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Spectrum Brands Diversification Case Study

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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 Rayovac sales in the region of $20 million was a strategic move that spurred sales in Latin America region greatly. Further, acquisition of Varta AG a leading manufacture of general batteries and a competitor of Rayovac within the Latin American market was also another strategic move as Rayovac was able to reduce operational cost by $30-$40 millions, solidifying Rayovac market lead in the region and made Rayovac the second leading battery producer in Europe as well as the leading producer and distributor of batteries in Austria and Germany. In Asian markets acquisition of 85% of Ningbo Baowang battery company with a modern manufacturing facility of alkaline and heavy duty batteries at very low costs was a good strategic move as this made it possible for the company to produce at low costs, batteries for a global market as well as giving Rayovac an edge in penetrating China battery market which was growing rapidly at the time. With acquisition of Microlite battery manufacturing company in Brazil with a market share of 49% of alkaline and Zink batteries, manufactured in two facilities gave Rayovac a leading position in the

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