Gillette’s Energy Drain (A): The Acquisition of Duracell MACK Consulting Michelle Neill, Ali Nassem, Cindy Arsenault, Krystal Mayne, Charlene Ford, Laura Robertson March 20, 2008 Bus 491 - Gary Evans PROBLEM STATEMENTS – STRATEGIC ISSUES The Duracell Division of Gillette has lost market share and failed to move forward in the last four years, which may be the result of a lack of strategic vision and/or mandate from Gillette’s Board of Directors. It is our opinion that perhaps too much emphasis or “hype” was placed on the acquisitions potential and not enough effort has been re-focused on maintaining the Duracell Division itself. Gillette, and certainly Duracell, needs a revamped strategy to increase its market share and …show more content…
Superstore and Wal-mart). Knowing how Wal-mart works with regard to its suppliers (i.e. buying in bulk, huge consumer market share, as well as the inventory technology interface with suppliers, etc.), this shows a huge relationship between Energizer and Wal-mart in allowing such displays to be erected. PORTER’S FIVE FORCES We chose the Porter’s Five Forces as a valuable analysis tool as it helped us to identify the potential threats from new entrants as well as the power that the buyers have over the sales in this industry. It also helped us to identify the amount of competitiveness within the industry and how easily other products could be substituted for our products. From this analysis (see Appendix III), we identified an issue regarding pricing strategy that we feel is important to address in our proposed solution. The key ingredient to success appears to be that battery companies must compete on price, rather than brand. This is exemplified by Duracell and Energizer’s plateau/loss of market share and Rayovac’s gain. Since there is little differentiation among batteries, other than a company’s different types (which is only competing against itself), they can easily be replaced by other brands that may appear more attractive to buyers. Consumers have a tendency to buy batteries based on price, rather than brand, since their perspective is “a battery is a battery” and they are basically all the same. Since the threat of entry of new suppliers is high
The following analysis of Porter’s 5 Forces Model will help in determining the threats that my be present now or in the future and help determine opportunities and decisions regarding the marketing plan.
Porter’s five forces model is a tool that simple but powerful that help business people understand the relative attractiveness of an industry and the industry’s competitive pressures. Porter alluded to these forces as the micro environment, to balance it with the more broad term macro environment. They comprise of those strengths near an organization that influence its capacity to serve its clients and make a benefit. An adjustment in any of the forces ordinarily require a business unit to re-evaluate the market place given the general change in industry information. The general business engaging quality does not mean that each firm in the business will give back the same benefit. Buyer powers, supplier power, threat of substitute product and
Porter's Five Forces is a simple but powerful tool that consist of 5 different forces to understand the competitiveness of your business environment, and for identifying your strategy's potential profitability. The five forces are degree of rivalry, threat of entry, threat of substitutions, buyer power, and supplier power. Each force is helpful in their own way to get to know your rivals a lot better and get to know what can happen in your market.
Colgate-Palmolive Company (CP) launched a new toothbrush, Colgate Precision, to the market. But having developed for three years, CP was fiercely competing with other companies in the market. In order to have the power to fight in the highly competitive market with substantial product activity, Colgate-Palmolive Co. was in a problem of considering the how to position its new product--Precision, and to define the market strategy in terms of positioning, branding, and communication strategy. It provided some options with details to the reader, hence, for such purpose, this case would be a decision case, finding the optimum to segment the new product to the target and how it should be marketed.
At its core, Porter’s 5 forces describes a firms overall ability to compete in a market. We discuss our analysis of the 5 forces and how they affect SAS Corporation and its stakeholders. Please examine Figure 1.1 to view a diagram that depicts the 5 forces.
The Duracell version was created in 1973 to showcase their batteries' ability to hold a charge significantly longer than other, inferior battery brands. The ads featured a group of pink toy bunnies all playing the drums simultaneously. Each would quit, one by one, as their batteries died. But a specific bunny, powered by Duracell, would keep going, on and on.
The analysis of the Porters five forces are very important to business entities. Based on the analysis a business can evaluate their current position and positions that they plan to progress towards as it relates to the industry they are operating in.
Porter’s five forces analysis is a tool is useful for us to analyse the threat of competition in an industry. Porter believed that the industries were influenced by five forces; competitive rivalry, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and the threat of substitutes. Analysing these areas can allow you to see attractiveness of the market and find a competitive advantage.
The Porter Five forces analysis helps the marketer to contrast a competitive environment. Porter’s five forces model is comprised of following five completive forces:
The Porter`s five forces are threats of new entrants, the bargaining power of buyers ,product substitution and intensity of rival of rival among competitors .These forces measure the competitiveness of the market and also helps the company to identify strategies to use to penetrate such and gain market share.
Porter’s five forces analysis not only provides the ideas to create the strategic plan but also assesses the attractiveness of an industry.
Porter’s Five Forces model is used to evaluate the degree of rivalry between competitors in a given industry through assessing the four forces that lead to this outcome. These forces are the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, and the threat of substitute products.
This business plan covers a product for the company Wi-Battery Life. The main product of the company is Wi-Battery Life Increase. This product was influenced by the increasing use of wireless technology. Generally, the root “Wi” refers to “no physical contact.” Technologically, the use of wireless technology is being adopted to replace the use of manual wires. With the increasing use of technology, wireless technology is becoming more useful than the use of physical wires, which tend to consume more wires. Globally, there is an increase in the use of portable devices like tabs, phones, laptops among other devices. Even though these devices have brought increase productivity in the business world, education and other fields, there use is
Porter’s 5 Forces analysis is a commonly used business theory that identifies the 5 competitive forces of an industry. By identifying and analysing these forces you can determine an industries weaknesses and strengths. Porter recognised the 5 forces in most business markets to be internal rivalry, entry, substitutes and compliments, supplier power and buyer power.
Gillette is successful because the focus on the one thing they know and that is men. They understand what men need for their grooming needs, and their products are sold all over the world (P Kotler, 2017). Gillette’s popularity has worked because of several factors, including high-quality innovation, consumer research, and mass communications. With their research, and the fact they have kept improving their product, Gillette has made many breakthrough product innovations, which should allow their success to keep increasing. In 1971, there was the Trac II, the first twin-blade shaving system, then the Atra in 1977 there was a razor with a pivoting head, and then in 1989 they developed the Sensor the first razor with spring-mounted twin blades dubbed (P Kotler, 2017). In 1998, Gillette introduced the Mach3 it was the first triple-blade system, surpassed only by the 2006 launch of the six-blade Fusion, promoted as “the best shave on the planet.” (P Kotler, 2017) It is possible that Gillette can become as successful with Women as Men due to the fact Procter & Gamble acquired Gillette in 2005 and Procter & Gamble are experts at marketing to women, due to the fact most of their lines such as dishwashing liquid, laundry detergent, and hygiene products are aim for their woman clients.