SMMCG7[TP3]_Corporate Growth
Globalisation
Current situation of RB
Headquarter located in England
Factory has been in 60 different countries worldwide
Products can be ordered online and offline
Has helped RB create more value while providing customers with product
RB also are well known for their integrated production line
How to achieve globalisation
RB has been acquiring lots of companies around the world
During 1991, RB has bought down Lysol and started to enter the Eastern Europe market
During 1996, RB starts to enter the Middle Eastern countries.
On 1999, Reckitt and Benckiser has merged together and marches into the Germany market.
2017, RB bought down Mead Johnson
Benefits
RB became the producer of daily washing supplies
Turning China into their second largest market in the world
Getting global increase on healthcare spending
Growing 3~5 percent worldwide in the next few years
Entry Mode
expansion
export
target market
expand product line
expand geographically
require high margin of investment
risky
lack of knoeledge of new market
fast growing market
health & hygiene powerbrands
get to know about the foreign markets
reduce risk
disadvantage
usually very careful as they perceive transport
Corporate Scope
Horizontal integration
Strategic Alliance
M&A
Corporate with Diversey
Diversey
a pioneer and facilitator for life
Why RB corporate with it
provide
revolutionary hygiene technologies & services
builds on
RB’s strength
Diversey’s advanced
convenient, ready-to-use solutions
G7 members
劉志嘉 Charlie
馬培凱 Sean
鄭詠心 Sunday
陳禹丞 Ian
王柏淳 Jack
張傑鑫 Barney
including its brand
Lysol and Airwick
institutional cleaning expertise
hospitals, schools, and office buildings
RB’s strategy
focus on growing clean market in North America
What's in it for RB
expanding innovative products
healthcare facilities, educational institutions, and hospitality centers
achieve the purpose
Creating a Cleaner World
RB has acquired
Mead Johnson & Company, LLC, SSL bloc (Durex and Scholl) and UpSpring, etc
Mead Johnson & Company, LLC
only global company focused primarily on infant and child nutrition
Why RB keep M&A
based on RB’s purpose and vision
make itself be unique
leading global consumer health and hygiene company
Why RB acquire it
control Asian market easily
product diversification
risk hedging
more than 70 products in over 50 countries
➡ In 2017, RB spent $16.7 billion acquiring it
customers will have to buy its products
don't want to be pregnant ↔ have a baby
Durex ↔ Mead Johnson
consistent services
from infants to adults
nutrition, health and hygiene
Mead Johnson has a high market share on infant formula in China (12%)