not working properly acquisition.
"is it a problem of Gillette or Duracell?"
no real growth
no clear strategic direction " the company had gone nowhere for 4 years"
Battery industry/alkaline battery industry
Technological segment: new development
Global segment: potential market for emerging market, sony and panasonic go into US
Entry barrier, paten is very important, we just have 3 players in American market
suppliers: who are they? chemical, zinc, raw materials (low bargaining power, because there are only 3 firms)
bargaining power of buyers: high, because they are able to do backward integration, 3 types of buyers, it is impulse purchase
substitutes, other types of batteries (rechargeable battery can replace) (dont need 10 substitutes, if 1 can replace it perfectly, it will be enough)
rivalry: 3 way competition war, action and reaction, marketing campaign, first movers, highly competitive
since 196 industry revenues have increased 7% but industry profit have decreased by 3%
conclusion: for the firm, it is not attractive because profit decrease, if they able to reduce marketing and rivalry, it will become attractive again.
For the firm who want to enter the industry, it is not attractive
rivalry is the only thing that can change
energize, sony, panasonic
Capabilities, current strategy
capabilities: R&D, marketin, manufacture rechargeable batteries, global brand name, reputation, priority with discounters and supermaarekts
current strategy: differentiation, but they have cost leader contender (Eveready) Cost leadership
Duracell make the battery more competitive before the acquisition
Gillette used to be the leader in the razor industry, 1-2 paragraph on competition
rynovac is the only company that is experiencing growth among the other firms, cost leadership, so custopmers are price sensitive
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