Competition and Strategy

Please write a 1500-word report to answer the following questions ONLY (you do not need an introduction or conclusion; please focus on synthesizing the case information based on your known theories and frameworks to respond to the following): Among the Porter’s generic strategies, which business strategy is the battery industry more conducive to (based on case the facts; please substantiate your response to all parts of this question) and which generic business strategies have Duracell, Energizer, & Rayovac adopted? What business strategies is Gillette following in its other businesses (other than Duracell)? Why do you think Gillette was not as successful in its battery business (as it has been elsewhere) and what could have been done differently (since the acquisition of Duracell in 1996) to leave a more positive impact on company and industry profitability?

1. Among the Porter’s generic strategies, which business strategy is the battery industry more conducive to and which generic business strategies have Duracell, Energizer, & Rayovac adopted?

Duracell

They currently hold about 50 percent of the US battery market and are the world's leading manufacture and marketer of high-performance alkaline batteries

• Energizer is Duracell's toughest competitor and has 9,963 employees, sales close to $1.8 billion and a net income that has grown 3.2% over the last five years
• The Rayovac Corporation is the third leading provider of alkaline batteries and has 2,480 employees, sales at $573 million but has a net income growth of 36.4% over the past three years
• Other competitors include Kodak, Maxell, Wal-Mart's EvrActiv line, and rechargeable batteries. Generic competitors include plug-in electronic and solar powered devices

Duracell possesses resources that are relatively valuable, but competitors also have access to similar resources thus not making them very rare. Duracell's Ultra as well as most other products show characteristics that are somewhat imitable and substitutable. It is only a matter of time that a competitor will come out with something to match it. But, Duracell has the largest market share and Duracell Ultra can be used as a vehicle to potentially dominate the market if Duracell uses the right strategy.

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1. What business strategies is Gillette following in its other businesses (other than Duracell)?

 Gillette has remained the world leader in shaving products for the last century following its inception in 1901. In 2000, Gillette made more than $9.2 billion in revenues and had the top two shaving systems in the United States by 2001. Gillette's earnings were experiencing a growth rate of 17% per annum prior to the acquisition of Duracell. During its first 100 years, Gillette tapped into many different market segments and by 2001, it comprised of 4 main business segments: personal-grooming products, small appliances, oral care products, and portable power.