Rayovac Case Analysis Essay

1352 WordsMar 21, 20126 Pages
CASE ANALYSIS RAYOVAC CORPORATION Introduction: As the use of household batteries is on the rise due to increased development of high-drain devices such as cameras, Bob Falconi, vice-president of sales and marketing for Spectrum Brands Canada Inc, is considering whether or not to pursue the not yet well developed market of rechargeable batteries in order to increase its presence and brand name recognition in this very highly competitive market of disposable batteries dominated by Duracell and Energizer. The major competitors of Rayovac- a division of Spectrum Brands Canada Inc, are not focusing on this category for fear that it would cannibalize their sales of disposable batteries, as this can be a good opportunity for Rayovac,…show more content…
For every rechargeable battery sold, companies would make $2 but lose sales of 200-500 units that generated $0.50 each. Rayovac Rechargeable batteries: -Introduced in 1993 but only had moderate success, they held 20% market share in this category -Outside of North America Rayovac was the leader in rechargeable batteries category -Europe adopted this technology because they are more environmentally concerned and do not like to throw things away, it is in their culture. -Americans have been brought up with disposable items and so they are not used to this way of thinking. -Canadians are similar in thinking with the Europeans but have mirrored the Americans for years and so they would slowly adopt this technology. -Nimh technology introduced which improved the performance of rechargeable batteries. Strengths: -3rd largest manufacturer and marketer of batteries. - Dedicated to growth -Bob Falconi, vice-president, has much experience and has even worked for the competition. -Diverse company Weaknesses: -Rayovac does not
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