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So it's a myth, because Gillette didn't ALWAYS make their margins on the blades? I don't see the logic. They're still giving away the razors with one blade and

• michael_dorfman 16y ago
  The point is that their current business model (give away the razor, sell the blades) is not the secret of their success-- that during the time they had explosive growth and became dominant, they actually had a very different business model.
  • JoeAltmaier 16y ago
    Did I read it wrong? Explosive growth occurred WHEN they switched to the classic model (from the patent-protected model).
  • napierzaza 16y ago
    It may or may not be the "secret". The fact is that it's a well known business model (so not a secret at all), it's actually so well known that it IS the example used when describing that business model. Whether or not it's the ONLY reason they are succeeding it a pointless argument to make. Businesses are complicated enough that single reasons for success/failure are useless. But they are a successful business that was able to attain success with that model. So it's possible isn't it? TLDR: A badly run business may not succeed with that model. But a good one can. Gilette is an often used example.