Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind.
Stanley Black and Decker, Inc. SWK is promising, despite a somewhat challenging industry environment. The company has strong brand recognition in the industries in which it competes, and also has a diversified product portfolio. Stanley has posted good results so far this year, thanks to solid organic growth, as well as the benefits from ongoing acquisitions.
However, there are some concerns within its Security division, which has been reporting lower revenues over the past few years. Nevertheless, the company has reported good share-earnings growth this year, fueled by higher prices, a lower share count, and cost-management initiatives.
The question is whether investors should build positions in Stanley stock at the current juncture. Will the earnings advances continue? Also, are the shares are a good long-term investment, given the industry backdrop?
We will address these issues by performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats. The company is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions, electronic security and monitoring systems, healthcare solutions, and engineering fastening systems and solutions.
As of January 2,the company employed roughly 51, people worldwide.
Its principal office is in New Britain, Connecticut. Stanley has three operating segments: The CSS business designs, supplies, and installs electronic security systems and provides electronic security services.
It also offers healthcare solutions, including infant protection, pediatric protection, asset tracking solutions, and emergency call products, among others. The MAS division sells and installs automatic doors, locking mechanisms, and electronic keyless entry systems.
Strengths Strong Brand Image: The company has a strong portfolio of brands associated with its products. The Stanley logos are also displayed on construction walls throughout Walt Disney World resorts, through a ten-year alliance with the media conglomerate. SWK sells power tools and hand tools, which accounts for the bulk of its business.
But it also has a security division which designs electronic security systems and provides electronic security services. Stanley also sells automotive doors and locking mechanisms.
SWK also offers custom pipe handling, joint welding, and coating equipment to the oil, gas, and hydraulics sectors. This diversified portfolio of products helps to mitigate risk, as a decline in demand in any one business can be offset by better demand from other groups.
Acquisitions have also enabled the company to expand its presence into a wider range of products and price points, as well as into new geographic markets. Many of these products have features that have never been launched by any firm.
Weaknesses Dependence on U.
Softening of the Security Segment: This has largely been due to weakness in North America, owing to lower volumes within the commercial electronics business. Management has been more focused on growth opportunities in its other segments, and it is trying to determine the future fit of this group within the larger portfolio.
Opportunities Emerging Market Expansion: To boost sales in these markets, the company has successfully released lower-priced products, which have helped contribute to growth in recent quarters.The Black & Decker Corporation (A): Power Tools Division Question: How will you resolve the segmentation challenge faced by the power tools division?
Answer: I would advise to pick Option 3 – Drop The Black And Decker Name from the Professional-Tradesman kaja-net.comuction Black & Decker establishment holds almost 30% piece of the pie (market-share), of The U.S. Force Tools %(5). Appendix 1: SWOT Analysis for Black & Decker Strengths Weaknesses Pioneers of portable power tools business in the US No.
1 market share in consumer and professionalindustrial segment Only 9% market share of the professional tradesmen segment Trade asking for advertising allowances and rebate Name amongst powerful brands in the world.
The Black & Decker Corporation (A) Power Tools Division Course: International Marketing Management Prof. Dr. Lutz H Schminke Marketing Concepts and Commercialization Business Case Analysis Black & Decker Background Black & Decker Corporation is one of the largest manufacturers of power tools and accessories, Do a SWOT Analysis for.
Situational Analysis The 5C analysis framework can be adopted to study the position of Black & Decker.
They have pioneered the portable power tools business and ranked 7th strongest brand in US. This would further enable them to increase their market share in the segment.1/5(1). We will address these issues by performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats.
The Business Stanley Black & Decker was founded in by Frederick Stanley and incorporated in Connecticut. Presentation for a Strategic Marketing case review of Black & Decker Corporations marketing strategy.