Gillette: Global Strategy and Regional Derivatives

Gillette: Global Strategy and Regional Derivatives

  • Case
Abstract

Gillette, a world leader in consumer-packaged goods, exercises a global strategy approach, integrating all aspects of its business: its suppliers, manufacturing sites, marketing, and after sale-services and support. As of the first decade of the 21st century, 70 percent of its sales, 72 percent of its profits, and 80 percent of its employees are outside the USA. Gillette assesses every product or service from the perspective of both domestic and international market standards. It had met world standards long before it entered world markets, and is a world class company even in local markets. It understands local and cultural differences and adjusts products and service accordingly. True to the seminal approach of metanational corporations, proposed by INSEAD's Professor Yves Doz, Gillette listens to and learns from locations far from its home base. It searches globally for concepts as well as customers and suppliers, stimulating innovation and easing eventual entry into new markets. As part of its global strategy, it focuses on areas of excellence in the context of worldwide possibilities, determining the synergies that exist across markets, and alliance partners as well as necessary local adaptations. In its quest to adopt a global strategy, Gillette recognizes the need for strong local integration across functions and divisions in every place it operates. This affects its approach to the creation of regional headquarters and facilities.

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