, and how it can continue to maintain a high growth profile that has seen it successfully through the 1980s. This research examines these questions and offers recommendations based on the company's current position.Gillette was founded in 1901 and has carefully protected and nurtured its core businesses since that time. The company has expanded into businesses where there is room for growth and where new products can be introduced successfully. In the shaving field, which remains one of Gillette's core businesses, the company successfully introduced disposable razors, but recognized that disposable razors were contributing to the commoditization of the industry. As products are transformed into commodities, brand names have increasingly smaller effects on the buying decision of consumers, with the result that companies such as Gillette often lose market
. . .
un
26%
16%
Toiletries & Cosmetics
19%
9%
Stationery Products
10%
5%
Oral-B
7%
4%
The company's financial performance is impressive. It has had three two for one stock splits since 1986, with the result that 100 shares purchased at the 1985 high price would have increased in value more than six times by early 1994. Sales over both the past ten years and past five years have increased at a healthy 9.5 percent annually, but more impressive is the gain in earnings over the same time: 15.5 percent for the past ten years, and 18.5 percent for the past five years. This indicates that the company has learned how to gain the maximum benefit from its revenues (Royce, April 15, 1994, p. 823).
The company has maintained a strong current ratio since 1983, with the ratio never falling below 1.5 during the 1983 to 1992 period. In addition, Gillette has recently recovered from a highly leveraged position, with its long-term debt as a percentage of capital falling from a high of 99 percent in 1988 to 25.5 percent in 1992 (Vandeventer, March 9, 1994, p. 1010). These measurements indicate that the company is financially strong and able to take advantage of business opport
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Some common words found in the essay are:
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Approximate Word count = 2473
Approximate Pages = 10 (250 words per page)
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