Rayovac Corporation: International Growth and Diversification through Acquisition Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Rayovac Corporation: International Growth and Diversification through Acquisition Case Solution

SWOT Analysis of the Company

In order to analyze the internal as well as the external strengths and weaknesses of the company, and in order to come up with their overall global strategy, a SWOT Analysis is performed.

Strengths

From the historical financial results of the company, it can be seen that the company is constantly moving towards growth with the help of its significant diversification strategy and the attempt to increase globalization using acquisition of different companies in entirely different regions. It can be seen that the company, with the help of their significant efforts, has created astrong brand image in the industry which has resulted in strong customer loyalty. The other major strength of the company is related with the marketing efforts adopted by the company with which number of positive results was achieved. The company is considered as the strong market leader in Germany as well as Austria with the help of these marketing efforts in the presence of significant competitive market.

Weaknesses

It can be seen that despite the significant efforts of the management and its growth perspectives, there are some weaknesses of the company as well. The company in an effort to diversify its products and reaching new global position has lost its primary business of Battery Company which is evident from the difference of results of pre-acquisition and post-acquisition. The percentage of sales from its battery division was 65 before acquisitions whereas due to diversification, the company significantly decreased its overall sales percentage from its core business to just 35%. The other weakness of the company is related to the environmental issues which the company could face because it is dealing in personal care business which could be damaged by the environmental hazards.

Opportunities

It can be seen that although the company, with the help of significant acquisitions, achieved market leader position in the industry. However, there are further significant opportunities of acquisitions in the new market with the similar products which could yield much positive results. It can be seen that the company also has the opportunity to expand or diversify in the unrelated products whose market share is increasing with the help of its existing potential. With the help of contracts with the large retailers in the industry, the company can easily enhance its sales growth with the reduction of annual cost.

Threats

The first and the foremost threat which the consolidated company faces is related to the intense competition in the market due to the presence of Duracell, Panasonic as well as Energizer which are creating issues because of the marketing as well as management efforts taken by these companies which could harm the sales revenues of the current company. Moreover, it can be seen that the major sales revenues of the company are taken from Latin America and in the circumstances of economic downturn which could also hurt the purchasing power of the individuals as well as other businesses, the company could suffer a lot.

Compare Rayovac in 1996 with Rayovac (Spectrum Brands) in 2005. What are the differences? (two or three differences)

In order to compare Rayovac in 1996 and Rayovac (Spectrum Brands) in 2005, the first major difference seen is regarding the significant amount of diversification which the company achieved through several acquisitions made around the world which also provided significant positive results. This diversification is termed as Diworsification because of the fact that the company lost their core business focus and switch to personal care as well as gardening products......................

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