Build on the work with the attached business model canvas by discussing the patterns, the design, and the overall business strategy that it illustrates.

Running head: GILLETTE BUSINESS MODEL CANVAS 1

Gillette Business Model Canvas

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GILLETTE BUSINESS MODEL CANVAS 2

Gillette is an American brand owned by the multinational corporation Procter and

Gamble (P&G). It is based in Boston, Massachusetts. The Gillette brand deals with the

production of personal care products such as shaving supplies and both men’s and women’s

safety razors. Gillette Company owned the brand which was founded in 1901 before it merged

into P&G in 2005. Gillette currently operates on a global basis. Over the past years, since its

foundation and later its incorporation to P&G, Gillette has strived to provide effective shaving

experiences, operating under the tagline “the best a man can get.” It has stood with men for over

a century, through the evolution of its razors guided by innovation with the view of giving

customers the best shaving experiences. The company has a legacy of precision laid down by its

founder King C. Gillette. Through its long evolution period, Gillette has been able to create a

wide portfolio of blades, razors, disposable razors among other personal care products (Stowell,

& Kellogg School of Management, 2006).

There have been significant changes in the number of products offered by Gillette as

well as the product specifications. New and more innovative blades continue to be introduced

along the history of shaving as well as the shaving technology has kept on advancing. As a

result, the shape and size of the cartilage keep on changing. The introduction of the pivot

between the blade and the handle is the most recent improvement on the shaving experience.

Some of the current products supplied by the Gillette brand include razors, trimmers, and blades

such as the 5-blade family of razors, the 3-blade razors, and the disposable razors as well as the

Gillette STYLER suitable for the general purpose body hair trimming. Other personal care

products supplied by Gillette include pre and post shave products as well as a wide variety of

deodorants and body washes.

GILLETTE BUSINESS MODEL CANVAS 3

The nine building blocks of the Gillette business model canvas are represented below:

• Key partners – Gillette maintains key buyer-supplier relationships with its

manufacturers and retailers. The key motivation for these relationships is to ensure efficient

distribution chains from manufacturers to customers.

• Key activities – the core processes that govern the key activities in Gillette are

marketing and logistics. These are aimed at maintaining strong relationships with customers

while also boosting the revenue stream. Gillette also has a core competence in research and

development as a way of enhancing innovation in its products.

• Value proposition – Gillette core value to customers are a variety of innovative

blades that ensure efficient shaving experiences. These also include different types of razor

handles.

• Customer relationships – Gillette enhances relationships with its customers

through built-in lock-ins which ensure that customers have access to their desired products

• Customer segment – Gillette creates value for a mass of customers worldwide

including both men and women in need of body hair trimming blades and other personal care

products.

• Key resources – The key resources for the Gillette’s value proposition are patents

and brands. These intangible resources are a key to Gillette’s distribution channels and revenue

streams.

• Distribution channel – Gillette relies on its strong retail networks worldwide for

the distribution of its products. The retail channels ensure that Gillette integrates well to its

customers’ routines.

GILLETTE BUSINESS MODEL CANVAS 4

• Cost structure – The costs incurred by Gillette in its business are marketing costs,

logistics costs, research and development costs, and manufacturing costs.

• Revenue stream – much of the Gillette revenue stream contribution comes from

the razor handles and blades. The customization of these handles has contributed to their

performance in terms of raising revenue for the Gillette brand.

This Business Model Canvas provides a simple and quick overview of the company’s

structure, what it offers, its infrastructure as well as its finances and marketing. It gives a visual

framework for developing and testing a specific business model. Due to the simplicity and

intuitive nature of Business Model Canvas, it is easy to develop and refresh a business model.

From the Gillette Business Model Canvas, I was able to develop a key focus through the building

blocks of the business model. It is easy to identify how each aspect of the business relates to each

other and to the overall success of the business. The business model canvas offers a systematic

and formal way for viewing the effectiveness of each area of the business and its contribution to

the comprehensive success of the business. From the Gillette business model canvas, it is

possible to determine the areas that are a key to the success of the business such as R&D, buyer-

supplier relationships as well as its retail networks. The visual nature of the business model

canvas provides an overall picture of the business which enables an easy identification of the

possible areas of strength in the business and possible areas which need improvement (Marbaise,

& Probert, 2016).

The Business model canvas fosters an agile mentality during planning as its construction

is easy and focused. It focuses on the key inputs of each building block. It concentrates on the

quality rather than the quantity of the inputs on each building block. From the Gillette business

GILLETTE BUSINESS MODEL CANVAS 5

model canvas, it is easy to identify the factors that drive value to customers and hence the

revenue generators. For example, the razor handles and blades are the key sources of the revenue

stream for the business. From the Business model canvas, I was able to understand the reason for

Gillette to develop innovative blades and razors as these are the main contributors to the overall

revenue of the business.

The intuitive nature of the business model canvas is easy to consume and understand. It

uses common references and hence easy to articulate and gain feedback from a business model

and its constituent parts. The model canvas can thus be shared both internally between teams as

well as externally with partners and advisors. It is, therefore, a useful tool for building and

ratifying business models. The Business model canvas covers the primary driving factors in the

success of the business. The central aspect of the business model canvas is the value proposition

around which all other factors revolve. The value proposition determines the core behaviors that

guide all activities in the business. The success of the business depends on an engaging and

impactful value proposition which is resonant to the business model. From the Gillette business

model canvas, the value proposition of the business is guided by continued innovation and the

development of a variety of innovative blades. Innovation has been a key to the success of the

brand. Gillette uses technology to devise new blazes which contribute more to the revenue

support. (Pigneur, & Osterwalder, 2011).

GILLETTE BUSINESS MODEL CANVAS 6

References

Marbaise, M., & Probert, C. (2016). The Business Model Canvas: Let your business thrive with

this simple model.

Pigneur, Y., & Osterwalder, A. (2011). Business Model Generation (Summary): A Handbook for

Visionaries, Game Changers, and Challengers.

Stowell, D. P., & Kellogg School of Management. (2006). The best deal Gillette could get?:

Procter & Gambles acquisition of Gillette. Evanston, IL: Kellogg School of

Management.