Black & Decker Power Tools Division - Case Study

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Module| Session| Course/Theme| Case| Who| When| Where| Case Leads/Due Date| T1| 8| Winning Through Marketing Management| Black & Decker – Power Tools Division| Joseph Galli, VP of Sales and MarketingNoran Archibald, CEO| January 1991| Towson, MarylandUnited States| November 28, 2012| What – Situation/Issues/Risks/ Decision|

1. B&D lost its market share of professional-tradesmen tools segment against Makita Electric of Japan 2. Makita held an 80% share in cordless drills, the single largest product category and a 50% professional-tradesmen tools segment share overall compared to 9% share of B&D 3. B&D maintained #1 market position in the Consumer and Professional-Industrial segments; and only 9% market share in Professional-Tradesmen segment| Company Business Model| SWOT| Competitors| PEST (political, economic, social, technological)| * B&D was the world's largest producer of power tools, power tool accessories, electric lawn and garden tools, and residential security hardware. * Power tools market was categorized in three segments i.e. * Professional-Industrial Tools – commercial contractors working on large projects where corporation generally buy tools for their employees * Professional-Tradesmen Tools – individual contractors such as carpenters, electricians, plumbers, roofers, framers, etc. bought from Home Depot, Ace Hardware … etc. * Consumer Tools (35% market share) – consumers purchased tools for “at home” use from mass merchants e.g. Wal-mart, Kmart and hardware stores * Nolan became CEO in 1986 with 1st profitable year (~$50 million) after 5 consecutive years of losses, growth continued year after year reaching to an operating of income of ~$500 million in 1990 * 1981 – 1985 company lost money with a $158.4 million loss in 1985 * B&D $4.8 billion sales in 1990 (50% revenues from US and 50% from outside world) * Substantial brand equity i.e. #7 in US and...
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