The Rechargeable Battery Opportunity
Done By: Mariam El Naamani
Submitted To: Dr. Marwan Wehbe
Due To: 26/4/2013
I. Opportunity Identification:
After analyzing the situation of Rayovac Corporation and with the management system of the company, the firm has bigger opportunities to enter and lead the North American market in terms of providing battery and rechargeable batteries to its residents, commercial and industrial clients or even have an opportunity to be the number one battery company in the whole region since competitors don’t exist in this market due to their fear of cannibalizing sales of their existing products. Therefore, Rayovac could use this opportunity to increase its presence and brand name recognition by entering the “back door” instead of competing head-to-head against the well-established non-rechargeable products of the market leaders. With the continuous innovation of the company, it can gain loyalty from its customers to make them more competitive in the marketplace. The continuous initiatives of the company in diversification of its products also open new opportunities to make the business become stronger to outgrow all its rival companies. In addition, the market leaders didn’t have core competencies in rechargeable battery manufacturing, where Energizer offered a full line or rechargeable batteries and chargers but did a very humble advertising campaign for it, while Duracell offered rechargeable batteries and chargers in specific, yet not all, sizes. So, what Rayovac could do is to benefit from this opportunity by manufacturing various and diversified battery lines to satisfy all people in their target market strategy, where at the same time they’ll gain reputation, recognition, and the lead from the previous big two companies. In addition and since Rayovac positioned itself as the “value brand” compared to its competitors which were “premium brands”, the company has this opportunity to gain market share since the positioning strategy is successful in their customers’ minds through gaining new prospects because of the price reduction strategy they followed in which they achieve the “excellent quality with reasonable prices” strategy. By this the company will be targeting potential customers who care about the good quality and at the same time they care about the prices. Another opportunity the company can take advantage of is to take the same approach Duracell took in the past where they got ownby the famous Procter & Gamble (P&G) marketing firm which made Duracell get more recognition and trust from customers since the owner is P&G. so, what Rayovac could do is to buy their biggest percentage of shares to a big marketing international company to be under its name so people can trust and recognize Rayovac more where the firm will gain more profit besides the percentage that P&G will take, but they will succeed and gain profit more than if they keep themselves alone. By this, the company can enter the North American, especially the Canadian market, and the Chinese & Japanese markets under the name of Rayovac but under the umbrella of P&G where there will be no risk since P&G is in 200 countries worldwide.
II. Organization Matching (SWOT Analysis):
1. Strengths: One of the company’s strength is that its being a very profitable company in both domestic and international branches. In addition, Rayovac is a global brand established upon a reputation of quality products and services with branches in different regions. Besides, the key strength of the company include their unique management style and technological infrastructure. The strategies used by Rayovac include intensive strategy, which aims to competently position and promote their battery products in North America and other parts of the region. Another important yet crucial strength of the firm is buying Remington Products...