A Closer Look at Clorox
Over the course of the last decade (2006-2017), each vertical industry has operated within a well-
defined pattern of performance. As shown in Figure 6, the margins for retail averaged 7%, while
personal products were 10% and consumer products household goods were 16%. While many in the
industry believe that there was significant improvement in data sharing and collaboration within the
consumer value chain over the past decade, this was not the case. Instead, each industry operated
on its own effective frontier. Clorox was attempting to build a value network of products from personal
products and household products while driving growth with retail.
Figure 6. Orbit Chart Comparison of Personal Products, Household Companies and Broadline Retailers (Period of
2006-2017)
The addition of product portfolios in segments with lower margin and turns affected the overall Clorox
results, as the company drove a growth strategy. Using value stream mapping, the company
remained competitive against the peer set within household products.
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