Agenda

Module 1: Razor Industry Analysis

04/09/2023 Week 2

Week 4

New Application

Value Proposition Canvas A more detailed part of Business Model Canvas Described in Aug. 2012 post on “Business Model

Alchemist” blog

Based on “Jobs to be Done” approach Augmented by Customer Discovery (Blank) and Lean

Startup (Ries) Embodied in “Outcome Driven Innovation”

1/30/14 4

Our situation

Our client thinks that the wet shaving market is ripe for disruption. Overserved — “the blade wars” Too expensive — market dominated by CPG giants Disposables give lousy shaves Inconvenient to go out and buy replacements

Hired CompStrat Student Consulting Corp. to help define a new segment and/or value proposition

5

A brief history of shaving

Prehistoric times: sharpened rocks, clam shells 6,000 BC: invention of metal straight razor 1903: King Gillette introduces “safety razor” 1965: Wilkinson introduces stainless steel blades 1970: Wilkinson introduces single blade cartridge razor 1972: Gillette introduces Trac II cartridge razor 1975: Bic introduces single blade disposable 1998: Gillette introduces the Mach3 cartridge razor 2004: Schick introduces the Quattro 4-bladed razor 2006: Gillette introduces the Fusion 5-bladed cartridge razor 2010: Schick introduces the Hydro 5-bladed cartridge razor

6

A brief history of shaving

Prehistoric times: sharpened rocks, clam shells 6,000 BC: invention of metal straight razor 1903: King Gillette introduces “safety razor” 1965: Wilkinson introduces stainless steel blades 1970: Wilkinson introduces single blade cartridge razor 1972: Gillette introduces Trac II cartridge razor 1975: Bic introduces single blade disposable 1998: Gillette introduces the Mach3 cartridge razor 2004: Schick introduces the Quattro 4-bladed razor 2006: Gillette introduces the Fusion 5-bladed cartridge razor 2010: Schick introduces the Hydro 5-bladed cartridge razor

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Projecting forward…

8

Gillette’s Law?

Week 17/14/14 9

Breakout

Which of these innovations wasincremental?

Disruptive?

Safety is relative

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And this probablyoverstates it.

Industry Structure

11

Wet Shaving = $16.7B global market

Source: Technavio

Separate brands forhardware and software

Single brand;hardware only

Single brand forhardware and software

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13

14

15

16

Note: Harry’s bought the German factory that makes their blades.

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18

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Let’s compare

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Software company

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Week 1

Forces acting on a business

7/15/14 22

The Business

Power, vigor, and competence of customers

Power, vigor, and competence of complementors

Power, vigor, and competence of suppliers

Power, vigor, and competence of existing competitors

Power, vigor, and competence of potential competitors

Possibility that what your business is doing can be done

in a different way

Source: Grove, “Only the Paranoid Survive”, 1996; derived from Porter

Three Layer Model of Competition

23

Commodity

Benefits

Reputation

Price

Features

Image

24

Breakout

Where do all these productsgo in our model?

Where they compete

25

Commodity

Benefits

Reputation

Market Forces: Wet Shaving

Industry RivalrySupplier Power Buyer Power

Threat of Entrants

Technology &Pace of Change

Globalization

Threat of Substitutions

GovernmentSocial and

Cultural Shifts

26

The economics of shaving

Develop a model 2-blade shavers use 5 cartridges/month 3, 4, 5, and 6-blade shavers use 4

cartridges/month

Calculate total cost of shaving over a three-year period Include cost of handle upfront (if applicable)

Normalize to most expensive solution

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Total Cost of Shaving (Hardware only)

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Shave Duration Equivalents

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0.00

15.00

30.00

45.00

60.00

75.00

Number of Hydro5-D shave year equivalents

31

Breakout

Thoughts?