Spectrum Brands Strategy for Diversification: Success of Failure?

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Abstract
Assessing the strategies of CEO David Jones to globalize Rayovac’s battery and flashlight business during 1999 to 2004 will determine if globalizing was strategically sound. An assessment on the attractiveness of each industry Spectrum diversified into will determine which business units have attractive degrees of competitive strength in their respective industries, and whether a strategy of related or unrelated diversification was pursued will determine which fits exists in both strategy and resources available within sister business units. An assessment of the company’s financial results will be based on data from the case and other sources. Recommendations from the assessments performed will be given on what it will take to
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This technology gave more power for hearing aids used by the severely hearing impaired (p. C292).
In 2002, Rayovac acquired the consumer battery business of the German based company Varta AG (VARTA) for $258 million. The leading European (EU) maker of general batteries was VARTA in 2001 with revenues of $390 million; which 86 percent sales were from EU, and having operations in Latin America.
Globalizing Spectrum Brands
Acquisition Timeline Continued
The redundant plants were closed, and the Latin American plants were combined to generate a cost savings of $30 to $40 million. This strategy probably did make strategic sense; the purchase price was reasonable, the sales were higher than the purchase price, and the combined savings generated were fairly sound. This strategic move also solidified Rayovac’s market leadership in Latin America (sans Brazil), making Rayovac the second leading battery producer in Europe, and gave a market lead in consumer batteries in Austria and Germany (p. C292).
Rayovac also introduced a revolutionary technology for recharging batteries in fifteen minutes during 2002. The technology is known as the I-C3 technology that can be utilized in future technologies and other products. The concept of the I-C3 recharger can be utilized in other battery product lines, and the electric shaving industry (http://www.spectrumbrands.com/corpinfo/).
In 2003, Rayovac improved the fifteen minute

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