Zippo Case Study: Where Have All The Smokers Gone?

Abstract

The primary subject of this case concerns Zippo Manufacturing Company, the company famous for its Zippo windproof lighters with their lifetime guarantee and the distinctive “click” when opened.  Today, the company continues to manufacture and sell lighters from its main facility located in Bradford, Pennsylvania.  The company has expanded into the production of high-quality hunting, pocket, and utility knives as a result of the purchase of W.R. Case & Sons and, through a subsidiary, Zippo Fashion Italia S.r.l., it sells leather products.  This case presents an historical development of the firm taking it to its current day position and noting current challenges and future opportunities facing the company.  A secondary issue confronting Zippo involves changes in American culture that have affected this company; more recent issues for Zippo include problems related to the Department of Transportation’s rule governing the shipment of hazardous materials and problems resulting from the manufacture of cheap knockoff lighters being produced in China.  This case was written for use in a Strategic Management class.