introduction

Topics: Home, Furniture, Manufacturing Pages: 3 (609 words) Published: January 21, 2014
Written Word Count (Excluding Tables & Charts): 1381

Masco is an American company founded in December of 1929. The company originally began as a manufacturer of machined automotive parts but over a 60 year period successfully grew into a company that sold a broad portfolio of Building and Home Improvement products, Oil-field and Related Products, and Transportation-related products. The company had a reputation for innovation and has developed of portfolio of successful brands. Decisions:

Masco management is looking to expand into new consumer product markets beyond the kitchen and bathroom, which their portfolio of products currently covered. The furniture industry had become an industry of interest. When considering product expansion, the decisions that Masco needs to make are outlined in the table below:

How does Masco expand into new consumer product markets beyond the kitchen and bathroom?

Is the household furniture industry an attractive area for diversification?
What are the alternatives for product market expansion?

Will our competencies allow us to be successful in this market?
Will our competencies allow us to be successful in this market?

Does this business compliment our other businesses?
Does this business compliment our other businesses?

Are there synergies to be gained that will make the company more competitive?
Are there synergies to be gained that will make the company more competitive?

Should we enter this industry and who should we acquire?Should we enter this industry and who should we acquire?

Masco’s requirements for new product expansion:

Fit under the theme of “great products for America’s great homes”. •A manufacturing company focused on acquiring businesses that were relevant to their core business. Masco did not view their acquisitions as decisions purely based on financial return. •Avoid high growth industries and seek those that have been slow and evolutionary and where competition is...
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