Parker Pen Company Essay Example
Parker Pen Company Essay Example

Parker Pen Company Essay Example

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  • Pages: 5 (1191 words)
  • Published: August 10, 2017
  • Type: Analysis
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George Safford Parker established the Parker Pen Company in Janesville in 1892.

In Wisconsin, the production of Parker's first fountain pen marked the beginning. In 1894, Parker made a significant breakthrough with "the lucky curve," a innovation that reduced leaks in fountain pens. Parker's initial marketing strategy focused on producing high-quality pens and positioning them as status symbols. As a result, Parker pens quickly became a favorite among signers, helping the company establish itself as a global leader, ranking first or second in the market.

The company achieved its current success by constantly researching and developing new products. One such innovation was the creation of Quink "quick drying ink," which contributed to the creation of their bestselling pen, the Parker 51. It was hailed as "the most perfect pen ever produced" and generated $400 million in reve


nue within three decades. By the end of 1980, Parker pens were being sold in more than 150 countries.

In 1987, the company relocated its central office to Newhaven, East Sussex, England. Later, in 1993, Parker was acquired by the Gillette Company.

The company that already had ownership of the PaperMate trade name acquired it further. In 2000, Gillette, which had become the largest in the universe for composing products with brand names like Sharpie and Parker, sold the company to Newell Rubbermaid.

PaperMate, Waterman, and Liquid Paper are some of the brands associated with the company. The key individuals involved in the company are George Parker, the founder, and James R. Peterson, the president and CEO of Parker Pen. Peterson is responsible for addressing the company's issues.

Instead of outsourcing work to over 40 publication houses, the head of writing instruments advertising a

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Pen Parker hired one that could handle all the job. Richard Swart, the vice president of marketing, worked for 3M before joining Pen Parker. Carlos Del Nero is the global marketing planning director for Parker, and the company's business involves Gillette Company, Newell Rubbermaid, and the UK subsidiary Ogilvy & Mather.

Main problem

Parker Pen Company faced challenging years where their revenues were not meeting expectations.

Thus, to implement new strategies, the company employed a new team of marketing managers. This highly qualified board initiated their efforts by centralizing the products in a standardized system. The objective of this central system is to eliminate multiple decision-making processes. However, this global approach resulted in a loss of over $20 million for the company.

Sellers did not conduct investigations, which resulted in a negative image for the company.


The company had some issues that were preventing its growth. In 1985, the CEO was fired, and the company implemented a decentralized system.

The Parker pen company can now adapt to changes and overcome cultural barriers worldwide by developing unique marketing plans for each country. This has helped Parker regain their reputation and establish their presence in the market.


The globalization process in Parker Pen company was unsuccessful until James R. implemented significant structural changes.

Peterson. The company had previously failed to properly globalise its operations, leading to a near bankruptcy situation. The company did not follow fundamental rules of globalisation, such as conducting thorough market research and considering political, legal, social, and cultural aspects of the market. By neglecting these factors, Parker pens failed to implement effective strategies that would appeal to consumers.

They only depended on a depreciated currency that enabled foreign

markets to purchase American goods. However, this situation would only be temporary and end when the value of the U.S. dollar decreased.

The globalisation procedure at the Parker Company failed for several reasons. One reason was that they did not centralise their operations and allowed their subdivisions to have creative and operational freedom. This resulted in a loss of corporate identity and became a major problem when different solutions were needed for each subordinate. Another problem in Parker's globalisation process was due to miscalculations or lack of vision in crucial areas. The supporters of globalisation underestimated the strength and impact of the changing market.

The company failed to anticipate the changes in the economic and political conditions affecting their foreign operations. They had relied on a strong dollar, which made it convenient for foreign customers to purchase their products. This reliance on foreign sales as their main source of income led them to overlook a significant event. As a result, they found themselves in a challenging situation with low domestic sales, numerous subsidiary companies, a large inventory, and no market share at all.

Despite their extensive range of over 400 different products, the company neglected to consider two crucial factors before embarking on their risky venture. Firstly, they disregarded the fact that they were operating in a period when Chinese mass production was inundating the market with more affordable and convenient goods. This was especially noteworthy due to the volatile economy and political situation, which fueled a greater demand for cheaper products. Secondly, despite offering a diverse selection of products, the company did not have a direct competitor to compete against the mass-produced pens imported from China. Instead,

they relied on their traditional products and distribution channels.

The Parker pen company is one of many examples of companies merging with larger companies, which is a common occurrence in the globalized economy. This acquisition has both advantages and disadvantages. For an established global company like Parker, the negative effects are less significant compared to the positive outcomes. One potential downside is the risk of losing the company's expertise and knowledge.

By adopting the regulations and practices of another company, Parker faces the risk of losing its own business expertise, which is a valuable asset in today's world and challenging to preserve when integrating with another company. Moreover, merging Parker pens with Gillette and Rubbermaid could lead to a precarious situation among employees. Relocating to different cities and adjusting to new managers profoundly impacts employee morale, as they gradually lose their connection to the company's identity. This loss of identity is detrimental since it serves as one of the primary driving forces for workers. The sense of identity within a company holds equal significance as one's individual identity outside of it.

While a merger of this nature could potentially result in the loss of customers or a decline in reputation, it also presents several significant benefits. For example, Parker Pens, a globally recognized company, would greatly expand its market share by gaining access to larger distribution channels.

Allowing them to create new customers is a difficult task in today's universe. A prominent name behind a brand signifies more resources, which in turn means more research for product development, more advertising, more promotional strategies, better market research, and all other activities that would help a company improve itself. Another crucial

factor is the support that Parker pens would gain by being part of the Rubbermaid holding.

This feature simplifies the introduction and acceptance of risks, while also providing a feeling of security to the customer. They understand that becoming a part of the leading global brand in writing instruments is not an effortless achievement. Therefore, trusting and relying on Parker pens is something they can and should do.

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