W. L. Gore & Associates, Inc. is a manufacturing company specializing in products derived from fluoropolymers. It is a privately held corporation headquartered in Newark, Delaware, with operations around the globe. Although best known as the developer of waterproof, breathable Gore-Tex fabrics, Gore’s products are also used in a variety of industrial and consumer products, such as electronic signal transmission, diverse industrial applications and medical implants.
W.L. Gore & Associates continued to thrive following the death of its founder, despite ongoing disputes over its patent to Gore-Tex. Indeed, the company had been battling claims against its rights to the invention since the early 1970s. In 1982, in fact, a federal lawsuit in Cleveland resulted in the removal of Gore's patent rights, but the decision was soon overturned and the rights were restored. In 1984, Gore filed suit against a Tempe, Arizona, company called IMPRA Inc., claiming that IMPRA had violated Gore's patent in the manufacture of its artificial arteries. The judge's research showed that a Japanese company had tried to patent a material identical to Gore-Tex in 1963 and had gotten the patent in 1967. After several years of weighing the evidence, the judge decided in 1990 to terminate Gore's patent rights. Gore managed to keep patents for individual Gore-Tex products and manufacturing processes, however. At the time the decision was handed down, Gore was capturing an estimated $700 million annually from sales of Gore-Tex-related products.
The loss of the Gore-Tex patent predated the scheduled termination of patent rights by about three years. Thus, it opened the door for other companies to begin manufacturing Gore-Tex products earlier than they might have otherwise. Gore's product-development arm was healthy, though, and the company sustained its growth. In 1991, Gore announced plans to build two new 60,000-square-foot manufacturing facilities in Arizona at a cost of about $10 million. By the end of 1993, Gore was operating more than 40 facilities and employing about 6,000 workers. Interestingly, the plants were all located in non-metropolitan areas because the Gores believed that such locations offered a higher quality of life for their employees. Evidencing the success of Gore's overall management philosophy, the company was named as one of the 100 best companies to work for two years in a row--a feat accomplished by only nine other companies at the time.
Going into the mid-1990s, W.L. Gore & Associates was operating 45 manufacturing and sales offices throughout the United States and in Germany, Scotland, and Japan. Gore-Tex products still accounted for the bulk of its sales. New Gore-Tex products being developed and introduced in 1994 and 1995 included Intervent, an allergen exclusion technology used, for example, in bedding; various surgical sutures used in vascular, cardiac, and general surgical procedures; and protective gear designed to reduce the spread of diseases like AIDS. The company was also developing and manufacturing various teflon-related electronics goods for industrial, defense, computer, telecommunication, and medical industries. Its four operating divisions at this time were Electronic Products, Fabric Products, Industrial Products, and Medical Products. The still-private company did not release financial information but claimed to have achieved compound sales and profit growth rates exceeding 20 percent annually between 1975 and 1995.
Innovation in the 1990s and Beyond
Gore's success continued into the late 1990s and beyond due mostly to the company's consistent drive to add innovative new products to its arsenal. In 1996 alone, the company was issued a record 89 U.S. patents. The company launched its Elixir line of guitar strings in 1997, and the brand quickly became the leader in the U.S. market. A new group of Gore-Tex fabrics made their debut the following year. Along with new product introductions in its medical division, Gore also became well known for its contributions in the development of fuel cell technology. In the mid-1990s, the company began developing Membrane Electrode Assemblies (MEAs), which were used in the polymer electrolyte, or proton exchange, membrane (PEM) fuel cell industry. The firm's first MEA was offered in 1995, followed by a second-generation launch two years later. Gore became the first commercial supplier in 2002 with the release of the Series 56 MEAs, which were used in stationary PEM fuel cells.
