Spectrum Brands Diversification Case Study

1799 words 8 pages
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…

(See attachment A). On a different note checking the four acquisitions on their basis of competitiveness shows a different picture of the Rayovac business as with all the four newly acquired companies’ only two could stand competition as seen in the analysis of the degrees of competitiveness calculations (see attachment A). Remington Products Company and Jungle Labs were the only companies with an above average competitiveness weighted score of 8.25 and 5.25 respectively compared to the others. United Industries Corporation and Tetra Holdings that had 2.35 and 3.20 weighted scores respectively. (See attachment A)

Diversification in the spectrum company can only be evaluated on the basis of competitiveness of business fits across the four different businesses the company had diversified into, since Spectrum company as can be clearly noted had pursued an unrelated diversification strategy to its original business but to related diversified industries. Starting with the diversification into Remington Products Company and evaluating the opportunities of combining the performance of various activities that Remington Products Company was carrying out prior to acquisition one notes that spectrum


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