Gillette Energy Drain : The Acquisition Of Duracell
Industry: Portable power industry in the US
The acquisition of Duracell was seen as many as a smart move. Analyst, shareholders, executives, had high expectations with this merger. Unfortunately, this acquisition created several problems for Gillette since their main goal of profit maximization was not being accomplished.
Main issues:
• Should Gillette divest Duracell?
• Is Gillette using the appropriate strategies to deal with the big and small competitors?
• Stock prices are decreasing considerably
External Analysis
Industry Structure
• Dry cell batteries industry generated US$ 2.6 Billion in US domestic sales in 2000.
• 75% of all alkaline battery sales were impulsive purchasing.
• AA size batteries accounted for almost 50% of all sales.
• The industry was highly competitive, and the three big players were constantly developing new products.
• There were three main distribution channels for batteries: discounters, 52.5% of sales; drug......
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Approximate Word Count: 1731
Approximate Pages: 7 (250 words per double-spaced page)
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