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The Disruption of Dollar Shave Club

Posted by Micah Tapman on Jul 27, 2016 3:43:07 PM
Micah Tapman
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Here's a great write-up by the New York Times on the underlying economics and social impact of the $1 billion acquisiiton of Dollar Shave Club by Unilever. "$1 Billion for Dollar Shave Club: Why Every Company Should Worry" by Steven Davidoff Solomon.

"Dollar Shave Club has over three million subscribers but only about 190 employees. Its razors were made in South Korea by Dorco. Distribution was initially handled in-house but eventually was contracted to a third-party company in Kentucky. What remained was a terrific design, marketing and customer service shop; and a business that was easily expandable to meet demand and that had a good niche with men who do not like to shop."

While the article takes a negative view of the concentration of wealth it's worth noting that the same issues that concentrate the wealth created by the sale of the company are the issues that allow virtually any entrepreneur to create the next DSC-like company. No need to be wealthy to create wealth when you can outsource the cost-intensive pieces of business.

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