The Black & Decker Corporation (A) Harvard Case Solution & Analysis

The Black & Decker Corporation (A) Case Study Help

SWOT Analysis

Appendix 1 shows the analysis of the current focus. Weakness is the biggest concern as the brand is related to the consumer group. Due to the same problem and lack of discrimination, contractors believe that B&D is of poor quality. However, the benefits are significant. Overall, B&D has a strong brand name. In addition to the misunderstandings, their products are of high quality and their opinions on good service are complete. In addition, the steady decline in Makita customer satisfaction is an opportunity which B&D should take advantage of.

Competition (Positioning)

Appendix 2 presents a graph of market share perception and brand recognition. It is clear that in addition to the high recognition of the brand; Decker did not gain a larger market share. In addition, thisindicates towards the relationship between the market share and the product quality, presenting B&D’s current position and targeting as well as a vision for customer assets.

Alternatives Evaluation

1-      Harvest Professional-Tradesmen Channels

This is the fastest growing market segment, and harvesting will be a bad decision as it will only give an advantage to the competitors, outperforming this market segment with excellent brand awareness. The competitors will immediately benefit from Black & Decker’s inefficient distribution method. After careful analysis, we have come to the conclusion that this decision will cause significant loss incurrence and might affect both the “professional-industrial” and “public assets” parts.

The perception of market segments for consumer goods is influenced by the purchase of goods by professional market segments, which might provide an advantage to competitors. Black & Decker’s brand strategy produces high-quality assets and creates suspicion and uncertainty about entering this market segment. This will not be a viable option.

2-      Get Behind Black & Decker Name with Sub-Branding

This option has both positive and negative effects. Previous attempts at the name have failed to rebuild the Professional-T segment,because the results are unpredictable and costly; this strategy is very risky. In addition to which, the negative perception of the B&D Professional-T class is very detrimental. Users are professionals whose livelihoods depend on these products, and their perception of low quality and low durability influences the assets from B&D.

However, the B&D sub-brand plan has been completed in the past. In addition, it has successfully adopted a similar strategy for saw blade replacement. Consumers feel that Black & Decker offers an excellent customer service and excellent warranty on the devices, which is very beneficial and valuable. This option may be feasible butthe risk is very high andit is cost and time consuming, which makes it currently disadvantageous.

3-      Drop the Black & Decker Name from the Professional-Tradesmen Segment

There are several benefits of this option. There is not any negative view or association with this strategy. In order to change the brand;DeWalt is perfect for its popularity and buying interest. The new brand will facilitate the relocation of products, related to price, color and quality. The main strategy is to launch new, high quality and brand new products at competitive prices. This will help resolve the issues of discrimination and cognition in the B&D Professional-T industry. This market perception stems from a conversation with customers, so the introduction of a new brand drives them to talk.

4-      Other Alternative (Enhance retailers and distributers relationship and generatedifferentiation by replacing the color of the tools from charcoal to IndustrialYellow)

Changing the color can lead towards product differentiation; instead of carbon color, industrial yellow distinguishes the consumer market segment from the professional T segment. In addition, the development of distribution channels will facilitate the customer access. In addition, B&D needs to improve its relationship with retailers and take advantage of the tension between Makita and retailers. This will allow B&D to increase its market share.


The integration of options 3 and 4 will be perfect for Black & Decker’s long-term strategy. The rebranding must be done in conjunction with DeWalt, which will provide benefit from the B&D warranty and B&D service. The new DeWalt brand product will be industrial yellow as it is very attractive and tied to safety. DeWalt’s prices should be competitive and consistent with Makita, in order to avoid misunderstandings about lower prices being associated with poor quality.

In terms of distribution, B&D should use two-phases and home distribution channels that account for 65% of sales in the Professional-T segment. The brand’s new products should be primarily those which have undergone high-quality tests, such as: electric saws and electric drills. If you effectively and economically manage the promotional problem; you can achieve Black & Decker’s financial goals in three years.................................


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