Spectrum Brands Diversification Case Study Essay

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After Rayovac company’s successful long term course of rejuvenating its battery business for the purpose of spurring sales growth locally, a newly branded Rayovac brand supported by broad battery lineup via technological innovations, improved packaging, expanded distribution network, refined supply and purchase chain, slash in production cost and an increased plant capacity created Rayovac into a result oriented enterprise.(attachment C) Rayovac Company CEO, Jones with new entrepreneurial culture insights into the company performance, embanked into globalization of the battery business in 1999. The acquisitions of ROV limited the largest battery distributor in Latin America with approximated sales of $100 millions compared to the…show more content…
Rayovac emerged as the leading manufacturer and distributor of hearing aid batteries with an estimated market share of 60% globally. Rayovac sales rose from $427 millions to over $1 billion within that span of period to 2004. Globally, retailers had seen the rise of Rayovac Company and had started stocking the company’s batteries where, by 2005, 19 of worlds 20 largest retail outlets were stocking Rayovac batteries in their more than a million stores world wide. The company by this time through new acquisitions, research and development had a very wide range of products offer than all its competitors combined. All this globalization strategies were very successful and improved the targeted sales volumes and reduction of cost in production and distribution lines with Rayovac attaining a global outlook that it had intended to achieve within a span of less than 5 years. Later Rayovac Company’s (spectrum) diversification into other four industries could have been lead by the attractiveness these companies as seen in the attachments (attachment A), the first acquisitions of Remington Products Company and United Industries Corporation had very good scores on the basis of attractiveness weighted score at 7.70 and 7.1 respectively which analyst would say was way above the averages. The other two acquisitions which had an almost related

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