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External Analysis

By | December 2012
Page 1 of 5
Problem:
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"

External analysis
Battery industry/alkaline battery industry

Technological segment: new development
General environment
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

competitor analysis
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 Integrated

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

external analtisis
the...

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