Case Name :      Gillette’s Energy Drain (A): The Acquisition of Duracell

Authors :           Frank C. Schultz, Michael T. McCune

Source :             Ivey Publishing

Case ID :            905M26

Discipline :        Strategy

Case Length :    18 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

In 1996, Gillette acquired Duracell for $7.3 billion in stock. The purchase was met with optimism not only by Gillette’s senior management and its highly visible director, Warren Buffet, but also Wall Street analysts. Highlights the numerous challenges that Gillette has encountered since the acquisition. Despite the initial enthusiasm, Duracell has proven to be a drain on Gillette’s earnings and has cost Michael Hawley, James Kilt’s predecessor as CEO, his job after only 18 months in the position–in large part for his inability to turn around the financial hemorrhaging at the Duracell division. The key strategy questions revolve around what can be done to turn around the battery business to help it achieve the potential for Gillette that everyone had assumed it possessed.