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And yet, it was after the patents expired and when there were compatible blades on the market that Gillette finally went to this form of strategy.... Meanwhile, without the lock-in, users could just jump ship to a competitor at will, since the platform was so cheap.I'd argue, however, that it actually makes perfect sense, the more you think about it.This week, Gillette unveiled the latest weapon in the razor industry arms, featuring double-pivot Flex Ball technology.It's a far cry from the company's classic Aristocrat razor, introduced in the 1930s.This strategy has become so well-known that it's mentioned all the time and seen in lots of other industries as well, especially the technology industry.It's seen as the basis for console video games (consoles cheap, games expensive), printers (printers cheap, ink expensive), mobile phone service (phones cheap, service expensive), etc.Once the patents expired, and actual direct competition became more of an issue, then Gillette finally had to price to the market, capturing a much larger segment of the market, driving up revenue and profits because of it.
But, the example of Gillette suggests they could be better off not fighting it, but focusing on providing better quality that doesn't annoy users quite so much.
In fact, it went the opposite direction, and charged an extremely high price for the razors.