Stanley has been a prominent manufacturer of high-quality tools since 1843. Stanleys reputation has been a key
Question:
Stanley has been a prominent manufacturer of high-quality tools since 1843. Stanley’s reputation has been a key strength and has contributed to its success throughout the years. Black & Decker has been a leading producer of power tools and accessories in the United States since its inception in 1910. The two firms merged operations in 2010 to form Stanley Black & Decker.
Stanley Black & Decker markets its products worldwide, emphasizing the United States, the United Kingdom, and Latin America with recent ventures into Europe and Asia. Best known for its Black & Decker, Stanley, and DeWalt brand names, the firm also produces Pfister plumbing products, Kwikset security hardware, SnakeLight flashlights, DustBuster vacuum cleaners, and a variety of electric lawn and garden tools, including edgers and trimmers.
Most of the firm’s products are sold through retailers, with home improvement giants Lowe’s and Home Depot accounting for approximately 10% of the company’s revenues. A limited number of its products are distributed through Wal-Mart. Stanley Black & Decker maintains a small number of reconditioning centers and factory outlets where new and refurbished products are sold directly to the public.
Today, Stanley Black & Decker boasts combined revenues of about $10 billion globally with manufacturing facilities in the United States, Mexico, China, Brazil, and the United Kingdom. Black and Decker products have been targets in the United States because of outsourcing concerns with production shifting from the United States primarily to China throughout the 2000s and early 2010s.
Case Challenges 1. To what degree is Stanley Black & Decker’s success contingent on its distribution through home improvement giants Home Depot and Lowe’s, as well as discount retailers such as Wal-Mart and Target?
2. Is international growth an attractive option for Stanley Black & Decker? Why or why not?
3. Could Stanley Black & Decker experience a backlash from American consumers if it continues to move manufacturing operations abroad, particularly to China?
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