Case Preparation Questions
- 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?
- How does the buying behavior of the tradesman impact the situation? What,
if anything do you learn from B&D's consumer research?
- 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?
- Which action alternative should B&D pursue? Does the DeWalt idea have any
merit? How about the sub-branding option?
- 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?
- 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.