Black and Decker
Case Preparation Questions

  1. What is the cause of B&D's 9% share v. Makita's 50% share? Why are B&D's shares of the two professional segments - Industrial and Professional so different? Would not you expect them to be similar?
  2. How does the buying behavior of the tradesman impact the situation? What, if anything do you learn from B&D's consumer research?
  3. What is Makitas's competitive strategy and what role does the Milwaukee brand play? Why is Makita outselling B&D 8 to 1 in an account that gives them equal shelf space?
  4. Which action alternative should B&D pursue? Does the DeWalt idea have any merit? How about the sub-branding option?
  5. Joe Galli's objective is to "develop and gain corporate support for a viable program to challenge Makita for leadership" in the Tradesman segment (p.1). To gain support, the minimal share would have to be "nearly 20% within three years, with major share take-away from Makita." How realistic is this?
  6. If you think Galli should pursue a "build share" strategy, what actions do you recommend? Be specific about what you would recommend and remember you have at least three audiences to please: i) the end consumer, ii) the retailer, and iii) Nolan Archibald and Gary DiCamillo.