Dollar Shave Club Nails it with Disruptive Biz Model

If you’re a fan of John Zagula’s and Richard Tong’s The Marketing Playbook you’re probably familiar with the Stealth Play. The Stealth Play is a business move that embodies the phrase, “if you can’t beat ‘em…join ‘em…or at least stay out of their way.” This play is the one to rely on when your opponents, or other businesses in your vertical, are drag-racing to the top –  while the attention is on the bigger players you find ways to improve your business model without getting caught in the middle.

A perfect example of the Stealth Play? The Dollar Shave Club, a startup that launched two weeks ago with a rock-solid business concept. Here’s how it works – for just $1 per month, customers receive one month’s worth of razors delivered to their doorstep. It’s simple, and it was all developed while Schick® and Gillette® were busy competing over which company could create a razor with more blades and more flair.

The Dollar Shave Club is able to disrupt the razor marketplace by meeting a need that most people have – the need to shave – and doing so with a simple, yet effective strategy that makes their concept viable. Another brilliant part of the concept? The product already exists. You see, Dollar Shave Club isn’t reinventing the wheel, but rather just how much people should have to pay to ride the wheel.

Oh, and we can’t neglect to mention the hilarious viral video released by Dollar Shave Club, as it garnered over 2 million page views in just four days on YouTube.

-Jennifer Johnstone

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1 Comment
    • Johnny Chan
    • April 23, 2012

    I love the revenue model here. I think pricing is one of the next frontiers of innovation, especially with how fickle demand creation can be. Imagine a world with dynamic pricing models and disruptive penetration or skim pricing for products that run on LTV – it could help shape a new behavior (and expectation) of buyers.

    Thanks Jennifer for the post! Very useful.


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