In the late 190s, it was a challenging period for Newell Company. By 1997, three chains controlled roughly 80% of the discount retailer market. One of the strategic issues Newell facing is how to address the pressure of the customer buying power increasing. Another strategic issue in the 1990s was the acquisitions of Calphalon and Rubbermaid. These two acquisitions are the major stepping stone for them whether Newell Company has greater global presence and brand recognition in the market. Newell Company has a successful corporate-level strategy for their company growth. They focus on the acquisitions of some successful companies then take the “Newellization” process, reorganizing these companies to expand their market power and increase
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“Newellization” process, EDI system and efficient shipping method are competitive recourses for them. One of the most valuable recourses will be the “Newellization”. Newell company’s strategy is to expand their market and increase the profit margin by acquiring the companies which are top 1 or 2 in market share of their own market field. Newell had the capabilities to use the “Newellization” process to reorganized them to help them earn more shelf space at the mass retailers. Newell main targets is serving the mass retailers, most of the retailers use informational technology in their operation. To become an excellent supplier, Newell invested heavily in the computer and hardware to match their customers’ system. Newell company used the data to schedule the delivery time and allowed the customers to maintain the lowest stock level which brings another advantage is being rare in the industry. Additionally, because of the technology improvement, the top three mass retailers and some others began to providing Newell with nightly point-of-sales data on every product sold in each day, they want to corporate with Newell to lower their inventory stock level, which makes it inimitable since it required a matured EDI system and strong relationships with the
“Newellization” process, EDI system and efficient shipping method are competitive recourses for them. One of the most valuable recourses will be the “Newellization”. Newell company’s strategy is to expand their market and increase the profit margin by acquiring the companies which are top 1 or 2 in market share of their own market field. Newell had the capabilities to use the “Newellization” process to reorganized them to help them earn more shelf space at the mass retailers. Newell main targets is serving the mass retailers, most of the retailers use informational technology in their operation. To become an excellent supplier, Newell invested heavily in the computer and hardware to match their customers’ system. Newell company used the data to schedule the delivery time and allowed the customers to maintain the lowest stock level which brings another advantage is being rare in the industry. Additionally, because of the technology improvement, the top three mass retailers and some others began to providing Newell with nightly point-of-sales data on every product sold in each day, they want to corporate with Newell to lower their inventory stock level, which makes it inimitable since it required a matured EDI system and strong relationships with the