POWER TOOLS D l V l S l O N
Black and Decker is a household name across America. Having received the patent fort he first power drill, they are well known for their power tools. In addition to power tools B&D is also known for its various household products, like the Dustbuster.
While B&D celebrated a nearly 30% stake in the in the power tools market across America, They had fallen behind market leader Makita’S 50% share in the Professional-Tradesmen market segment to just 9%. To get back into competition with Makita, B&D would have to answer several questions about their brand and identity, specifically:
Is the Professional-Tradesmen segment worth pursuing?
Since Makita is such a dominant brand in the Tradesmen segment, B&D needs to consider whether the market is valuable to pursue.Overall the Tradesmen segment is 28% of the power tool market, accounting for $420 million dollars in revenue. The top 8 manufacturers account fort he Tradesmen segmen. B&D has brand awareness that is stronger than all of their competitiors. In addition 44% of tradesmen agree that B&D was “one of the best” in the case presented in the Table C. B&D holds 20% of the Industrial segment and 45% of the consumer segment, but these two segments are growing slowly with almost no growth for Industrial segment and only 7% for the consumer segment is oppesed to the 9% growth for the Tradesmen segment.Assuming sustained growth in 3 years, the Tradesmen segment will be equal to the Indsutrial segment although the Consumer segment will remain larger until 2000. The lack of growth in the Industrial segment and the existing dominance of B&D in the Consumer segment leave the Tradesmen segment as the only vaible option for B&D as a source of revenue growth. Given that B&D has such a large share of the Consumer segment, it can use this success to fuel its growth in the Tradesmen segment. Since 80% of the segment’S sales are represented by 3 product... [continues]
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