black and decker corporation

black and decker corporation

Black & Decker case

SWOT
STRENGHS
 High quality tools as proven in lab and field tests
 Highest power tool brand awareness
 Higher service rating than Makita
 Market share in Tradesmen segment is small which leaves B&D little to lose in making changes to product line
 B&D owns DeWalt, a well respected brand that could be used for power tools division WEAKNESSES
 B&D brand name not attractive for Professional Tradesmen market
 Professional Tradesmen do not respect quality of B&D power tools
 B&D brand name is too closely affiliated with household products

OPPORTUNITIES
 Professional Tradesmen market is fastest growing power tools segment at 9%
 Retailers do not approve of carrying Makita products
 Industrial yellow is not used by any brand and it is associated with safety
THREATS
 Black & Decker has no access to retail channel of discount stores that Makita dominates
 There is a risk of losing market shares in other power tools segments if action taken alienates customers from other segments
 Yellow products could be associated with a lemon or poor products



In response to rising concern over product quality, Black & Decker tested its power tools line thoroughly in both the laboratory and in the field. The Black & Decker power tool line proved to be competitive in performance, reliability, and durability (Dolan 2001). Additionally, test users of unmarked Black & Decker tools deemed the products to be of high quality (Dolan 2001). Results from this experiment prove that Black & Decker products are not mechanically inferior to competing power tools.

Black & Decker is one of the highest rated brand names throughout the world
Black & Decker also rates higher than many other brands, including Makita, in terms of service

Causes for the poor performance in the Professional-Tradesmen segment :
 Professional-Tradesmen do not respect B&D power tools because of the stigma attached to the Black &...