Business Analysis of Black and Decker

3162 Words7 Pages
bulb-icon

Recommended: The Importance Of Product Quality In A Company

Business Analysis of Black and Decker

1. FINDINGS Black and Decker's DeWalt line has been so successful in the USA that it is now the standard for both the Professional-Industrial and the Professional-Tradesman market segments. Nolan Archibald, Chairman, President and CEO of Black and Decker (B&D) saw the potential in 1994 to increase the companies market share through worldwide sales of B&D products. While the company had a definite presence in the European Consumer Power Tools market segment, it lacked penetration in the Professional Power Tools segment. On the other hand, in Japan, where there was a huge market for professional power tools, B&D's market penetration was negligible compared to its competitors. B&D's vision for DeWalt is to be the global "Value Power Tool" provider of choice for every Professional Tradesperson and all worldwide Industrial markets. Based on the facts, the product managers of the DeWalt line have developed a global strategy based on the following conclusions: · DeWalt is a highly successful product in the US market. B&D must leverage its brand identity and marketing strategies employed in the US and also capitalize on their established quality and pricing. · B&D must explore the formation of strategic alliances with local distributors. Multiple and/or hybrid channels must be used to reach customers quickly and as effectively as possible. · Through a global strategy, B&D can appeal to consumer homogeneity by offering lower product costs while maintaining high product quality. The lower product costs derived from the economies of scale will maximize customer value exchange. · B&D must aggressively employ a hybrid push-pull communication strategy to be successful in the two markets. This will enable B&D to get the DeWalt name out to more customers in a diverse geography. · While Elu has performed better than B&D Professional and B&D Proline product lines in the European market, its lack-luster revenues compel B&D to replace the Elu product line with the DeWalt line. · There exists cultural differences between the US market and the European and Japanese markets. While the European market is similar to that of the US, the Japanese market warrants a thorough study of local conditions before entering it. The global strategy must consider factors such as brand loyalty, product recognition, brand image and channel intermediaries....

... middle of paper ...

...se "transit advertising". Following is a tabulated set of recommendations and associated timeframes: Recommendations Implementation Plan/Responsible Party Timeframe 1 Combine Professional Product Lines in Europe Market DeWalt as the Professional Product/ Marketing & Sales task force Immediately 2 Maximize Market Potential Offer competitive prices, value, variety of products/ Product Manager/Sales task force Immediately 3 Maximize Market Potential Provide Sales and Customer service support to distribution channels/ Sales task force & manufacturing Immediately 4 Use Distribution Channels to their potential Use existing assembly plants Europe to centralize manufacturing and assist in implementing JIT delivery systems / Manufacturing & Product Manager Immediately 5 Employ hybrid push pull communication strategy Advertise, provide informational seminars, demonstrations / Sales & Marketing Task force Immediately 6 Compile data and interpret Japanese market Form a task force that consists of a representative from manufacturing, marketing, sales, and product management to study and interpret the data. Immediately /Ongoing study DeWalt in Europe and Japan Marketing and Product Management

Show More
Related

  • Business Strategic Analysis Of The Norfolk Southern Balanced Scorecard

    1153 Words  | 3 Pages

    The Balanced Scorecard is a business strategic planning system used by management to make decisions based on information provided about the business from four different perspectives. The first of the four perspectives is the financial perspective. Which means that we evaluate our business and conduct research from the shareholders perspective. Next is the internal business perspective, which is an internal evaluation of what the business must be good at to excel. Next is the innovation and learning perspective which is an evaluation of the firm’s ability to continue to improve and create value. The final perspective is the customer perspective, which is looking at the business activities from the customers

    Read More

  • Bass Pro Shops Business Analysis

    1266 Words  | 3 Pages

    Bass Pro shop started as an 8-foot-long display area in the back of a liquor store in 1971 and has expanded into a Fortune 500 company that employs over 8,800 employees and has annual sales estimating somewhere around $1.25 billion today. The question at hand is: should Bass Pro Shops continue to expand, and if so at what rate should they? The primary problems they might face when expanding are as follows. Could expansion hurt their brand image and if so how? The Competition outside of Missouri is going to be much greater. They will not have the publicity and brand recognition as they do in Missouri. Does Bass Pro have the financial resources in order to open new stores, if not then what are some options they can exercise? Will Negative publicity threaten their brand image as they continue to grow? Is the cost of overhead going to be too high initially for Bass Pro to expand at a fast rate, if so then at what rate should they expand yearly? These are all problems Bass Pro is going to have to face in the future. Through research and extensive problem solving, they will be able to make an accurate decision on rather they should expand.

    Read More

  • GENICON: A Surgical Strike into Emerging Markets

    1623 Words  | 4 Pages

    A price skimming strategy is recommended for Genicone for Brazilian market to minimize the payback time investment and to thwart other foreign players from entering the market. Market entry mode for Genicon should be licensing or joint venture rather than exporting. This is because licensing and joint venture provides much more control of the operations which is essential in healthcare equipment industry. A global product strategy should be adopted because international standards are similar for surgical instruments. Marketing strategy should be sales promotion for Genicon because this industry is characterized by push-factors of distribution channel, rather than pull-factors of demand. It is anticipated that Genicon will be able to capture a significant market share in a short period of time by following above mentioned strategies and tactics.

