Black & Decker Essay
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. …show more content…
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.
· 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.
· 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