What factors have led to Church & Dwight's long history of slow and stable growth?
Church and Dwight can attribute much of its success to the fact that it has concentrated on the production and sales of sodium bicarbonate. Strong family control has shielded management from the problems of defending the company from hostile takeover attempts. The company has successfully taken a commodity chemical, branded it, and marketed it to the point where it controls a dominant market position. It has subsequently capitalized on consumer recognition and loyalty to the ARM & HAMMER brand by introducing multiple consumer products under this logo. As the dominant producer and marketer of sodium bicarbonate products, Church & Dwight has faced limited competition in its primary markets and successfully entered the markets with other consumer products using a low price strategy with limited advertising expenditures. Recent acquisitions now present the company with new challenges as it faces major competition in the consumer products markets both domestically and internationally.
1. What are the major strengths and weaknesses of Church & Dwight?
Strengths
? Over 150 years of experience as a sodium bicarbonate producer and marketer.
? Almost 25 percent of the outstanding shares of common stock are owned by descendants of the company's cofounders.
? Company controls approximately 75 percent of the sodium bicarbonate production in the United States and is also the only producer of ammonium bicarbonate and potassium carbonate.
? Company controls 85 percent of the baking soda market.
? Extensive consumer brand name recognition and loyalty (in 95 percent of U.S. households) which allows the company to promote mult ...