Gore entered the new century on solid ground. A March 2000 Industry Week article summed up the company's success with the statement that "few companies can claim that their products have orbited the earth, been on top of Mt. Everest, appeared on Seinfeld, and even helped mend some broken hearts." Indeed, with over 650 U.S. patents to its name and thousands across the globe, Gore's ability to cross over into cutting-edge technologies within the electronics and medical industries helped to secure its position as a leading privately held company. By this time, the company's medical products line, which included synthetic vascular grafts, interventional devices, surgical meshes used in hernia repair, and surgical sutures, had been used in over 7.5 million procedures.
While the company continued to develop new products, it also focused on cost-cutting measures and streamlining in order to maintain its remarkable financial track record. Fortune magazine reported in 2003 that Gore had posted a profit every year since its founding. In August 2002, the firm announced that it planned to sell off its fiber optic business. Gore sold its Glide Dental Floss unit to Proctor & Gamble the following year but continued to manufacture the product under the terms of the agreement.
W.L. Gore & Associates attributed many of its achievements throughout its history to the unique management structure that empowered company associates worldwide. Although the business environment surrounding the firm had shifted dramatically since its founding in 1958, Gore's basic guiding ideology set forth by the founder himself remained unchanged. The firm continued to adhere to its values--fairness, encouragement, holding steadfast to commitments, and open communication among associates--and with many years of success behind it, W.L. Gore appeared to be on track for good fortune in the years to come.
"W. L. Gore & Associates is ranked as one of the best Fortune 500 privately-held companies. From an overall standpoint, they have achieved great success, market dominance, continued innovation and profitability. As a privately held company Gore's incorporation of the lattice structure organization style offers success. This structure provides an atmosphere where employees can grow and develop, enabling organizations to have great employee retention. W. L. Gore & Associates is also recognized for having a dynamic leadership system. However, there are also disadvantages to their organizational structure. This structure creates an issue within the recruiting process. Other weakness in the area of growth and globalization cannot be overlooked. Considering the fact that W. L. Gore & Associates has no clear vision or mission must also be taken into account as a weakness. Basically, this lattice structure cannot be used as a blueprint for success. With the amount of fraud and dishonestly in the health care and banking industries, this lattice organization structure would not be very effective in these industries. Utilizing this structure would be an example of poor risk management. Industries such as these require a clear mission, structure, and chain of command in order to keep employees accountable and keep them honest."
W.L. Gore & Associates continued to thrive following the death of its founder, despite ongoing disputes over its patent to Gore-Tex. Indeed, the company had been battling claims against its rights to the invention since the early 1970s. In 1982, in fact, a federal lawsuit in Cleveland resulted in the removal of Gore's patent rights, but the decision was soon overturned and the rights were restored. In 1984, Gore filed suit against a Tempe, Arizona, company called IMPRA Inc., claiming that IMPRA had violated Gore's patent in the manufacture of its artificial arteries. The judge's research showed that a Japanese company had tried to patent a material identical to Gore-Tex in 1963 and had gotten the patent in 1967. After several years of weighing the evidence, the judge decided in 1990 to terminate Gore's patent rights. Gore managed to keep patents for individual Gore-Tex products and manufacturing processes, however. At the time the decision was handed down, Gore was capturing an estimated $700 million annually from sales of Gore-Tex-related products.
The loss of the Gore-Tex patent predated the scheduled termination of patent rights by about three years. Thus, it opened the door for other companies to begin manufacturing Gore-Tex products earlier than they might have otherwise. Gore's product-development arm was healthy, though, and the company sustained its growth. In 1991, Gore announced plans to build two new 60,000-square-foot manufacturing facilities in Arizona at a cost of about $10 million. By the end of 1993, Gore was operating more than 40 facilities and employing about 6,000 workers. Interestingly, the plants were all located in non-metropolitan areas because the Gores believed that such locations offered a higher quality of life for their employees. Evidencing the success of Gore's overall management philosophy, the company was named as one of the 100 best companies to work for two years in a row--a feat accomplished by only nine other companies at the time.
