Mag-Lite, Made in America

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MADE IN AMERICA
MAG-LITE flashlights.

From US$ 125,- to a US$ 500 million company

INTERNATIONAL ENTREPRENEURSHIP
UNIVERSITY OF AMSTERDAM 2012/2013
PROF. DR. TSVI VINIG

Table of content

Introduction| 3| |
| | | |
PART I - BACKGOUND| 5| |
| | | |
1.1| The Company| 5| |
1.2.| The Entrepreneur and the Team| 6| |
1.3.| The Idea and Value Proposition| 7| |
| | | |
PART II - BUSINESS AND BRANDING STRATEGY| 9| |
| | | |
2.1.| Business and Branding Strategy| 9| |
| 2.1.1. Made in America| 9| |
2.2.| Funding Model| 11| |
2.3.| Company Growth and International Strategy| 11| |
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| | | |
PART III - ANALYSIS| 12| |
| | | |
3.1.| Porter's Five Forces| 12| |
3.2.| MAG-lite and the Industry Forces| 13| |
3.3.| Business Strategy, from Broad to Narrow Scope. | 15| | 3.4.| Closing the Loop| 16| |
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4.| Conclusion| 17| |
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5.| Literature| 18| |
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6.| Appendix| 19| |
| Porter's Five Forces Framework| 19| |
| Causal Loop Diagram for the Entrepreneurial Year of 1979 | 20| | | | | |

Introduction.
Every successful enterprise had to start somewhere. Some encountered more humble at the beginning, some less. Some had the advantage of large capital investments, some started with a couple of bucks. Some had a professional office or laboratory to their disposal and some launched a big entrepreneurial idea from the back of the garage. There is a great difference on how entrepreneurs gained success. Entrepreneurial success stories can be found behind a dozen of daily used prefabricated products and every down-town city corner. However, there is just a small amount of entrepreneurial success stories we are familiar with or interested in. Only the success stories that are almost romantic, like reading a never ending novel attract our attention. Why is the vast majority of the western world so familiar with the success stories of Google, Apple, HP, Amazon and Microsoft? Why are these entrepreneurial stories so attracting and inspiring? Because all of these captains of the industry have the possibility to literally swim in their money? No, because they started their venture from next to nothing, in the back of the garage with a meagre amount of money and just being privileged with their vision, passion, and determination for success. It are these rare adventures and individuals whom raised their companies from obscurity into a multi –million dollar business. These entrepreneurs receive our attention and inspire us of doing things we never thought to accomplish. These entrepreneurs, and often college drop-outs, show us that a privileged background is not mandatory to success. These entrepreneurs show us that the top is accessible to every ordinary man and woman. MAG-lite

Although many inhabitants of the western world might be familiar with the above introduced company’s, there are some outstanding entrepreneurial success stories we are less familiar with, but nothing less interesting or inspiring. One of these entrepreneurial adventures is the one of Anthony Maglica. The founder of America’s most famous and most used electronic tool ever, the MAG-lite flashlight. The number 8 on America’s list of the 10 biggest businesses started in the back of the garage (Get Entrepreneurial, 2011).

Although Europeans may be less familiar with the MAG-lite flashlights, the MAG-lite flashlight is almost a commodity for every North-American households and standard indispensable gear for a large base of professionals since 1979. And for over more than 30 years this flashlight, with an unchanged basic ergonomic design, is still undefeatable in its industry.

Aim of the case study
The aim of this case study is to uncover the...
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