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How a US consumer products company unlocked the three tiers of noncustomers

Author: Mauborgne, Renée ; Henry, Olivier ; Kim, W. ChanINSEAD Area: StrategyPublisher: Fontainebleau : INSEAD Blue Ocean Strategy Institute 2009.Language: EnglishDescription: 2 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: This case study illustrates how new demand is created by looking to noncustomers instead of just competing for a share of the existing customers of an industry. The case focuses on how a large US consumer products company, Gillette, grew demand and reshaped the industry at the turn of the 20th century by unlocking the three tiers of noncustomers over time.Pedagogical Objectives: The case prompts the students to consider how new demand was created in the cell phone, computer and air travel industries by unlocking the three tiers of noncustomers. This case provides the conceptual backdrop to an accompanying interactive class exercise called “Blue Ocean Strategy Noncustomer Exercise: The Case of Gillette”, a full PowerPoint presentation that is free for instructor download at www.blueoceanstrategy.com. The PowerPoint presentation is built around Gillette’s introduction of the first safety razors with disposable blades in 1903, which created new demand by reaching beyond the existing customers of straight razors at home and in the barber shop. This case and the accompanying interactive Gillette exercise come with a comprehensive teaching note and are excellent for both MBA and executive audiences.
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Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>

The case prompts the students to consider how new demand was created in the cell phone, computer and air travel industries by unlocking the three tiers of noncustomers. This case provides the conceptual backdrop to an accompanying interactive class exercise called “Blue Ocean Strategy Noncustomer Exercise: The Case of Gillette”, a full PowerPoint presentation that is free for instructor download at www.blueoceanstrategy.com. The PowerPoint presentation is built around Gillette’s introduction of the first safety razors with disposable blades in 1903, which created new demand by reaching beyond the existing customers of straight razors at home and in the barber shop. This case and the accompanying interactive Gillette exercise come with a comprehensive teaching note and are excellent for both MBA and executive audiences.

This case study illustrates how new demand is created by looking to noncustomers instead of just competing for a share of the existing customers of an industry. The case focuses on how a large US consumer products company, Gillette, grew demand and reshaped the industry at the turn of the 20th century by unlocking the three tiers of noncustomers over time.

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