------------------------------------------------- Caso: The Black & Decker Corporation: Power Tools Division 1. El menor market share conseguido por Black & Decker en el segmento de Tradesmen puede explicarse principalmente por no haber comprendido al consumidor de este segmento, no haber podido lograr una diferenciación con el segmento Consumer y por no haber aprovechado los canales de distribución para poder llegar al consumidor. El consumidor del segmento bajo análisis es el electricista
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Black and DECKER: power tools Case study Problem Statement Black and Decker has established its brand strength to be among the top ten firms in the United States. By creating the portable power tools business in the early 1990’s and being the world’s largest producer by the end of the decade, the firm has been vouched for offering high quality, differentiated products and excellent service in the Professional-Industrial segment. Powerful brand perception has helped Black and Decker attain the
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BLACK & DECKER Black & Decker Corporation (B&D) tried to run a diversification strategy. During the 1980’s Black and Decker had established themselves as a leader in the power tool industry. However, they had a feeling that that the market for such tools was maturing to the point where expansion within the industry would provide little or no additional revenues so they decided to diversify. Black and Decker began their expansion operation by acquiring General Electric’s housewares business
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Cause of B&D’s 9% share in the Tradesman segment; In the 1990’s Black and Decker had a great position in the market for their products to appeal to the Professional Industrial segment and the Consumer segment but when it came to the Professional Tradesmen segment they were lacking. Their 9% market share vs. Makita’s 50% market share in the tradesmen segment was incomparable. Makita clearly had a better product in the eyes of the Professional Tradesmen. In the Professional Segment most of
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BLACK & DECKER CASE Problem Statement: With Black & Decker being one among the most powerful brand names in the world and establishing its professional tools to be the highest quality in the industry, B&D failed to make an impact in the Professional-tradesmen segment. B&D was known for offering high quality, differentiated products and excellent service in the Professional-Industrial segment whereas its brand recognition, and image helped it attain the #1 position in the market place for
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Black & Decker Case Memo If you think Galli should pursue a build share strategy, what actions do you recommend? Does DeWalt idea have any merit? How about using current name? Remember you have at least three audiences to please: a. The end consumer, i.e. the Tradesman b. Retailer c. Nolan Archibald and GarydiCamillio Actions that I recommend to Galli: * He should focus on leading distribution channels which are “Two-step” and “Home Centers”. Respectively 40% and 25% percent
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Black and Decker Study Case 1. What is the cause of B&D’s 9% share vs. Makita’s 50%? The brand perception associated with B&D was in the lower half in comparison Makita. People believed B&D provided good products for the consumer but not for the professional. This view of the consumer product translated into the professional segment. Coloration may even have an impact on this as people that used the colors associated with B&D were not taken seriously in the professional segment
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Joseph Galli, the vice president of sales and marketing for power tools in Black & Decker Corporation, is presented with options for the next steps to solve the company’s problem of having low sales in the Professional-Tradesman segment where profitability is practically zero. B&D only holds about 9% of the market share which is shockingly low considering its high quality and its success in its other two segments. Galli is now considering three options: I. Focus on its successful segments
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Case overview:The pioneer of the power tools industry is facing the blues of very low market share compared to the leader in a particular product segment. The case depicts a peculiar situation of a market leader in two product segments taking a backseat and suffering at the hands of strong competitors in another product segment. The case also brings out importance of the consumer perception and behavior in selling the product. The reasons for different and often indecipherable consumer behavior
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I. PARTIES TO THE CASE: Kenneth L. NORD, Plaintiff-Appellant, v. the BLACK & DECKER DISABILITY PLAN, Defendant-Appellee. II. FORUM: The district court ruled in favor of Black & Decker Corp. The 9th Circuit Court of Appeals reversed III. STATUTE(S) INVOLVED IN THE CASE: The court is being asked to interpret if Black and Decker denial of his disability benefits violated ERISA. The court must determine whether the claimant is entitled to social security disability benefits. IV. STATEMENT OF FACTS:
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