Black Decker Draft

1. How does the buying behavior of tradesman affect the situation? 2. What is Makita's competitive strategy and what role does Milwaukee play?

Makita:
provide a good baseline option in all major categories; other suppliers had particular product strength, like Skil in circular saws.  the largest single outlet of professional-tradesmen tool sales in 1990 was the Home Depot at $5 million.—largest of the rapidly growing collection of home improvement chain stores.

--Strategy: stock 30,000 items in a 100,000 square foot location, with prices about 30% less than the traditional hardware store, while also providing superior customer service.
--Makita’s rise to marketplace dominance was aided by the rapid development of this new type of distribution.

Milwaukee strategies:
Be the best of the best in the professional tool industry.
Have a solid presence in the industrial segment through the warehouse sales channel. Charge an ultra-premium for tools, and deliver best-of-class service. Makita strategies:
Provide high quality tools at a price premium just below Milwaukee Offer products through every retail channel despite retail grievances. Off limited service and warranty handling for inflated margins.

Strength:
Two research studies: 1. B&D is among the powerful brand names in the world. 2. B&D professional tools are the highest quality in the industry. Household products (15% of the sales) over 50% market share in the U.S., supported heavily with media advertising. Brand strength ranking #7 in the U.S., #19 in Europe.

Professional-industrial segment: high quality, differentiated products and excellent service. Consumer segment: brand recognition and image  #1 position in the marketplace with 50% share over suppliers.

Weakness:
#1 market share position in the consumer and professional-industrial segments, only 9% share in professional-tradesmen segment.  increase the share Makita: 80% share in cordless drills, the single largest...