Final answer:
Dollar Shave Club's competitive advantage over Gillette comes from its subscription-based model, effective use of social media marketing, and brand image. They offer convenience, affordability, and a direct-to-consumer approach that reduces costs and improves customer connections.
Step-by-step explanation:
The competitive advantage of Dollar Shave Club compared to its key competitor Gillette lies in its innovative business model and marketing strategy. Dollar Shave Club disrupted the traditional razor market by offering a subscription-based service that delivers razors and other grooming products directly to consumers at a low cost.Dollar Shave Club leveraged social media marketing effectively with their viral video campaigns, creating strong brand recognition and a personal connection with customers. Additionally, they focus on convenience and affordability which appeals to a sizable segment of the market that finds traditional shopping for razors to be time-consuming and expensive.By consistently presenting a brand image that challenges traditional masculinity and champions a more accessible and irreverent tone, Dollar Shave Club created a distinct market position. This approach, coupled with cost savings from bypassing the retail supply chain, has given them a substantial competitive edge over Gillette.In conclusion, Dollar Shave Club's direct-to-consumer model, coupled with strong branding and marketing, has created a unique value proposition, leading to a distinct competitive advantage in the razor market.