Newell Company Corporate Strategy Essay
Newell Company: Corporate Strategy
Subject
Marketing Strategy
SECTION B, MBA II
Introduction
The CEO John McDonough oversaw for Newell Company during 1998 oversaw two acquisitions. First was the acquisition of Calphalon and second was the acquisition of Rubbermaid. Calphalon was a privately held manufacturer of anodized aluminum cookware whereas Rubbermaid was a manufacturer of plastic consumer and commercial products. It was decided that the new company would be named as Newell Rubbermaid and would have a greater global presence and a broader product offering.
These acquisitions were viewed as part of the next Newell’s strategy and McDonough identified a need to develop and buy stronger brands because of increasing …show more content…
Newell company corporate strategy was primarily based on the rationale that the company has to continue to grow to the extent that it could cross the threshold of over $10 billion in market capitalization so that it could command higher price/earnings multiples in the market. To achieve this goal Newell Company follows the strategy to make a high-volume/ low cost product and target towards large retail institutions, the larger mass retailers. “Newell is a manufacturer and full-service marketer of consumer products serving the needs of volume retailers”. (Mission …show more content…
The company acquired companies to round out its existing product lines and consolidate industry capacity to achieve efficiency rather than pricing power. The acquisitions also provide Newell with an asset of shelf space at different retailers.
The two pronged strategy however does not provide a solid base for a continual growth pattern. Besides on focusing on just volume retailers the company starts acquiring businesses that supply to small independent customer.
However as the basic strategy of Newell promotes multi brand offering the aggressive strategy of acquiring related businesses that volume retailers would keep on their shelves year in and year out somehow add value to its business portfolio as long as the company stick to its major strategy of serving mass retail customers rather than small independent retailers.
2. What are the company’s distinctive
Subject
Marketing Strategy
SECTION B, MBA II
Introduction
The CEO John McDonough oversaw for Newell Company during 1998 oversaw two acquisitions. First was the acquisition of Calphalon and second was the acquisition of Rubbermaid. Calphalon was a privately held manufacturer of anodized aluminum cookware whereas Rubbermaid was a manufacturer of plastic consumer and commercial products. It was decided that the new company would be named as Newell Rubbermaid and would have a greater global presence and a broader product offering.
These acquisitions were viewed as part of the next Newell’s strategy and McDonough identified a need to develop and buy stronger brands because of increasing …show more content…
Newell company corporate strategy was primarily based on the rationale that the company has to continue to grow to the extent that it could cross the threshold of over $10 billion in market capitalization so that it could command higher price/earnings multiples in the market. To achieve this goal Newell Company follows the strategy to make a high-volume/ low cost product and target towards large retail institutions, the larger mass retailers. “Newell is a manufacturer and full-service marketer of consumer products serving the needs of volume retailers”. (Mission …show more content…
The company acquired companies to round out its existing product lines and consolidate industry capacity to achieve efficiency rather than pricing power. The acquisitions also provide Newell with an asset of shelf space at different retailers.
The two pronged strategy however does not provide a solid base for a continual growth pattern. Besides on focusing on just volume retailers the company starts acquiring businesses that supply to small independent customer.
However as the basic strategy of Newell promotes multi brand offering the aggressive strategy of acquiring related businesses that volume retailers would keep on their shelves year in and year out somehow add value to its business portfolio as long as the company stick to its major strategy of serving mass retail customers rather than small independent retailers.
2. What are the company’s distinctive