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Published by:
Amity Research Centers (2017)
11 pages
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Dollar Shave Club (DSC), the monthly subscription business model, launched in 2012, was a social marketing as well as an entrepreneurial success. Its 'low-price, direct-sales model' disrupted the industry's move to 'high-tech, costly razors', which were sold through traditional retailers. The Founder, Michael Dubin's guerrilla YouTube marketing campaign with 'its schlocky, slapstick brand of humor' also became a viral success. In 2016, the DSC was bought by Unilever for USD1 billion in a move to enter the rapidly growing online market. Unilever, had in the past been adopting the traditional model of selling through retailers. With the emergence of e-Commerce and players such as the DSC, customers could buy directly from the manufacturers, thus eliminating the need for a third party. With this acquisition, Unilever hopes to gain insights into this emerging business model and adopt it for its own products. Experts believed that the move created a milestone in this industry and would change the traditional model of selling. How the companies involved, reap the rewards of this innovative business model remained to be seen.
Learning objectives:
1. Mergers & acquisitions. 2. Business model. 3. Sales model. 4. Synergies and challenges faced by the two players.
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