Going into the mid-1990s, W.L. Gore & Associates was operating 45 manufacturing and sales offices throughout the United States and in Germany, Scotland, and Japan. Gore-Tex products still accounted for the bulk of its sales. New Gore-Tex products being developed and introduced in 1994 and 1995 included Intervent, an allergen exclusion technology used, for example, in bedding; various surgical sutures used in vascular, cardiac, and general surgical procedures; and protective gear designed to reduce the spread of diseases like AIDS. The company was also developing and manufacturing various teflon-related electronics goods for industrial, defense, computer, telecommunication, and medical industries. Its four operating divisions at this time were Electronic Products, Fabric Products, Industrial Products, and Medical Products. The still-private company did not release financial information but claimed to have achieved compound sales and profit growth rates exceeding 20 percent annually between 1975 and 1995.
Innovation in the 1990s and Beyond
Gore's success continued into the late 1990s and beyond due mostly to the company's consistent drive to add innovative new products to its arsenal. In 1996 alone, the company was issued a record 89 U.S. patents. The company launched its Elixir line of guitar strings in 1997, and the brand quickly became the leader in the U.S. market. A new group of Gore-Tex fabrics made their debut the following year. Along with new product introductions in its medical division, Gore also became well known for its contributions in the development of fuel cell technology. In the mid-1990s, the company began developing Membrane Electrode Assemblies (MEAs), which were used in the polymer electrolyte, or proton exchange, membrane (PEM) fuel cell industry. The firm's first MEA was offered in 1995, followed by a second-generation launch two years later. Gore became the first commercial supplier in 2002 with the release of the Series 56 MEAs, which were used in stationary PEM fuel cells.
Gore entered the new century on solid ground. A March 2000 Industry Week article summed up the company's success with the statement that "few companies can claim that their products have orbited the earth, been on top of Mt. Everest, appeared on Seinfeld, and even helped mend some broken hearts." Indeed, with over 650 U.S. patents to its name and thousands across the globe, Gore's ability to cross over into cutting-edge technologies within the electronics and medical industries helped to secure its position as a leading privately held company. By this time, the company's medical products line, which included synthetic vascular grafts, interventional devices, surgical meshes used in hernia repair, and surgical sutures, had been used in over 7.5 million procedures.
While the company continued to develop new products, it also focused on cost-cutting measures and streamlining in order to maintain its remarkable financial track record. Fortune magazine reported in 2003 that Gore had posted a profit every year since its founding. In August 2002, the firm announced that it planned to sell off its fiber optic business. Gore sold its Glide Dental Floss unit to Proctor & Gamble the following year but continued to manufacture the product under the terms of the agreement.
W.L. Gore & Associates attributed many of its achievements throughout its history to the unique management structure that empowered company associates worldwide. Although the business environment surrounding the firm had shifted dramatically since its founding in 1958, Gore's basic guiding ideology set forth by the founder himself remained unchanged. The firm continued to adhere to its values--fairness, encouragement, holding steadfast to commitments, and open communication among associates--and with many years of success behind it, W.L. Gore appeared to be on track for good fortune in the years to come.
"W. L. Gore & Associates is ranked as one of the best Fortune 500 privately-held companies. From an overall standpoint, they have achieved great success, market dominance, continued innovation and profitability. As a privately held company Gore's incorporation of the lattice structure organization style offers success. This structure provides an atmosphere where employees can grow and develop, enabling organizations to have great employee retention. W. L. Gore & Associates is also recognized for having a dynamic leadership system. However, there are also disadvantages to their organizational structure. This structure creates an issue within the recruiting process. Other weakness in the area of growth and globalization cannot be overlooked. Considering the fact that W. L. Gore & Associates has no clear vision or mission must also be taken into account as a weakness. Basically, this lattice structure cannot be used as a blueprint for success. With the amount of fraud and dishonestly in the health care and banking industries, this lattice organization structure would not be very effective in these industries. Utilizing this structure would be an example of poor risk management. Industries such as these require a clear mission, structure, and chain of command in order to keep employees accountable and keep them honest."