The company has a strong branding position and capability which creates room for them to reach out to various international markets as they already have a competitive position in 60 countries. The acquisition on the other hand helped the company further create a strong product portfolio while they merged the best ones of both the companies together and this opportunity helped them pave way to better capitalization.
On the other hand, the company has room to maintain a low cost strategy in lieu of the prevailing recession, therefore, core customers or even barnacles for that matter would not be lost. Furthermore, strong supplier relationship could be built with the merger of both company’s supply chains and innovative strategies.
Recently, the image of not just Gillette but Accenture as well has been compromised due to the bad publicity issues focusing Tiger Woods. Thus, product personification has been adversely affected. Therefore, according to Gillette’s spokesperson, Damon Jones, the company would be limiting the role of Woods from its print and television advertisements or any other promotional activity linking him and the company (Fredrix 2).
Apart from that Gillette faces threat from various competitor’s especially from the EEA locations while the competitive leaders include, Colgate, Unilever and Beiersdorf. If market development and penetration issues are not tackled with on time, it could falter on the overall share.
Competitors continue to enter the existing market which the company has a share in while the cost of competition has risen too. Likewise, a sharp decline in the consumers’ disposable income poses a serious threat to the company’s profitability especially when market value has been declining through price discounting and low cost pressure is being faced from Wal Mart.
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