Strengths and Weaknesses of the Makita and Milwaukee Brand
Question 2: What are the strengths / weaknesses of the Makita and Milwaukee brand? - Arun
1 paragraph - Focus on quality of both brands, market share for drills and saws for Makita, market share for recip saws for Milwaukee as strengths. Focus on support and distribution for both, price for both, and market share in drills and saws for Milwaukee, and retailers attitudes towards Makita for weaknesses.
With ~$1 Billion of the power tools market geared toward the professional market, Black and Decker’s rivals Makita and Milwaukee were able to control most of the market (~60%). Milwaukee is a privately owned company, which was tailored towards only high-end power tools. This helped Milwaukee gain the highest brand perceptions due better performing and more rugged power tools. Makita, the other major competitor the Black and Decker “had staked out leadership positions in virtually all product and distribution types within the Professional segment.” In cordless drills they had over 80% of the market share. A major reason for this huge market share dominance was due to the rise of home improvement stores such as Home depot and Lowes. These “warehouse” stores; stocked thousands of items and generally at a 30% lower cost, then typical hardware stores. Both Milwaukee and Makita were priced at a premium compared to Black and Decker. While Makita had a huge market share, retailers generally had a negative attitude towards the company. They were seen as “arrogant and dictatorial.” Since they controlled most of the market they were complacent and sold many product through a variety of outlets including discount membership clubs. Many retailers believed they were “trading down” their product.
1 paragraph - Focus on quality of both brands, market share for drills and saws for Makita, market share for recip saws for Milwaukee as strengths. Focus on support and distribution for both, price for both, and market share in drills and saws for Milwaukee, and retailers attitudes towards Makita for weaknesses.
With ~$1 Billion of the power tools market geared toward the professional market, Black and Decker’s rivals Makita and Milwaukee were able to control most of the market (~60%). Milwaukee is a privately owned company, which was tailored towards only high-end power tools. This helped Milwaukee gain the highest brand perceptions due better performing and more rugged power tools. Makita, the other major competitor the Black and Decker “had staked out leadership positions in virtually all product and distribution types within the Professional segment.” In cordless drills they had over 80% of the market share. A major reason for this huge market share dominance was due to the rise of home improvement stores such as Home depot and Lowes. These “warehouse” stores; stocked thousands of items and generally at a 30% lower cost, then typical hardware stores. Both Milwaukee and Makita were priced at a premium compared to Black and Decker. While Makita had a huge market share, retailers generally had a negative attitude towards the company. They were seen as “arrogant and dictatorial.” Since they controlled most of the market they were complacent and sold many product through a variety of outlets including discount membership clubs. Many retailers believed they were “trading down” their product.