Swot Analysis Of Newell Company

Newell Company: Corporate Strategy

Newell Company has an advantage by following there company’s mission and philosophy. The philosophy is “Build on what we do best” started by CEO Dan Ferguson. Newell focuses on selling multiproduct to large mass retailers with high-volume and low-cost. Their mission is “Newell is a manufacturer and full-service marketer of consumer products for serving the needs of volume purchasers.” One of Newell’s main strategies is serving the mass retailer. The strategy of acquiring new businesses helps to improve manufacturing processes in order to get high-volume and low cost product. It can create corporate advantages in the industry. Newell strategy is that “merchandise a multi-product offering of brand-name staple

But with negative feedback of Rubbermaid’s customers, Rubbermaid’s strategy of customer services did not alignment with Newell’s mission. The basic strategy that lead to a negative influence on shareholder satisfactions. Even though Calphalon’s competitor Meyer have the lower price than Calphalon. Caphalon wanted to be for the younger and more fashion-oriented market. Newell is unable to match the cost structure of the firms operating with less overhead and fewer product lines. According to the Newell acquision experience, Newell’s strategy is to acquire and integrate business that is non-fashion product to acquire the company for the fashion-oriented market is Acquisition Newell’s strategy was to grow and expand their product line. The company is focused on more acquisition strategy than grass roots growth. Newell acquired different companies in the basics home and hardware products. Acquisition can create shareholder value as well because two companies together are more valuable than two separate companies. 2 plus 2 is not 4 but it should be more then

It creates complement capabilities which two different abilities of the companies that fit well together. Newell is able to offer differentiated products of the same category to suit different customers. They also transferred the technology to the acquired companies. Newell has a technology advance such as consistent deliveries. The company is able to deliver products according to retailer’s request improving its reputation as a “Good Shipper”. After acquisition, Newell transfers its technology to acquiring companies in order to deliver the products in the most efficient way. Acquiring companies learn new technologies from Newell and they both are able to develop the process. The company put through a process of streamline as known as “Newellization”. Growth through acquisition is extremely profitable to Newell’s corporate strategy. Newellizaiton is the process of streamlining that focuses on operational efficiency and profitability. Newell got the opportunity to gain market share through the distribution channel from its subsidiaries. Acquisition of Corning’s housewares business in Europe helped Newell to expand its distribution to gain greater market share in the global market. There are three categories to implement Newellization, first integrated financial system, second sales and order-processing system, third is flexible manufacturing