Corporate entrepreneurship : the Gillette Company

Résumé du document

Entrepreneurship is the process of creating value by bringing together a unique combination of resources to exploit an opportunity. Corporate entrepreneurship involves the development within an existing corporation of internal markets and autonomous business units, producing products, services, or technologies that employ the firm's resources in a unique way to capitalize on identified opportunities for growth. Basically, there are 3 options for a company: Innovation, which includes creating and introducing products and services, or finding new business models and improving processes. Renewal, which includes revitalizing the company's operations by changing the scope of its business, its competitive approaches or both. Building or acquiring new capabilities and leveraging them to add value. Venturing, which means that the company will enter new businesses by expanding operations in existing or new markets. The most important thing when innovating is to invest in Research & Development, brainstorming, market studies etc. Innovation is essential to achieve higher income, to adapt to the developing environment, and to develop the company itself. I think it would be very interesting to see how innovation and entrepreneurship are managed in the Gillette Company. We will see that in Gillette, it's not only entrepreneurship, but rather Strategic Entrepreneurship, which represents highly consequential innovations that are adopted in the firm's pursuit of competitive advantage.

Extraits

[...] These leading global brands are the strength of The Gillette Company. They demonstrate the company's global commitment to growth through innovation, which will assure the Company's long-term competitive success as a world leader in the consumer products marketplace. Gillette's Vision and Values are the following: The Gillette Company's Vision is to build Total Brand Value by innovating to deliver consumer value and customer leadership faster, better and more completely than our competition”. This vision statement shows clearly what the aim of the company is and emphasizes the priority given to innovation. [...]

[...] In the Gillette Company, Innovation and Research & Development are very important. To be efficient anytime, employees of the research centers of Boston and Reading (England) shave only once they are at work, in order to test the innovations of the group and test the new products. In that way, they are in a first row to correct the products and adapt to their own needs. Indeed, Gillette workers test the products, but there are also some clients who test the products and innovations (they are of course paid to do so) in front of a tinted window. [...]

[...] I think it would be very interesting to see how innovation and entrepreneurship are managed in the Gillette Company. We will see that in Gillette, it's not only entrepreneurship, but rather Strategic Entrepreneurship, which represents highly consequential innovations that are adopted in the firm's pursuit of competitive advantage In the razor and blade's market, it's essential for the company to be on the top of the market regarding innovations. Let's have a look at what Gillette is doing in terms of entrepreneurship and innovations. [...]

[...] There is an integrated battery which makes micro poundings. Again, this innovation has demanded hundreds million of dollars and around 70 patents, to remain the only ones to propose such a product on the market. Basically, since the beginnings of the company, Gillette has been a pioneer in its market segmentation, and has held improves its leadership position through the company's strategy, which aims at managing the business with a long term and global perspective. This is one of the reasons of Gillette's success and longevity. [...]

[...] Conclusion We have seen that innovation and corporate entrepreneurship are essential in the Gillette Company, because the market is in constant change. The market environment is more and more competitive and it's quite hard to remain at the top on this segment, as the demand is always changing. But in fact, Gillette will always have clients because shaving is a hygienic need. Nowadays, people pay more and more attention to their appearance and to hygiene. There will always be a demand for razors and blades, as statistically, men's beard hair grow around 0,6 mm per day, and more than 8 meters in their entire life. [...]