[seanlinehan]

The razor industry is a primarily marketing driven market... And it's a tremendous one. One of my favorite acquisition headlines: "P&G to buy Gilette for $57B" [0]. I think Harry's strategy plays well into both what you're describing, though targeting the profitable, high-end sector of the market (as opposed to the ultra-cheap commodity razor market).

They recognized that the existing players on the high end were reaping above-average profits from their brand + distribution, but without strong product differentiation. If they could (and it seems they are) launch a strong brand with good quality products at substantially lower prices, they could earn a sizable chunk of the market. Cutting out retail margins and owning their factory should let them keep pretty strong margins even on the reduced price. Pretty epic.

[0] http://money.cnn.com/2005/01/28/news/fortune500/pg_gillette/