The Final Cut

Gillette and Wilkinson keep adding more blades to razors. “Razor and blade” business model works by selling an initial “master” product at a loss (razor), while making profit with “consumables” (blades).

Gillette won a patent for its double edge razor in 1904, another for the double-blade in 1971, before the three-blades in 1998. Now Gillette sells five blades, rear blade and battery power razors. Trends indicate Gillette will ‘invent’ an eight blades razor in 2015. Because Gillette acquired Duracell, it put batteries into razors, another consumable product within the master product. Wilkinson acquired by Energizer did the same.

I’m missing the benefit of such product, as I don’t find them much comfortable. Gillette recently became supplier of Oral-B. I’m afraid they will embed a toothbrush as well in the future. What worries me more, is that Wilkinson also markets tools for Circumcision for medical suppliers…

Business Pal

Although marketing gurus suggest to avoid doing business with friends, as it’s the easiest way to end a friendship, thousands of partnerships are created and run by friends.

25% of all European Small & Medium Enterprises are based in Italy, and despite what gurus say, most of them are friend run. Or better most of them are family run businesses. Take Barilla for example (a food company), who received the 9th annual “IMD – Family Business Award,” joining names like Lego, Henkel and  Zegna. Seems that family run businesses are more successful than friend run ones.

Maybe we should consider the following exception to the gurus advice: don’t start a business with a friend,  unless you’re planning to marry him/her.

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