Newell Case

Strengths

Spectrum’s strength is in its various brand names, product innovation and research and development, its global presence, distribution network and low cost manufacturing facilities in Latin America and China.

Weaknesses

Spectrum’s weak financial performance is a major concern for the very existence of the company. Budget cuts in research and development, marketing, advertisement and promotions are eroding it sales. The low cost strategy is not working in the battery industry. Most of the battery business is depended on three big box retailer especially Wal-Mart.

Opportunities

By filing for bankruptcy and negotiating deals with the creditors there is a great opportunity for restructuring and cutting down the debt currently exists. By restructuring Spectrum can get back to its core competencies in battery manufacturing, personal care products and pet food business.

Threats

The major threats to the business are the declining economy, rival marketing, promotional tactics and debt. The inefficiency of the management to generate income is hurting the bottom line. The core competency Battery manufacturing is threatened by major rivals such as Duracell and Energizer and by local manufactures and OEMs. In the field of rechargeable batteries market a number of technological advances have happened in the past few years and other market leaders are promoting their products, with few dollars in marketing and R&D it will be difficult for Spectrum to compete in this market in the future.

The home and pest defense is threatened by product innovations by SC Johnson, P & G etc. The pet food and related product market is threatened by majors. The niche market of hearing aid battery manufacturing is threatened not only by major multinationals like P & G but