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Quinty Thibaud

Home assignment : Black and Decker

PESTEL analysis: Political Economical - law and regulations for warranty periods - regulations for products - global economic crisis and recession affect the protability and the sales - strong competition (worldwide) - increase of prices for raw materials (problems with consumers) - currency exchange rates - cyclic market - today, there are more home owners using power tools for basic maintenance - number of professional users is growing - products which are always supposed to be innovate - IT system and internet are two major aspects in the market - products which are proper to a lot of pollution (water, electricity...)

Social

Technological Environmental

Strengths - strong reputation for product development and innovation - present in more than 100 countries around the world - leading brands in various markets - strong reputation for quality, reliability, design and value - manufacturing operations in 11 countries - diversied product portfolio - great emphasis on sale, marketing activities and after sales service - large segmentation - extensive distribution chain Opportunities - gain sales and market share due to the end of the recession - open own brand stores - recherche and innovation - new acquisitions - internet sales could be implemented

Weaknesses - dont sell directly to the consumers (leak for people who wants specics and appropriates advices, sufcient prominence...) - bad nancial results these last years, operating margin decreased - company aggressively cut costs and expenses

Threats - market highly competitive, with large, well established and recognizable players - market with cyclic purchasing - power of retailers is high - threats from asian producer and their cheaper technology - global economic crisis (inuence on suppliers prices, consumer expectations...) - government regulations

Porter 5 forces: Bargaining power of industry competitors Highly competitive: with large, well established and recognizable competitors large international and domestic companies (Ryobi, Bosh, Makita, AEG, MacAllister...) companies of niche market, but they also target B&D customers High: a lot of new companies appear on the market, a lot of competition these last years High: they can easily increase prices for raw materials, component parts, nished goods Very high: customers preferences can be easily changed, seasonality of products...

Potential entrants Bargaining power of suppliers Bargaining power of customers

Threat of substitute products

consumers have the possibility to use professionals services (laundry services...) but its going to be expensive and not practical for a long time

Marketing mix Product - three product groups: power tools accessories, hand ware and home improvement products and fastening and assembly systems - new designs are important bright designs, different colors, well-designed package...) - B&D doesnt sell directly to customers in any segment - use of extensive network of retailers, wholesalers and distributors. -prices should be the same as before economic crisis cut costs decided, less costs should not be the reason of lower quality - good activity in media channels - should increase spending on advertising campaign in internet

Place

Price

Promotion

GE Matrix: Business Unit Strength High High Market Attractiveness Medium Low Medium Low