Instilled in our DNA, growing is a part of basic human life. We grow from small cells, into CEOs of major firms varying in different industries. When assessing an organization most people compare the growth of the company. Growth can happen in multiple ways whether its horizontal (existing products going into new markets), Vertical (obtaining assets up and down the supply chain), or Diversification (going into a different industry). In the era that we live in today most companies choose to follow the path of diversification. Companies such as Disney moved from animated movies to theme parks and vacation properties and Cannon went from camera-making company to producing office equipment. One company that has been slowing implementing itself into different industries is Spectrum Brands. Once formerly …show more content…
Although they have been able to obtain a high portion of the global market share and are noted to be in the top ranks in these industries, the industries have potential risk. When analyzing whether an industry is attractive , you have to use Porters five forces analysis which consist of ; The threat of new entrants, rivalry among existing firms, threats of substitute products, bargaining powers of buyers and bargaining powers of suppliers. For six out of the seven industries Spectrum Brands is a part of they are highlighted as the brand that can be compared at value with the leader in the industry with the lower price. The products that spectrum are selling is no different from those in the industry. Just about anyone can come into each of the industries with a product compared to spectrum or even the leader of the industry and offer the product at a lower price than Spectrum. The industries do not have that much product differentiation to set apart the organizations in the industries. It is pretty simple for anyone to develop a product that offers the same features to enter the