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Bic Case Study

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T Peyros

on 15 April 2013

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Transcript of Bic Case Study

BIC's Strategy Table of contents BIC Case Study Presentation of the company

Place on the market

Analysis of the company

BCG Matrix Introduction 2012 turnover: 1898,7M€
by category:
- 32% Stationery
- 28% Lighters
- 18% Razors
- 17% Promotional products
- 5% Other products
by region:
- 40% North America
- 32% Developing countries
- 28% Europe
History Place on the market 1950: Launching of the
BIC Cristal 1953-1958:
Geographic expansion Headquarters in Clichy

Known as the leader of disposable products PORTER FORCES Competition New concurrents threat Bargaining power of suppliers Bargaining power of customers Threat of substitute products State power Strengths Weaknesses SWOT 1953: the incorporated company BIC is created 1969: Promotional products 1973: launching of the lighters 1975: Disposable razor 1981: BIC Sport 2008: BIC Phone Gillette,
Schwan Swedish Match,
Chinese razors,
Warner Lambert Entry barriers :

Manufacturing control of the products of these markets.

Ownership and purchase of patents or licenses or creation of partnerships.
Supplier of raw materials: not rare material, except oil

Possibility to create a vertical association Presence in 160 countries
3,2 million retail outlets
Strong fame
Good value for money
Conquests of overseas markets
Good financial health
Family company
Company worried about the environment Extension of contradictory ranges with the brand image
Absence of major innovations
Risk of cannibalization with the exchangeable blades
Factories in developed countries with strong production costs
Disappearance of points of sale Opportunities Threats SWOT Buyer switching cost is low => companies have to seduce them constantly

However the number of customer is huge The main substitute products are the same not disposable products

At the moment, there is a wave of " responsible consumption " which urges customers to buy fewer disposable products
Only for lighters, with the increase of the tobacco price, lighters are less bought Major opportunities : growth in the stationery and razors sectors.
Major threats : increment of the competition (especially in the lighter market). Appearance of new markets
Emerging countries without legislation or anti-smoking lobbies
New regulations for the sustainable development
Ecology if possible recycling Decrease of tobacco consumption in developed countries
Greater competition
Part of the writing decreases because of electronic keyboard
Increase of the oil price
Stock exchange fluctuations Increase its international presence
Develop on new markets
Innovate its range of products
Be more in adequacy with the ecology
Diversificate in the sport sector Market positioning Stationery:
- N°1: Europe/ Africa/ South America
- N°2: North America/ Oceania
Lighters: N°1 worldwide
Razors: N°2: Europe/ North America/ South America
Promotional products: N°2: Europe/ North America Other figures 3,2 million retail outlets
9198 employees
46 million products bought everyday in the world Strategy of the firm BCG Matrix Market share Market growth Stars Problem children Dogs Cash cows Cristal colours
Cristal pocket scents
Comfort 3 soleil Cristal Gel
Cristal Grip
Twin lady Tough Beard Cristal ball pen
Cristal shaver
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