Robin Hood SWOT analysis
Cooper Industries Corporate Strategy
Reputable maker of engines and compressors to propel natural gas.
More than 150 years of Business duration.
Cooper Industries acquired more than 60 manufacturing companies in 30 yrs.
Q1. What is Cooper’s corporate strategy
Cooper Industries’ main corporate strategy is broad diversification through M&A.
Cooper Industries acquired firms in order to lessen its dependence on cyclical natural gas industry and to exhibit stable earnings.
Cooper Industries acquired firms that had stable earning, a broad customer base and proven manufacturing operations using well-known technologies.
Cooper Industries had a good corporate level strategy of diversification.
Copper Industries acquired both related and non-related businesses.
As a result, Cooper Industries could exhibit stable earnings.
Reasons for Cooper’s diversification
Threats of its original industry :
Low growth level
Unstable market(cyclic)
Technology Issues
Expensive labor and high costs.
Cooper’s strengths :
Skilled labor and high technology that could be used in other businesses
Financially abundant.
In order to refrain from possible threats and maximize its strengths, Cooper chose to diversify its business both in size and scope.
By diversification, Cooper could achieve,
Update of processes and equipment
Retain of Brand power
Retain of skilled labor and consolidated plants
Retain of cheap labor and capital(by moving to Southern area)
Overall, Cooper’s corporate level strategy can be regarded as good because it adds value in various ways.
Cooper could gain market power and economies of scope by related diversification
By related diversification and vertical integration, Cooper could reduce costs of primary goods and support activities below competitive level.
Cooper could also develop and exploit economies of scope by
Combining duplicate product lines to one division.
Rationalizing manufacturing facilities to close
Reputable maker of engines and compressors to propel natural gas.
More than 150 years of Business duration.
Cooper Industries acquired more than 60 manufacturing companies in 30 yrs.
Q1. What is Cooper’s corporate strategy
Cooper Industries’ main corporate strategy is broad diversification through M&A.
Cooper Industries acquired firms in order to lessen its dependence on cyclical natural gas industry and to exhibit stable earnings.
Cooper Industries acquired firms that had stable earning, a broad customer base and proven manufacturing operations using well-known technologies.
Cooper Industries had a good corporate level strategy of diversification.
Copper Industries acquired both related and non-related businesses.
As a result, Cooper Industries could exhibit stable earnings.
Reasons for Cooper’s diversification
Threats of its original industry :
Low growth level
Unstable market(cyclic)
Technology Issues
Expensive labor and high costs.
Cooper’s strengths :
Skilled labor and high technology that could be used in other businesses
Financially abundant.
In order to refrain from possible threats and maximize its strengths, Cooper chose to diversify its business both in size and scope.
By diversification, Cooper could achieve,
Update of processes and equipment
Retain of Brand power
Retain of skilled labor and consolidated plants
Retain of cheap labor and capital(by moving to Southern area)
Overall, Cooper’s corporate level strategy can be regarded as good because it adds value in various ways.
Cooper could gain market power and economies of scope by related diversification
By related diversification and vertical integration, Cooper could reduce costs of primary goods and support activities below competitive level.
Cooper could also develop and exploit economies of scope by
Combining duplicate product lines to one division.
Rationalizing manufacturing facilities to close