Newell Company Corporate Strategy Hbs Case Analysis

Transcript

Newell Company: Corporate Strategy SWOT Analysis • Wide product range & depth • Newellization: Brand Name • Relationship with discount retailers • Efficient high volume manufacturing • On-time delivery • Promising future acquisitions • Potential International Market • Declining profitability • Low response time • Increase in low cost competitors • Dependency on mass retailers • Threats from private labels Internal External Strengths Weakness Opportunities Threats INDUSTRY ANALYSIS (Source: Porter’s Five Forces Model) Incumbent Rivals Threat of new entrants Bargaining power of buyers Threat of substitutes Bargaining power of suppliers Private Labels Discount Retailers Competitors with cost advantage from offshoring Newellization Profit improvement & Productivity enhancement processes to integrate acquired product lines Compare income statements Cost structure problems recognition Identify ways to reduce costs Increase operating margins above 15% Corporate Strategy Triangle Competitive Advantage Control Organization Coordination Calphalon: Newellization Test Positives: • Helps expand – Upscale Retailers • Build expertise in Pull Strategies • Strong connections with end consumer • Prevents WearEver cannibalization Negatives: • Risky shift in strategy • Significant SG&A expenses Rubbermaid: Newellization Test Positives: • Accessibility to large shelf-space • Similar distribution channels • Diversification • Demand around the world Negatives: • Large but sick company • Difficult to integrate