Rayovac Corporation Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Rayovac Corporation Case Study Solution

Microlite acquisition

Horizontal integration

Microlite SA, the biggest manufacturer of consumer batteries in Brazil and owns the Rayovac brand name in Brazil. It soon saw a 50% market share in Latin America's biggest consumer market. Rayovac replaced Microlite's administration team with the Rayovac group who decreased value, increased efficiency, improved product integration, and increased prices by 16%.

As the Microlite business also did not perform well and lost money. Lenders examine high risk and, as a result, are paying very high-interest rates. So this would be a challenge for the firm to overcome.

TetraHoldings

UnitedIndustries

Horizontal Integration

Different planning for any firm would be beneficial because they go into another industrial area to help out or get anaggressive edge with other items. With the acquisition of the type of consumer and the continued growth, Rayovac was able to reach a different of new suppliers who were not able to reach

Rayovac increased consumer recognition and ultimately helped brands gain profits that made them more competitive in their industry. Rayovac has been able to present new procedures that have improved all manufacturing functions.

1: One of the major challenges will always be the economic decline that is uncertain.

2: And the other biggest challenge would be to continue to hold its position and gain a competitive advantage over its competitors.

Question 4. Considering Rayovac’s products and markets, what are your evaluations of its acquisitions and global expansion strategies? Please use three acquisition examples to explain your answers. You may also consider the “limits of diversification”, if applicable.

Rayovac Corp is a highly profitable firm, both in domestic and international branches. Furthermore, Rayovac is a global item based on the reliability of high-quality items and branch services in numerous regions. Furthermore, the firm’s core strengths include its distinctive administration style and advanced basic facilities. The policies used by the firm included a strong foundation, which directs to keep and market their battery items in America and other characters of the divisions as well. To increase the funding completion; the firm has realized that it is using all of its assets in a way that will help it in improving its performance.

Rayovac has used (M&A) planning to expand its business overseas. Working included the acquisition of the European self-made battery “VARTA” in 2002, the 85% acquisition of the share in the Chinese battery producing-firm to decrease the manufacturing costs and the acquisition of Microlite SA, which is the producerof Brazilian battery, to increase the company’s operation sin South America. In an aim to mix the combined mode in 2003, Rayovac acquired Remington Products Company, LLC10. So overall I believe that the company has used its strategies quite effectively.

Limits of Diversification

Diversification-includes creating and making new items. These items are then sold in new markets. However this is a very bad planning. However, it offers a great chances for expansion as well. Diversification's also a very valuable expansion strategy to use. As it requires a great deal of financing as well in all research and development (R&D) and advertising.

The Rayovac Corporation also needs to make market studies on the offered new market to build better customer needs. After that, it should develop items to meet these needs. The advertising people should make sure that the market is aware of the presence of the item.

Solar panels are a productive flexible technique. There is a great need for solar energy in the West. On the other hand, in Africa and Asia as well, there is a greater need for an inexpensive energy source than electricity. Solar energy is the solution of the problems of expensive electricity. Rayovac can use the knowledge it has acquired so far to make batteries that can charge the cars. With the removal of crude oil, the world is ready for new methods to resolve the issue of fuel crisis.

Recommendations

I would recommend that Rayovac go after the two expansion strategies. The first is market intelligence and the second market advancement. Market intelligence will allow the firm to maintain its current position in the market. Market advancement on the other hand will help increase revenue from these new markets. Market intelligence is a low cost and low-risk plan, this is because Rayovac will be facing a broad market. Market advancement is also less expensive because the items to be sold already exist. Having succeeded in the current market, they will probably be successful in new markets with proper advertising.

Rayovac should not accept a re-loadable battery strategy. This strategy has low possibility but can have high starting costs. There is no guarantee that there will be market expansion at this stage as well. So they need to use these advertising and growth strategies with proper research about the markets and set the limits for themselves so that they can easily operate all the markets.

Conclusion

All in all, it can be said that to capture the North American market, Rayovac must be able to look at a new advertising and administration strategy to ensure an-aggressive position and long-term profit in the market. Furthermore,it can also be concluded that Rayovac Corp needs a planned market entry strategy to ensure its success in the North American market..............................

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