Essay about Church and Dwight

Words: 3635
Pages: 15

Church & Dwight:
Time to Rethink the Portfolio

A case report prepared for

MG 495 Business Policy

Spring 1 2013

3 February 2013



A. Executive Summary

1. Summary statement of the problem: Church & Dwight, more commonly known by its brand name “Arm & Hammer,” has held a commanding lead in the sodium bicarbonate product market for over 160 years with virtually 99 percent of all consumer products in households within the United States. However, in order to promote growth and diversity while maintaining a steady profitability rate of three - five percent per year, the company has expanded uses of sodium bicarbonate products so that it is no
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As the company gains a stronger market share in the international consumer products, the growth and profitability standard will continue well into the future. However, Church & Dwight also recognize they must remain vigilant to quickly and adequately deal with Porter's Five Forces: Bargaining power of suppliers; Threat of new entrants; Threat of substitute products or services; Bargaining power of buyers (customers); and Rivalry among existing firms (competitors) (Wheelen & Hunger). When considering Bargaining Power of Suppliers, the force rating could be considered Medium as management must be constantly aware of any potential market shocks or trends. If an affiliate retailer is affected by unforeseen supply chain issues, like increased fuel prices, then those costs throughout the company may be affected to remain competitive. In addition, Church & Dwight are well aware of the economic situations that may affect their trade customers who may reduce distribution of products in which sales may decline, or adversely affect the financial performance of the company (Craigie). There was never historically a threat of new entrants into the sodium bicarbonate market prior to 1970. However, since the company has developed new product offerings and other established consumer brands, they now face the same competition threats of mature and domestic and international markets