Monday, February 25, 2013

Zippe - Diversification

The story of Zippo Manufacturing Company is a story of a bon ton forced to alter their business strategy to maintain its affectionate Americana image. George Blaisdell free-baseed Zippo in Bradford, Pennsylvania. While attending a dance, George witnessed a booster station struggling to light up a womans cigarette on a breezy day. That sparked the ingenuity to arrest a lighter that can withstand natures elements and become a durable outdoorsman.

Fabricated with a preposterous chimney design, this lighter was produced in 1933 with an unconditional lifetime guarantee. Zippo lighters became familiar in the United States military when the company ceased business of lighters for consumer markets and dedicate all manufacturing to the U.S. Military. During World War II, the founder shipped hundreds of Zippos to generals and war correspondents. These lighters were found to be inexpensive and reliable on the battlefield. An additional usefulness of the present that was shipped to the soldiers was that it was a black matte finish and accordingly it could not reflect any light and attract resistance attention.

The loyalty that Zippo has shown through their unprecedented lifetime guarantee and nationalism propelled them as the leader in the lighter manufacturing industry.

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Competing with companies like Bic and Cricket, Zippo had build a brand based on what the public wanted. gross sales have grown from $30 million dollars in 1985 to $cc million dollars today. These increased figures reflect a business model that was forced to adapt with society in order to await successful. Tar appropriateed towards the smoking community, Zippo lighters saw decline in sales as the linkage between cigarettes and cancer grew. Tobacco use is dropping 2 percent per year in the US and the 1998 production figure of 18 million lighters dropped to 12 million by 2012.

Zippo CEO Greg Booth recognized if Zippo Manufacturing Company was to remain paying and a company that continues to grow, diversification has to be a...If you want to get a full essay, order it on our website: Orderessay



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