Startups Creating More Value with Vertical Integration

Image: Harry's Shave Club

​Corporate Challenge: Assuring startup success.

Ironbound Strategy: Startups that create value for customers, employees, and society can grow their brand presence faster than their competitors.

Ironbound Action: New York based Harry’s Shave Club is a startup that vertically integrated manufacturing to distribution from the very beginning. By owning verticals Harry’s was able to provide high quality products at lower than expected prices.  Owning verticals allowed Harry’s to create a second brand, Flamingo, to provide personal care solutions for women, and double their brand presence. When a startup is vertically integrated, it has similar advantages to the competition, but with nimbleness to outcompete them.  By ceaselessly creating value for customers and society, any brand can exponentially grow, even in slow growth spaces.

​* Harry’s grew from 0 to 2 million customers in 3 years. Currently Harry’s is worth over $1.4B. The shaving market is slow to grow at 4.6%.  The key to Harry’s success was to take market share away from competitors by creating an overwhelming amount of value for customers, employees, and society.