The Merger Between Gillette and Procter and Gamble Essay -- GCSE Busin

This merger is going to defecate the greatest consumer-products companyin the world Its a dream deal. rabbit warren BuffettThis was two companies with great products, strong management andterrific business models approach path together to create arguably the bestconsumer product company in the world Michael Barbaro, WashingtonPost1Introduction The merger between Gillette and Procter and Gamble is indeed astrategic move on the part of both parties. It is a corporatemarriage creating a union between male and female person product lines acontract valued at more than $55 billion dollars. 2 Commandingvirtually the entire market, Gillette has been the world take uper in theproduction of shaves and other shaving products. In 2004, theirglobal sh atomic number 18 of the razor market was 71.5%, nearly five times that oftheir nearest competitor. However, Gillettes reason runs oftentimes deeperthan simply shaving accessories oral care products, cosmetics, anddomestic appliances are a si gnificant party of their sales arsenal. With the acquisition of Duracell Batteries in 1995, Gillette hencebecame a major sales force in the battery market. In fiscal year2004, their net sales were $10.47 million, a 13% adjoin from the 2003 figure. Meanwhile, Procter and Gamble is the biggest manufacturer of domesticproducts, with over 270 brands that are categorized in 6 differentmarketing sectors laundry and cleaning (detergents), paper goods(toilet paper), viewer care (cosmetics, shampoos), food and beverages(coffee and snacks), feminine care (personal hygiene products) andhealthcare (toothpaste, medicine). care Gillette, P&G also exceededtheir 2004 financial expectations exceeding their sales drive by19.6%.3 Both companies share a culture of innovation and ahistory of cooperation and is a marriage that will most likely lead toprosperous financial returns in the years to come. Background The history of the Gillette caller is incredibly interesting, datingback to 1894 when it founder, King Camp Gillette, ferret outed the refugerazor. Gillette create the idea of a disposable razor whileworking as a salesman. In his travels and interaction with males ofall walks of life, Gillette stumbled upon the idea of the disposablesafety razor that men shaving on their own would find much moreconvenient and user friendly. Before the adve... ...tivity Drove Deal, The Washington Post, January 29, 2005.2 Editor, The a la mode(p) Mergers Why some will fly and others wont, Knowledge Wharton, jar against 30, 2005 online http//www.findarticles.com/p/articles/mi_m0EIN/is_2005_March_1/ai_n118352823 P&G 2004 proxy report http//www.pg.com/annualreports/2004/pdf/PG2004AnnualReport_Online.pdf4 William Nickerson Inventor of the Week, http//web.mit.edu/invent/iow/gillette.html5 ICFAI Knowledge center6 Ibid.7 www.pg.com/company/who_we_are/ourhistory.jhtm8 Ibid.9 www.mind-advertising.com/us/pg_us.htm10 The raise of the Superbrands, The Economist, Feb5th, 205, p. 63.11 http//www.agribusinessaccountability.org/pdfs/140_Procter%20Gamble.pdf12 http//www.fumento.com/bomis21.html Procter & Gambles Non- Neither Satan Nor (Sigh) Savior.13 Environmental Research Foundation, http//www.ejnet.org/rachel/rhwn349.htm14 http//www.pandgkills.com/shareholder.html15 http//knowledge.wharton.upenn.edu/16 Batchelor, Charles, Dealmakers eye repatriated funds, The financial Times, Tuesday, March 29th, 19.17 Ibid.