Bic Case Study

2208 Words Dec 4th, 2010 9 Pages
BIC Corporation: How a global icon develops its strategy

Case questionsAnalyse the BIC case study and discuss the following questions: 1. What strategy did BIC use to succeed in the ball point pen market? 2. How did the strategy change with porous point pens and disposable lighters? 3. Which of the new product options should BIC pursue? Why/why not? 4. On the basis of your analysis in Questions 1 to 3, what do you think are the strategic strengths and weaknesses of BIC? 5. What strategies would you recommend to Baron Bich for the future? | BACKGROUND
BIC is a world leader in the stationery, disposable lighter and shaver market. It sells its products in over 160 countries through office supply companies, supermarkets,
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Biro BIC New Zealand is based in Auckland and employs around 90 people. Apart from its marketing operations, Biro BIC manufactures plastic for pens and the hardware for lighters. It manufactures more than 30 million units each year. The first New Zealand CEO, David Farrelly, was appointed by the Baron in 1976. His key training for the role was watching for a day in the Paris office as the Baron went about his work.

Like all BIC operations, Biro BIC NZ operates autonomously. Forecasts and budgets are prepared but are not required to be sent to Paris. Results are reported to head office every six months.

BIC Australia and Biro BIC New Zealand are 100% owned by BIC UK, which is 100% owned by Societé BIC France. The Australian operation was originally 50% owned by Ansett (non-voting shares) but it sold these to cash up with the advent of the pilots’ strike in 1988.
THE DEVELOPMENT OF BIC'S WRITING INSTRUMENT PRODUCTS
THE WRITING INSTRUMENT INDUSTRY
To be successful in the writing instrument industry, products must be aggressively advertised and promoted, and distributed as widely as possible.

It is also important to have efficient operations which requires strong process manufacturing skills and wastage control. In this regard, BIC appears to be particularly successful. For example, it is believed that BIC's net income to sales ratio is in the region of 13%

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