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à They are undisputed market leader as they have the greatest market share all
over the world.

à They have been performing for more than hundred years so they have very
sound goodwill in the market.

à They have a very big distribution system. Their products are sold all over the
world and people purchase their products by asking the name of Gillette.

à Their research and development centers are very efficient effective.

à They are very innovative. All the time they are introducing new differentiated
products with high quality and more customer satisfaction.

à They are financially very strong.

à They provide quality products.

à They have very experienced and expert staff which serves as a competitive
advantage in the market.

à Their advertising campaigns are very attractive and customer attention

seeking.

à They focus target markets.

à They are very much concerned about their customers.

à They have close relationship with their customers.

à They have diversified business with 85 product categories that reduces risk
and increases profitability.

à Good displays and presentation of their products in Retail Stores make them
prominent among their competitors.

à They have a very formalized system for getting the feedback of the customers.
Ã They upgrade their products according to the changing environment keeping
in view their customer¶s need. For example, they launched shaving foams,
dry shaving systems which are time efficient and easy to use.

à They are very much strict in their values and their management gives value to
the organization.

à They take maximum social responsibilities for environment and society. In

this way, they contribute a lot to the society. They are highly appreciated in
their social contribution.

à They have no head to head competition in the market.

à They have latest inventory management system, which is all computerized. As

the inventory of the stock touches to the lower limit through computers.
Reorder point is easily indicated.

à The company believes on total quality management and try to add value in
their products at each and every step.

à They have open and strong communication system which helps their
stakeholders to get informed every time.

 

à They lack low price products.

à They are ignoring the underworld countries and developing countries, which
may be a greatest source of generating revenue.

à Buying capacity of Gillette products is low in many areas.

à They are ignoring niche markets. For example, they have not focused on
designing their products according to the specifications of commercial
shaving services centers.

à They have not given attention to Muslim community who need some special
type of razors for trimming their beards.
 Ã Due to smuggling effect, the distribution system is very much disturbed in
various countries. As Gillette¶s most of the products are lighter in weight
and smaller in volume, smuggling process is easier.


 


à Today, consumers around the world are embracing a growing number of

portable digital electronic devices that require high-power batteries.
Enhancing its growth prospects, Duracell offers strategic power-consulting
services to leading device manufacturers to further the inclusion of alkaline
batteries as a power source in these increasingly popular consumer devices.
More than 75% of the world¶s consumers of portable power use less costly
zinc carbon batteries, rather than better performing alkaline. Once converted
to Duracell alkaline batteries, these consumers can then trade up to the
advanced technologies and premium performance of the Duracell Ultra
brand. So this will be the great opportunity in future.

à Another large global business offering sizable growth opportunities for the
Company is oral care. It has been Gillette¶s fastest-growing business in
recent years. Oral care offers a comparable opportunity as consumers trade
up from regular Oral-b manual toothbrushes to the premium priced
CrossAction toothbrush, and then move on to power assisted Braun Oral-B
plaque removers ± which generate a highly profitable refill brush-head
business.

à They have high margin for diversifiable business because they are always
committed to high quality products and people know it very well whenever
they launch a new product or start a new business. They take good response
by the people due to their hundred years goodwill.

à They have lot of opportunities if they expand their business as forward

integration. For example, customer services by providing them cartridges
and maintenance facilities.




à As their products are distributed globally, every country has its own rules and
regulations about taxation and custom duties which may disturb the
company¶s pricing policies and consumer may be facing extra ordinary
 contradiction in pricing at different places. This is a threat for company¶s
products selling.

à In Islam, shaving of beard is forbidden so the growing Islamic Culture may be

a threat in their way.

à Open market operation is becoming a threat for Gillette Company as they are
quoting different prices in different regions of the world so people purchase
their stock in bulk from the countries where they have to pay minimum price
and they black market their products.

à Dollar value is unstable in relation with other countries currency conversions

which disturbs pricing of the company¶s products. Due to worst political
conditions all over the world, the economic activity and economic stability is
in trouble which may become a threat to company¶s future policies.

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à They have manufacturing units in limited countries but they should have
manufacturing units in other countries also. This may help them in getting
success in the business by reducing transportation cost and getting other
benefits also.

à They should introduce low price and medium quality products so that lower
economic community may also enjoy their products.

à They should also take into consideration their target market for lower income
people.

