Black & Decker Corporation (A) Power Tools Division Case Solution

Case Solution

Presents Black & Decker's performance against a Japanese competitor while others inside the tools market. Black & Decker is anxious to revive its market share leadership particularly segments in the market.

Excel Calculations

Questions Covered

Why is Makita outselling Black & Decker 8 to 1 in an account which gives them equal shelf space?   (opening paragraph)

Why are Black & Decker‟s shares of the two professional segments – Industrial and Tradesmen – so different?  Wouldn‟t you expect them to be similar?

What if anything, do you learn from B&D‟s consumer research?

Joe Galli‟s objective is “to develop and gain corporate support for a viable program to challenge Makita for leadership” in the Tradesmen segment.  (pg 1)  To gain support, the minimal share objective would have to be “nearly 20% within three years, with major share „takeaway‟ from Makita.”  How realistic is this?

If you think Galli should pursue a “build share” strategy, what actions do you recommend?  Does the DeWalt idea have any merit?  How about the sub-branding option?

Be specific about what you would do and remember you have at least three audiences to please: The end consumer, i.e. the Tradesmen The retailer Nolan Archibald and Gary DiCamillo