Junsang Lee

Professor Shin-Ping



1.      What is Dollar Shave Club’s business model and how does it differ from its competitors?


A.    The model of Dollar Shave Club is convenience. In other words, they focused on being a market that people can easily access; customer-friendly is their model. Hence, they care about reasonable price, easy access, and simple, effective design.

B.     They found huge opportunities online. They target young age people and internet. Since young age people tend to show frequent usage of internet, that was first difference comparing with other companies. They found another big possibility which is razor business. Razor is considered as one of the essential products in our lives. Comparing to other companies, Dollar Shave Club has found these possibilities.


2.      What are the key elements of Dollar Shave Club’s value proposition for consumers?


A.    As I mentioned earlier, Dollar Shave Club, they are creative. They made differentiation between them and other companies by considering customers perspective. In market, it is not difficult to find fancy, cool, and fascinating razor. However, those razors are expensive. We, perhaps, guess that expensive and fancy razors not only safer but also visual pleasure when we use them. On the other hand, Dollar Shave Club focused on customers perspective. It is daily and disposable product. However, why does it need to be that expensive? Expensive for what? Will it cost quite too much for younger generation people? Dollar Shave Club focuses on reasonable but well-functioning razor for every male who use the product.


3.      What revenue model does Dollar Shave Club use and why does it work for them?


A.    They earn money by customers subscription. They offer customers various types of subscription options: monthly subscription, bi-monthly subscription and so on. Moreover, you can also pause the subscription and subscribe it again later if we want. It works for Dollar Shave Club because they can earn money by selling products, furthermore, they also regular and guaranteed revenue for themselves.




4.      How would you characterize Dollar Shave Club’s online business strategy?


A.    They use online as their major weapon to promote their products. Their main focused customers are young generation male. They are familiar to use internet. Dollar Shave Club actively use internet resources as their strategy. Subscribing system is one of the proves that they are actively using internet; razor blades are disposable then users need to make purchase again and again. However, since they earn revenue by subscription, we do not need to order the products over and over we, but, just need to get the products when we need. Furthermore, even we can choose the term between two subscriptions; either we can decide to do monthly or bi-monthly or pause the subscription. For the advertisement videos, they send out more advertisement videos online than TV. 


5.      How have Dollar Shave Club’s competitors responded?


A.    As Dollar Shave Club grows up faster, other competitors also are needed to protect their position in razor market. One of the biggest razor blades companies, Gillette started to use text message to promote their new razor. Furthermore, they also got every fourth blades for free once customers successfully make purchase three times in a row. They also started to offer three business days shipment for Demand orders.




1.      Petsmart

This is B2C e-commerce company. Similar to Dollar Shave Club, they also offer lower prices than other places. The pat shop is operated by online market. Later on, they ended up with leading other original companies such as Pets.com and Pestore.com. They offer low price strategy, email marketing which is they promote their news via email to customers, share information such as interesting content and communities on their website. They allow people to access to their organizational structure and management once they follows the Investor Relation link from their About us page.

2.      If I go to offline market to purchase digital camera, I will go to Best Buy. In Best Buy, we can compare many different types of camera with our own hands. We can touch, we can click the button, and we can even try to take a picture for testing. We can literary examine what product I am looking for. To go through this process, I might not be able to finish all the work within one day. I even need several days to make a decision. Price is possibly more expensive if I do not have coupon but, it might be cheaper if I buy clearance or opened box comparing to online. On the other hand, if I try to buy digital camera online, then it might be faster and cheaper because I can use many different websites. It is disadvantage that I only can get visual information such as written information or picture or advertisement videos. However, I can open and visit many different webstores and compare in short period of time. Sometimes, I can also find some discount coupons. Since where I live and time limitation as a student, I prefer to use online shopping because I mentioned earlier that I can compare the detail of many different products, furthermore, I can compare the price of the products that I look for from various and different web pages.