Gillette Company

FINAL EXAM

INTRODUCTION

The Gillette Company is the world leader in male grooming, a category that includes blades, razors and shaving preparations. Gillette also holds the number one position worldwide in selected female grooming products, such as wet shaving products and hair epilation devices.

1. GENERAL ENVIRONMENT

All companies whether global, regional, or local operate in a macro-environment shaped by influences stemming from the economy at large, population demographics, societal values and lifestyles, governmental legislations and regulations, technological factors, and the industry and competitive arena in which the company operates. Most organizations do not have direct influence on its broad environment such as society, the economy, technology, global politics; it can shield itself from most threats and take advantage of opportunities as they present themselves. Many major companies have lost industry dominance, market share, or gone out of business because of their failure to recognize and adapt to changes in their environments, or by failing to be leaders in making necessary changes. The key point is that an organization needs to be in tune with its often turbulent external environment. There must be a strategic fit between what the external environment needs or wants and what the organization has to offer

a) Demographic Segment

Population Size

The world population is in the midst of an unprecedented transformation brought about by the transition from a regime of high mortality and high fertility to one of low mortality and low fertility. This demographic transition is responsible for the rapid and accelerating growth that the world population experienced in the twentieth century as well as for the slowing down of that growth and for the changes in the age distribution associated with those developments. Procter and Gambles currently sales over 300 brands in over 180 countries around the world to people from all ages, genders, ethnicity, social classes, and walks of life. The increase in the world's population provides a direct opportunity for P & G to increase the number of products sold each year . The emerging markets of Africa, Asia and Latin America present significant opportunities for Gillette because of the growth in the number of people that will be within Gillette target market. The graph below represents the percentage of the world's population mix by continent.

Economic Segment

The United States, the country with the world's largest economy, is currently in an economic recession. Since the recession began in December 2007, the real gross domestic product (GDP), the total value of U.S. goods and services