1.

       What is Dollar Shave Club's business model and how does it differ from its
competitors?
Dollar Shave Club follow a B2C business model. It differs from its competitors on the
following aspects:
-          Dollar Shave Club’s value proposition is fair price and highly customer-centric
service. The company reduces the unfairness in razor price from monopoly by
setting a cheap subscription, $1 for a month supply of razors and blades. The price is
cheaper than the once largest shaving brand, Gillette in the US.
-          Market opportunity: Dollar Shave Club possesses more than 50% market on razor
blades. They plan to achieve a market space in Europe. With the acquisition of
Unilever, Dollar Shave Club does not face much financial difficulty in raising capital.
The company instead focuses on vertical growth in online marketing and branding.
-          Revenue model: The company follows subscription revenue model. They allow
customers to have razors and blades home deliver at a subscription fee of $1 a
month. Dollar Shave Club cuts down manufacturing cost by manufacturing products
inexpensively in South Korea and cuts out retail outlet cost by having an in-house
distribution.
-          Competitive environment: Shaving product is not a competitive segment. Dollar
Shave Club’s traditional competitor is Gillette, besides, Harry’s and other
subscription-based business are their direct competitor. The company’s market
position is the second largest shaving business in the US.
-          Competitive advantage: Dollar Shave Club gains first-mover advantage in shaving
product subscription. They leverage the high customer loyalty and retention rate.
-          Market strategy: The company is opposed to automated customer service
systems, they have real live people that helps customers out and can even make
jokes. This differentiates with other online models and create a positive CX, thus,
building a high customer loyalty. Dollar Shave Club builds a high commitment to the
brand and its members, their customer base is loyal enough to become an individual
ambassador for the company.
-          Organizational development: Dollar Shave Club has 300+ employees. They has
been focusing on IT infrastructure, including CRM platform, marketing automation
platform that sends out customer e-mails, and other customized applications for
order fulfillment, telephone-based customer support, machine learning and data
science.
-          The company’s management team is divided into functions and operations,
including 2 co-founders, CEO, VP of Operations, VP of Product, Director of
Engineering, Platform Services and Director of Mobile&Retail Product. Dollar Shave
Club built out its executive team with a Chief Digital Officer, Chief Technology
Officer, several other technology-focused executives, and a slew of new engineers
2.       What are the key elements of Dollar Shave Club's value proposition for
consumers?
Their products are inexpensive, which easily gets a high market penetration rate. The
company also
earns a high customer loyalty and retention rate.
3.       What revenue model does Dollar Shave Club use and why does it work for
them?
The company follows subscription revenue model. It works because their service is
inexpensive. They allow customers to have razors and blades home deliver at a
subscription fee of $1 a month. Dollar Shave Club cuts down manufacturing cost by
manufacturing products inexpensively in South Korea and cuts out retail outlet cost by
having an in-house distribution.
4.       How would you characterize Dollar Shave Club's online business strategy?
It is a very customer-centric business strategy, which follows a common trend of
today’s business, focusing on customer relationship.
5.       How have Dollar Shave Club's competitors responded?
Since Gillette lost their market share to 54%, they started to protect its position by
launching Gillette On Demand service, which allows customers to order new razors and
blades by text message, as well as receive every fourth order for free after three regular
orders. Gillette claimed to offer price points that are competitive with Dollar Shave
Club. Gillette also responded to criticisms; and add new features at no extra cost. They
also sued Dollar Shave Club on copyright infringement.