Managing Daily Credit Cards Flow -Business Finance Basics

You run your business in the country? What we do, if you do not innovate. It is the "innovate or die" you know. Products life cycle. To close the door. You have to constantly provide new products to make your business is young, vital and viable.

Gillette Innovation Strategy

Let us examine the fruits of an innovation strategy for Gillette razor blades. This is a list of innovations, Gillette over the years:

* Holice invented in 1895
* Razor marketed specifically for women, 1916
* Razor dispenser 1946
* Stainless steel blades 1963
* Double-blade razor in 1971
* Disposable double-blade razor in 1976
* Razor pivot point 1977
* Razor with lubricating strip, 1985
* Razor with spring-loaded knives 1990
* Razor with microfins 1995
* Razor with three blades 1998
* Manual Razor with battery 2004
* Razor with five blades 2007
* Razor with rear trim blade 2007

Gillette upgraded regularly to provide fresh new products. There was only an invention, but the power of innovation. In 1999, Gillette is the market value was $ 43 billion U.S. dollars.

What is innovation strategy look like?

Your innovation strategy should be an integral part of your business. SWOT analysis is an excellent starting point. SWOT stands for strengths, weaknesses, opportunities and threats. When you know that the most important factors that could affect their business on good and evil, then it is time for innovation plan.

Consider how Gillette executives to gain access to innovation in 1960 years. Their main product, razor, it is no longer covered by patent protection. It comes a few competitors in their market space. Management challenged this threat head. Their goal was to upgrade their core product differs from its competitors. As a consequence, introduces a double-bladed razor in 1971.

The new product is a success, its competitors, but it soon learned to duplicate. This threat is continuous innovation to stay ahead of the game. Gillette introduced to strategic innovation purpose was to serve 40% of their revenues from products within the last 5 years.

Innovation Strategic Model

Let's make a plan for a possible innovation in 1960 to Gillette:

Strengths:

1. Great products for shaving
2. Strong demand for products.
3. Efficient production facilities.

Weaknesses:

1. Lack of diversity in products

Threats:

1. The growing competition for key products.

Opportunities

1. Products for women.
2. The increased value of products for consumers.

From our SWOT analysis, we as Gillette management to plan these innovations:

1. Target: 40% of revenues from products within the last 5 years.

2. Create diversity in the product line by introducing products for women.

3. Developing new products is still before the competition.

The following action plan has been used to implement innovation plan.

1. Commit a significant amount of resources for research and development in innovation of new products.

2. Create a diverse group of innovators from different cultures and environments.

Gillette actual realization of their innovation strategy has resulted in research and development centers in the U.S., Britain, Spain and Germany.