    Read More

  • Business Analysis: BHP Billiton

    978 Words  | 2 Pages

    As a natural resources company, BHP Billiton is vulnerable to changes in the environment and policies regarding the environment. With each environmental downfall, profit is jeopardized, which can push growth and innovation back. BHP Billiton has been heavily affected with blackouts in South Australia that has been interrupting production in Olympic Dam since September 28 during a two-week blackout. Without power supply security, BHP Billiton is having difficulty keeping power prices affordable in South Australia. The total estimated profit loss of the power outages was $450 million. These obstacles have disturbed BHP Billiton’s ability to compete globally with electricity price rises.

    Read More

  • 3M Corporation Business Analysis

    1560 Words  | 4 Pages

    The Minnesota Mining & Manufacturing Corporation (3M) was founded in 1902. It reported sales revenues of $16.7 billion during the year 2000. These revenues came from 3M's six business divisions: industrial; transportation, graphics, and safety; healthcare; consumer and office; electro and communications; and specialty materials. All business divisions were profitable in 2000. The same year, the company made more than 60,000 products and about $5.6 billion sales came from products that had been introduced during the prior four years and another $1.5 billion came from products introduced during 2000. Annually, more than 75,000 employees worked to create more than 500 new products. The company was recognized for its vertical organizational structure, with businesses established by technologies and markets. It was one of the most admired corporations in America and was awarded the National Medal for Technology, the U.S. government's top award for innovation, in 1995.

    Read More

  • Financial Analysis Of General Electric

    1802 Words  | 4 Pages

    General Electric Company (GE) is a diversified technology, media and financial services company. With products and services ranging from aircrafts engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products, it serves in more than 100 countries. This analysis will use financial ratios to see just how GE is performing as a Fortune 500 company.

    Read More

  • Business Case Analysis

    2011 Words  | 5 Pages

    Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.

    Read More

  • Business Case Study: The Fitzgerald Machine Company

    1900 Words  | 4 Pages

    Don Bradish was recently hired to fix scheduling issues with the new company in which he works, The Fitzgerald Machine Company. There are a few relevant facts that were given in this case study. The first and foremost fact is Mr. Bradish was hired because the company is having issue with their scheduling. This is important because he comes in with a relevant degree and years of experience with a reputable company. He is going to be looked for to find a solution to the issue outlined in the case study. The second relevant fact in the case study is that the company that The Fitzgerald Machine Company is working with is having labor issues. This is considerable because the $300,000 order is a considerably large

    Read More

  • Sears Case Study

    1043 Words  | 3 Pages

    Poor organizational management, failure to innovate and adapt to the environment, and an outdated brand image have all contributed to Sears massive decline. By not setting a clear organizational strategy, executives of Sears strayed away from innovation, allowing for competitors to attract Sears loyal customers to their organization. In addition, the outdated brand image of Sears has failed to meet the ever changing customers of today’s society. Overall, there are many reasons that have led to the downfall of a once powerful retail giant.

    Read More

  • Business Analysis of IBM

    3708 Words  | 8 Pages

    For many years, IBM succeeded in holding a very good market position. In fact, the company achieved a very high market share and huge profits. However, this situation did not last forever. In 1990, IBM experienced its first quarterly loss of $2billion due to some unexpected accounting charges. However, revenues increased from $62.7 billion in the previous year to $96 billion. In 1991, the c...

    Read More

  • General Electric Case Study

    1048 Words  | 3 Pages

    General Electric (GE) is a public company that provides services in the following segments: Energy, Technology, Infrastructure, Capital Finance, as well as Consumer and Industrial. GE, along with 3M and Siemens, all compete in the Diversified Machinery Industry whose products range from large turbines and medical equipment to laundry machines and coffee pots. This is a unique industry that has pure competition where companies have products that are mechanically the same, but is completely open for differentiation of those products. Products will lack value if they are not differentiated from their competitors’ products in the eyes of the consumer. Additionally, innovation is extremely important in this industry causing those who do not innovate to lose profitability quickly.

    Read More

  • Sears Company Analysis

    2561 Words  | 6 Pages

    Sears has seen many different changes in business and has had to adjust to t...

    Read More

  • Case Analysis Of Siemens

    1780 Words  | 4 Pages

    Siemens is a German conglomerate that specialise in electronics and electrical engineering. They currently operate in four different sectors, these being Healthcare, Industry, energy and Infrastructure & Cities sector (Siemans a). They are represented in 190 countries (Siemens b), employ around 362,000 employees (Siemens c) and in 2013 achieved a revenue of €75,882 million and a net income of €4,409 million (Siemens d). This essay will focus on Siemen’s energy sector.

    Read More

  • Business Analysis: General Motor Company

    1101 Words  | 3 Pages

    In the last few decades, America’s automotive industry has been losing revenue, decline of market share, and employment reduction but international business in the auto industry has been the opposite. For instance, General Motors (GM) have been doing poor in the automotive business while Honda, a Japanese manufacture have been increasing their sales, market shares and employment.

    Read More

More about Business Analysis of Black and Decker

Open Document