Overview and problem identification:
The CEO of Gillette James Kilt was looking for new and innovative plan to turnaround Gillette’s Duracell division effectively. Duracell has become a drain on Gillette’s performance and brought an end to Gillette’s impressive earnings growth history. Kilt needed a new strategy to recommend to the board to turn Duracell around and return Gillette to its former reputation. Analysis in brief: External and competitor analysis:
According to the case, batteries are simply an electrochemical container of stored energy that is used on demand. It has been used ever since the 18th century; it was widely used in telegraph systems. Disposable market is what many companies, such as Duracell and Energizer, focused on because they believed that customers want a convenient and portable source. It was estimated that 75% of all alkaline battery was a result of impulse purchases. The two big competitors are Energizer and Rayovac. Energizer was the world leader in the manufacturing of dry cell batteries, selling more than six billion batteries a year. It currently produced two general brands: Energizer and Eveready. As for Rayovac, it was originally founded in 1903 as the French Battery Company in Madison, Wisconsin. Royovac’s main brand of disposable alkaline battery was Rayovac Maximum, which was very similar to Energizer and Duracell but 15 cent cheaper. By 1990, electronic manufacturers began to enter the battery market. Sony was the largest supplier of secondary batteries. Kodak promoted their batteries through the use of their cameras. Internal analysis:
Gillette was founded in 1901 in Boston and became one of the most recognizable name brands from the U.S in 2000. It has introduced new razor shaving systems during the last 30 years. Between 1977 and 1988, new disposable razors were introduced with an updated version of the razor. Gillette kept coming up with new and diversified products in its first 100 years. By 2001, it had four...
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