Black & Decker Competition
Now Viewing Black & Decker's competition in: Handtool and Cutlery Manufacture (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What industries does the company sell to? - Construction, auto repair, home improvement, and industrial customers are large buyers of handtools.
How important are distributors and a direct sales force to the company? - Most manufacturers in the industry use distributors, but may have a direct sales force for large accounts.
What is the company’s advertising mix and how successful is it? - Manufacturers often have cooperative advertising arrangements with large retail chains aimed at the end-customer.
How has the company been challenged by product pricing? - Imports have been successful partly because of low prices.
Does the company depend on a few large customers? - Consolidation in the home improvement industry has produced a few very large retailers of handtools.
Competitive Landscape
Demand depends heavily on the construction and building repair industries. The profitability of individual companies depends on marketing and efficient production. Large companies have economies of scale in purchasing and production. Small firms can compete by making specialty products.
Business Challenges
CRITICAL ISSUES
Import Competition - Imports have taken a larger share of the US industry market, especially for lower-cost products like saw blades and cutlery. US imports of cutlery and handtools grew 45 percent in the past five years. Imports from China, the largest exporter to the US, doubled.
Steel Prices Change Rapidly - Prices for steel, the major raw material for handtool and cutlery manufacture, can change more than 10 percent in 12 months. Prices depend on world demand and import restrictions. Prices for cold rolled steel sheet varied 7 percent during 2005, but 30 percent in 2004.
Industries Where Black & Decker Competes
- Consumer Products Manufacturers
- Hand Tools, Power Tools, Lawn & Garden Equipment(primary)
- Cleaning Products
- Construction
- Construction Materials
- Plumbing & HVAC Equipment
- Construction Materials
