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Gillette’s Energy Drain (a): the Acquisition of Duracell

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Gillette’s Energy Drain (a): the Acquisition of Duracell
Gillette’s Energy Drain (A): The Acquisition of Duracell

MACK Consulting
Michelle Neill, Ali Nassem, Cindy Arsenault, Krystal Mayne, Charlene Ford, Laura Robertson
March 20, 2008
Bus 491 - Gary Evans PROBLEM STATEMENTS – STRATEGIC ISSUES
The Duracell Division of Gillette has lost market share and failed to move forward in the last four years, which may be the result of a lack of strategic vision and/or mandate from Gillette’s Board of Directors. It is our opinion that perhaps too much emphasis or “hype” was placed on the acquisitions potential and not enough effort has been re-focused on maintaining the Duracell Division itself.
Gillette, and certainly Duracell, needs a revamped strategy to increase its market share and minimize its marketing and operating costs.
IT IS MY OPINION THAT HERE THE 5 POINTS SHOULD BE MOVED AS OUR STRATEGIC ISSUES. Also, the last point on page 4 regarding Energizer and Walmarts relationship, I believe, should also be included as a strategic issue that should be touched on in the final analysis, because in my opinion, this is a big issue. Duracell needs to improve its supplier/retail relationship!

So, Duracell needs to improve the relationship with retailers to improve its sales, should Duracell go back to the “old” ways or acquire a competitor……………….what does everyone else think

Also, the changes that I made I did not mark so everyone could read it over and see if it flows in stead of putting more enphasious on my changes alone…..

Krystal

Let me know what you guys think.
INTRODUCTION/ANALYSIS OF THE BATTERY INDUSTRY

The competitive landscape changed considerably after Gillette’s acquisition of Duracell in 1996. Prior to the purchase, Duracell’s competition was mainly from Energizer, who was the worldwide leader in dry cell batteries. The original Energizer held a market share of 36.6% in 1997, dropping to below 30% by the year 2000 with their operating revenues dropping as well.

Competition was also

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