à They should come up with better promotional programs for the identification
of their products blended with advisory services for their consumers through
electronic media, in which they may give solutions to their health problems
and the remedy by the Gillette products.

à They should also consider niche markets and make product for small markets
too.
 Ã They should form their own feedback system for getting information from the
customers. For example, through Internet media, it will be quick, easy,
efficient, effective and direct responding.




c 
‘arren E. Buffett,
Chairman and Chief Executive Officer, Berkshire Hathaway Inc.
Edward F. DeGraan,
President and Chief Operating Officer, The Gillette Company
‘ilbur H. Gantz,
Chairman and Chief Executive Officer, PathoGenesis Corporation
Michael B. Gifford,
Former Chief Executive, The Rank Organisation Plc
Carol R. Goldberg,
President, The Avcar Group, Ltd.
Dennis F. Hightower,
Former Chief Executive Officer, Europe Online Networks, S.A.
Herbert H. Jacobi,
Chairman of the Supervisory Board, HSBC Trinkaus & Burkhardt KGaA
James M. Kilts,
Chairman of the Board and Chief Executive Officer, The Gillette Company
Henry R. Kravis,
General Partner, Kohlberg Kravis Roberts & Co., L.P.
Jorge Paulo Lemann,
General Partner, GP Investimentos
Richard R. Pivirotto,
President, Richard R. Pivirotto Co., Inc.
Marjorie M. Yang,
Chairman, Esquel Group of Companies

 
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%- 
Every day, more than one billion people around the world use one or more Gillette
products. From blades and razors to toothbrushes, from alkaline batteries to oral
care appliances, Gillette is the worldwide leader in nearly a dozen major consumer
product categories.

And they are constantly challenging themselves to develop new products. An

example is Venus, their new shaving system for women. Gillette for ‘omen
Venus combines breakthrough design with easy storage to redefine women¶s
shaving. In recent years, Gillette has introduced more than 20 new products
annually. Among these new products were the Gillette Mach3 shaving system, the
Duracell Ultra line of premium-performing alkaline batteries, the Braun Oral-B 3D
power toothbrush and the premium Oral-B CrossAction manual toothbrush.

Their portfolio of world-class brands is organized into three core businesses ±

grooming, portable power and oral care.

The Gillette Company, a Delaware corporation incorporated in 1917, was founded

in 1901 by King C. Gillette, the inventor of the safety razor. Gillette manufactures
and sells a wide variety of consumer products throughout the world. The following
are Gillette¶s primary businesses: The Chairman of Gillette James M. Kilts gives
his views about the company in his shareholders, letter as, ³There are few
companies with more powerful global brands than Gillette, and there are even
fewer companies that have so successfully used innovation to increase the market
strength and consumer appeal of their brands´.

† Grooming, including male and female, wet and dry, shaving products and
related toiletries.
 † Portable power, which includes alkaline and specialty batteries and cells.

† Oral Care, including toothbrushes and power plaque removers.

Gillette also manufactures and sells small household appliances. Gillette has
manufacturing operations at 38 facilities in 19 countries and distributes products in
over 200 countries and territories.





All of the Company¶s markets are highly competitive. Many of the

Company¶s competitors are larger and have greater resources than the
Company. The grooming products business is marked by competition in new
technology, as well as in price, marketing, advertising and promotion to
retail outlets and to consumers. The Company¶s major competitors
worldwide in blades and razors include Pfizer Inc., with its Schick product
line, and, in North America and Europe, its ‘ilkinson Sword product line;
and Societe Bic S.A. Toiletries is highly competitive in terms of price,
product innovation and market positioning, with frequent introduction of
new brands and marketing concepts, especially for products sold through
retail outlets, and with product life cycles typically shorter than in the
Company¶s other businesses. The portable power products business is highly
competitive in terms of product performance, innovation and price, and in
marketing, advertising and promotion, Competition in oral care products is
focused on product performance, price and professional endorsement.
Competition in small household appliance products is based primarily on
product performance, innovation and price, with numerous competitors.

&'

At year-end, Gillette employed approximately 35,200 persons, about 70% of

them outside the United States.

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In 2000, research and development expenditures were $179 million,

compared with $201 million in 1999 and $190 million in 1998.

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 The raw materials used by Gillette to manufacture its products are purchased
from a number of suppliers, and substantially all such materials are readily
available.