Case Analysis 3 Questions Case Newell Company Corporate Str

Case Analysis #3 Questions Case - Newell Company: Corporate Strategy

1. What opportunities and threats did Newell face in the late 1990s? Use external analysis tools to provide support for your answer.

2. Did Newell have any sources of competitive advantage in the 1990s? Use internal analysis tools to provide support for your answer.

3. At the time of this case did Newell meet the criteria for effective corporate-level strategy? Why or why not?

4. Should Newell have acquired Calphalon and/or Rubbermaid? Why, or why not? Apply the logic of effective corporate level strategy in your answer.

Solution

What opportunities and threats did Newell face in the late 1990s? Use external analysis tools to provide support for your answer.

Opportunities:

Products and new markets: develop innovative premium products with higher profit margins. Differentiate products by brand and quality

Marketing, Advertising and Branding: Expand marketing and advertising efforts. Leverage creative merchandising promotions.

Strategy: Pursue divestiture of non-aligning business and product rationalization. Consolidate market share through horizontal acquisitions.

Threats

Market Forces: Increasing cost of resin and fuel, economic and housing market downturn.

Increased Competition: Rise of low-priced home good stores in-house brands

Bargaining Power: Lack of product differential for low end brands

Weakening distribution channels

Please submit another question for parts 2, 3 and 4


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