Black & Decker Essay

1275 Words 6 Pages
Question 1: B&D leads in two product segments, but trails in the third. Why?

Answer: It seems from the case that there are several reasons why B&D leads in Professional-Industrial and Consumer product segments, but trails in the Professional-Tradesmen segment. It is also clear from the tests performed by Black & Decker that their products were at comparable, or even better at some cases, quality.

Branded as Home Tools: It appears that professional-tradesmen did not want to use the same tools that housewives used at homes (Black & Decker). Tradesmen viewed Black & Decker tools more for home use than being subjected to demands of the job site. This was a perception issue that was hurting Black & Decker big way.
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Image among other tradesmen

Color

Question 3: What are the salient strengths and weaknesses of the Makita and Milwaukee brands? Be sure to discuss each brand’s strengths and weaknesses.

Answer:

Makita’s Strengths:

·     Leadership position in almost all the products within Professional-Tradesmen segment.
·     Leadership position in all distribution Channel types with in Professional-Tradesmen segment. This was pretty incredible to be in leadership position in almost all the distribution channels.
·     Successful use of Membership Clubs channel, where B&D doesn’t even participate. This was one channel where Makita had 80% market share.
·     Concentration on only one segment (Professional-Tradesmen). This provided Makita with focus on only one segment.
·     Perception that Makita provides good baseline options in all major categories, and all other suppliers had particular product strengths. This believe among tradesmen was a major strength for Makita Brand.

Makita’s Weaknesses:

·     One of the Makita’s weaknesses was its bad relationship with retailers. Makita was quoted by retailers as “arrogant and dictatorial”. This could hurt its retail channel.
·     Secondly Makita’s products were

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