Newell Company: Corporate

Strategy

SWOT Analysis Internal External Strengths Opportunities • Wide product range & depth • Promising future acquisitions • Newellization: Brand Name • Potential International Market • Relationship with discount retailers • Efficient high volume manufacturing • On-time delivery Weakness Threats • Increase in low cost competitors • Declining profitability • Dependency on mass retailers • Low response time • Threats from private labels .

INDUSTRY ANALYSIS (Source: Porter’s Five Forces Model) Competitors with cost advantage from Threat of new offshoring entrants Bargaining Bargaining Incumbent Discount power of power of Rivals Retailers suppliers buyers Threat of substitutes Private Labels .

Newellization Compare income statements Profit improvement & Increase Productivity Cost structure operating margins enhancement problems processes to recognition above 15% integrate acquired product lines Identify ways to reduce costs .

Corporate Strategy Triangle Competitive Advantage Coordination Organization Control .

Calphalon: Newellization Test Positives: • Helps expand – Upscale Retailers • Build expertise in Pull Strategies • Strong connections with end consumer • Prevents WearEver cannibalization Negatives: • Risky shift in strategy • Significant SG&A expenses .

Rubbermaid: Newellization Test Positives: • Accessibility to large shelf-space • Similar distribution channels • Diversification • Demand around the world Negatives: • Large but sick company • Difficult to integrate .