Newell's Strategy Summary

1- Newell has a strategy at the organizational level that the company implements by the end of the1990s. The strategy is seen in its endeavors to expand. The expansion is achieved through acquisitions meant to reach more customers or increase the market share, expand the product portfolio, and increase revenue. The company acquires Rubbermaid and Calphalon in its quest to expand and have a global presence. McDonough believes that a big company can get more attention than a smaller company can. Similarly, a bigger brand can command or dictate the prices in the market. The company’s strategy also centers upon achieving profitability and operational efficiency.
The company is seeking to expand in response to the increasing buyer power, which is
The company is distribute its products through the biggest retailers including Woolworth’s, Home Depot, and Wal-Mart. These big retail outlets have an established brand, and this can help Newell’s business. The company is able to differentiate its products to meet the demands of customers in different market segments. For instance, they separate their products in the “good,” “better” and “best categories”. The another capability of the company is price products consistently for every client, which gets rid of discriminatory pricing. The inflexible payment agreements apply to the large retailers like Home Depot and the local hardware store. When the 1990s finished, Newell faced challenges such as the rise in buyer power that imperiled business. The company also faced a challenge when it acquired Rubbermaid and Calphalon. Calphalon was in a different field of operation as Newell, while Rubbermaid was too big to incorporate into the company’s overall corporate
Calphalon is good because it already has established customer connections and customers have been loyal to the brand because of the consistent quality of its products. Calphalon also employs a price point strategy that coincides with Newell’s pricing strategy. This helps deter the company’s competitors. In addition, Calphalon does not merely sell products; it sells its brand. The satisfaction of customers is critical to the company, which is ideal for Newell. It is imperative that Newell maintains Calphalon’s strategy of pricing, marketing, and customer