Mgmt 324 Case Write-Up Sample

Mgmt 324 Case Write-Up Sample - Black & Decker (B&D) Case...

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Black & Decker (B&D) Case Study February 14, 2011 GROUP D4 SECTION 0004 XXXX – 0000001 YYYY – 0000002 ZZZZZ – 0000003 HHHH – 0000004
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B&D produces portable power tools for three different market segments all of which are under the B&D family name. It only has a 9% market share in the professional- tradesmen segment, despite its marketer leader position in the consumer and industrial segments. In the tradesman segment, B&D is defeated by Makita in all product types (see Exhibit 1) and all channels (see Exhibit 2). Overall, Makita takes 50% market share in the segment and is followed by Milwaukee with about 10% market share. While the market size for the tradesmen segment is the smallest among the three at 420 million dollars a year (industry wide), the growth rate is the fastest at 9%. Main Analyses (root causes analysis or deep analysis of main problem) To explore the root causes of B&D’s inability to appeal to tradesmen, we try to analyze the case from three aspects: consumer, company, and competition. Consumer: The customers that make up the three market segments have very different purchasing motivation and behavior: (1) Customers from consumer segments are mainly handymen and normal home users. They buy their portable power tools mainly at mass-merchandisers and hardware stores. They tend to be price sensitive; (2) Purchase decisions from industrial segments are usually made by company purchase agents who are professional buyers. These people do not use the tools by themselves, but develop rich knowledge about product quality with plenty of feedback from company users. They are more interested in quality due to demanding working conditions, probably less in service since they normally stock a lot of tools. (3) Tradesmen are contractors like plumbers, electricians, and carpenters. They buy the tools for use on their job sites to make a living. For tradesmen, “no tools” means “no job”, and “no job” means
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Mgmt 324 Case Write-Up Sample - Black & Decker (B&D) Case...

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