The Clorox Company Goes Green

by: Andrew Hoffman

Publication Date: May 13, 2010
Length: 28 pages
Product ID#: 1-429-422

Core Disciplines: Marketing/Sales, Strategy & Management, Sustainability

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Finalist and 3rd Place winner in the 2011 Oikos Casewriting Competition
In early 2008, Clorox released a new line of environmentally friendly cleaning products called GreenWorks. Following the success of smaller firms such as Seventh Generation and Method, Clorox targeted the niche market of green products, with an estimated market size of $150 million. Using its competitive advantages in distribution and economies of scale, Clorox priced its GreenWorks products below those of smaller competitors. Surprisingly, Clorox’s market entry did not steal revenue from smaller players, but instead caused the market for green cleaning products to explode, leaving Clorox with several strategic questions.