Crafting and Executing Diversification Strategy of Spectrum Brand
Different companies have different strategies that they embark on as their game plan to grow with time. A sound strategy should enable the company plan out how they can achieve customer satisfaction, conduct operations while competing successfully and all in all achieve their set out objectives with time to grow their business. A good manager should be able to come up with a strategy that enables the company to grow and keep the company in the market (Pisnar 2008).
David Jones outlined a strategy plan which was about Spectrum Brands globalizing and diversifying in order for the company to stay in the map. Jones diversified the battery and flashlight manufacturing industry to indulge in more products. These included venturing into personal grooming line products home appliance, lawn and garden utilities and products, insect repellants and pet care products. The company also diversified to having companies and expanding their market to US, Europe, North and Latin America.
The strategy the company picked has a couple of factors working for them. These are factors such as creation of market opportunities in new boundaries and new fields. Venturing into different products and globalizing enabled them to meet different customer needs. The challenges that spectrum brand faced were market competitions arising from different other companies in the market. The products that the company did venture in as a diversification strategy, portable lighting products, electric personal care products and household insect control also did not make sales or add more profits to the company.
The diversification strategy that Spectrum brands embarked on was indeed a good strategy. It incurred additional costs due to marketing employed for different products but employed a business structure that was bound to eliminate double functions therefore cutting salary costs and in turn operating efficiently and profitably.
Pisnar M. (2008). Strategic Management: Management Policy and System Analysis. HYPERLINK “http://homepages.bw.edu/~mpisnar/2008%20Text.pdf” http://homepages.bw.edu/~mpisnar/2008%20Text.pdf