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Ansell International, a key global manufacturer and distributor of dipped latex production of various types of protective gloves and moulded rubber products. ...
As part of Ansell International¡¯s strategy to ensure high quality and the flexibility to implement new products and technology, it needs to consolidate the manufacturing and grant full direct control to its Malaysian operations. ...
As for managing the raw material risk, Ansell International will also be looking into securing a long term contract for natural latex and spent part of its budget on doing Research and Development in synthetics. Though proper mergers and acquisitions globally, Ansell will be able to consolidate the various household brands and strengthen its competitive advantage.
1. Case Background
In 1905, Ansell International started a backyard business in Melbourne as a manufacturer of assorted rubber products. ... The company later became a subsidiary of Pacific Dunlop and its products were globally marketed in USA, Canada, Japan and New Zealand. Ansell¡¯s sales volume in 1997 was $A856 and became a world leader in providing protective rubber products. ... Ansell seeks for better strategic marketing and lowering operating costs. Many problems are challenging the Ansell International management, problems like the Spanish flooding the major European markets with cheap products, the increasing cost of raw material and the global market is substituting rubber products with synthetic products.
Ansell aim to remain competitive by looking for lower cost production facilities, managing raw material risk, consolidation of brands and focus on research and development in the technology of rubber products manufacturing processes. Appendix A shows the SWOT analysis for Ansell International. ... Case Issues
We are able to identify some key case issues for Ansell International, they are described as followed:
- Identify the global marketing forces and other problems working against the Ansell. ...
f) Moving HQ to USA, because it is closer to major markets and inline with its overall strategy of full internationalisation. ...
a) Ansell will consolidate the various household brands in the country. ... Analysis of the Case
Marketing:
The approximate market share
USA Europe Australia
Medical gloves 15-20 % 30-35 % 75-80 %
Industrial gloves 30-35 % 30-35 %
Condoms 20-25 % 75-80 % 75-80 %
The table above shows the approximate market share of Ansell International. ...
From historical records, Ansell used to do very well in Australia, but this only account for 10% of its revenue. Ansell needs to do well in the other parts of the world too. Ansell cannot continue to use its past marketing strategy to run the company. ... In Australia, Ansell can still venture into promoting industrial gloves.
Ansell face challenges from Spain in the competitive European market. ...
This product substitution had eroded much of Ansell market share and result in a very aggressive price war. To counter this threat, Ansell had focus on producing high quality rubber products to protect its high-end market. Ansell also focus on reducing the cost of products by using RND to create better and cheaper manufacturing processes. ...
Manufacturing:
In order to remain as the world leader in the manufacture of rubber products, Ansell¡¯s marketers need to formulate the most efficient marketing strategies that consists of using the most cost effective production method and creating best distribution channels. The major manufacturing plants should combine and be located in an area where it is near cheap raw materials and all the necessary suppliers. The plant should also be in the centre of all its market so as to ease the distribution. ... Ansell is able to get long term contract in Malaysia for its supply of raw materials.
Approximate Word count = 2912
Approximate Pages = 11.6
(250 words per page double spaced)
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