Global Household Brands Case Essay

1654 Words Nov 12th, 2008 7 Pages
MEMO
To: Mr. Stone, CEO, Global Household Brands
From:, Analyst, BMF Consulting Firm
Executive Summary BMF consulting has evaluated the structure of Global Household Brands, in order to give recommendations for possible growth and stability for the future of the company. In this analysis, I have gathered information regarding financial statements, internal and external factors in Global Household Brands competitive structure, and strategic priorities in order for the company to grow in the household product industry. The analysis of the internal factors shows that Global Household Products have strong distribution throughout the industry and have a core competency for developing quality products. This analysis allows for GHB to
…show more content…
McCoy, and his awful strategy, they have brought in the man who was responsible for recommending the purchase of Block, Mr. Stone. In order for Mr. Stone to have a good idea about what direction he wants to take the company, we must first analyze Global Household Brands current situation.
Industry Analysis Global Household Brands is in a market in which it is difficult for a new company to enter. With the difficulty to gain access to distribution channels and difficulty to develop a strong brand consumer base, the market the GHB is in is strong. Major threats to Global Household Brands products are the entering of larger companies such as Clorox, Arm and Hammer, and S.C. Johnson. These companies are much bigger than GHB, and can rival their products. GHB doesn’t want to rival these larger companies, because these companies have the potential to market more and steal market share, like they did for 1995-1999. Since GHB and the larger competitors are mature, it has become a consolidated industry, as GHB and its competitors are struggling to differentiate their products from one another. Consolidated industries tend to depend heavily on price and quality, which could lead to lower profit margins. GHB has a reputation of producing high quality products, but that is beginning to be tarnished because of the poor job by the operations manager. Accompanied with the purchase of Block, GHB became highly