![]() ![]() The project did not do as well as expected. The company launched a campaign to use renewable batteries in 1995 with Michael Jordan as the brand ambassador. In 1990, the company shifted its focus to Heavy Duty and Industrial products. ![]() However, it did not manage to unseat the two market leaders Duracell and Energizer. The company acquired several patents in this department. In the years 1930-1988, Rayovac concentrated on manufacturing batteries for consumer products such as radios, flashlights and computer clocks. Currently, Rayovac is the market leader in wearable hearing aids. This began the journey to dominate the hearing aid market. In 1933, the company patented a hearing aid. The name was changed to Rayovac in the 1930s. Initially, it was called The French battery Company. Learn More Situational Analysis Rayovac History If they make the investment, will the company grow to be the market leader in this product line? Will the market embrace the product? Will the company have enough cash to execute the strategy? Which marketing strategies should be adopted if the plan is implemented? How are competitors likely to respond? Will this strategy grow the overall business? Rayovac needs answers to several questions before making this strategic decision. Mr Falconi needs to decide whether to seek other means of creating sustainable competitive advantage in the disposable batteries market or to change the strategy to focus on rechargeable batteries. ![]() It could be an opportunity for market growth or a fad, which may pass. This is both an opportunity and a threat. The market is yet to adopt the concept of rechargeable batteries fully. Currently, the company is the third largest battery maker, after Duracell and Energizer. This would be a shift from the alkaline disposable batteries. Rayovac Corporation is contemplating expanding its rechargeable batteries line. Rather, it should focus on market penetration and market growth. According to these findings, it is not worthwhile for the company to implement the strategy. The Ansoff’s growth matrix has also been used to determine the strategic options available to Rayovac. This is evident in the guerrilla tactics employed in their advertisement campaigns.Ī financial analysis was conducted to determine whether the rechargeable batteries option is viable. There is stiff competition among the top three industry players Duracell, Energizer and Rayovac. Since the market is composed mainly of individual buyers, the overall bargaining power of buyers is relatively low. The current industry players already own all the patents related to manufacture. The threat of new entrants in this industry is insignificant. There are individual (family) consumers and manufacturing customers. Battery consumers are divided into two groups based on size of purchase. The company intends to maximize shareholder value through growth. Like all profit-making organizations, Rayovac is interested in maximizing its return on investment. ![]()
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