Clean Edge Razor Case Study

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Clean Edge Razor Case Study Summary of the Background and Facts This case explains the fictional struggle of a razor company, Paramount Health and Beauty Company (Paramount), who has been lagging behind in its industry to release innovative products. In result, its competitors are able to gain leverage by releasing niche products and catch up to Paramount in the super-premium arena. In 1962, Paramount entered the non-disposable razor industry with a spark and immediately entered into a class of its own by offering two different lines, Paramount Avail and Paramount Pro. The company’s profits really soared in 2009 with $13 billion in sales and $7 billion in gross profits worldwide. Currently Paramount is experiencing a major hurdle as the company has yet to release an innovative product or extension to their product in the last five years. Presently, the shares for non-disposable razors are growing approximately 5% per year but most of the growth in the market is contributed by innovative products. This outcome has also impacted Paramount’s sales. In hopes of discovering a solution, Paramount began testing a new razor with a unique function called Clean Edge that would be launched in January of 2011. Paramount felt that this new razor would be revolutionary in the market place, as it is the first of its kind. The Clean Edge razor includes a vibrating feature that stimulates the follicles to achieve a closer shave. The Clean Edge razor is intended to rebirth and reshape the

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