1. How does the buying behavior of tradesman affect the situation? 2. What is Makita’s competitive strategy and what role does Milwaukee play? Makita: provide a good baseline option in all major categories; other suppliers had particular product strength‚ like Skil in circular saws. the largest single outlet of professional-tradesmen tool sales in 1990 was the Home Depot at $5 million.—largest of the rapidly growing collection of home improvement chain stores. --Strategy: stock 30‚000 items
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| |SWOT analysis(Strength Weakness Opportunity Threats) can be applied to this case. | |End users hold a perception that Balck & Decker Professional-Tradesmen products are poor in quality. | |
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In this case‚ Black & Decker Corporation (B&D) is facing a major challenge in the power tools market. The industry is segmented into three categories; Consumer‚ Professional-Industrial‚ and Professional-Tradesmen‚ and while B&D holds the biggest market share in the Consumer segment‚ they are trailing far behind in the Professional-Tradesmen segment‚ with a meager 9% market share. Though this is a growing market segment‚ B&D is barely making any profits from it‚ and a new strategy is needed if they
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BLACK AND DECKER CASE ANALYSIS Black and Decker a company that has a long history of innovation‚ is a great example of how an organization must constantly adapt to a changing environment. As a company that has a presence of over one hundred years it had to reengineer itself‚ when after years of dominating the market it started losing market share. It is easy to see why a company that was the first to introduce products like the first ½“ special drill was the first all-sleeve-bearing power tool
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Case Analysis: The Black & Decker Corporation Synopsis Black & Decker Corporation is a corporation based in Towson‚ Maryland‚ United States‚ that designs and imports power tools and accessories‚ hardware and home improvement products‚ and technology based fastening systems. Recent research studies showed that B&D is one of the powerful brand names in the world because of its professional tools that has high quality in the industry. During the early 1980’s; sales started to decline and it posted
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Brittani Edwards April 6‚ 2011 MKG 631 Black and Decker Case Study Cause of B&D’s 9% share in the Tradesman segment; In the 1990’s Black and Decker had a great position in the market for their products to appeal to the Professional Industrial segment and the Consumer segment but when it came to the Professional Tradesmen segment they were lacking. Their 9% market share vs. Makita’s 50% market share in the tradesmen segment was incomparable. Makita clearly had a better product in the
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BLACK & DECKER CASE Problem Statement: With Black & Decker being one among the most powerful brand names in the world and establishing its professional tools to be the highest quality in the industry‚ B&D failed to make an impact in the Professional-tradesmen segment. B&D was known for offering high quality‚ differentiated products and excellent service in the Professional-Industrial segment whereas its brand recognition‚ and image helped it attain the #1 position in the
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Despite maintaining a very strong brand name and being #1 in the Consumer & Industrial segments of the power tools market‚ Black & Decker (B&D) was being significantly outsold by Makita Electric of Japan‚ who had taken over the Tradesmen segment with 80% market share in cordless drills and 50% overall share in this segment. Tradesmen appeared to perceive the B&D brand as a household product unworthy of their usage given B&D’s success in the Consumer segment and Makita’s dominance
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NICHE CONSULTING GROUP 101 Madison Avenue New York‚ New York April 24‚ 2010 John F. Lundgren President & Chief Executive Officer Stanley Black & Decker 1000 Stanley Drive New Britain‚ CT 06053 Dear Mr. Lundgren‚ In response to your request‚ an evaluation of your firm‚ Stanley Black & Decker‚ was conducted to determine the strategic issues and problems within and surrounding your firm. This consisted of a review of the external environment‚ a SWOT (Strengths‚ Weaknesses
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be used as a building block to promote Grunewald’s plan for creating a global lock business. It would also help to improve market knowledge along the dimensions of completion‚ consumer segments and product requirements. Another factor is that Black & Decker would now have a worldwide distribution system. the factors that stand in the way would be problems in loosing key managers‚ simplifying production design and engineering and overcoming regional differences. 2. What are the organizational
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