Sherwin Williams Case Analysis

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Company’s Financial Status Sherwin Williams is number 3 in the 2017 global top 10 paint and coating companies who operate with 4,180 stores in the United States, the Caribbean, and Canada. In addition, they also operate in Latin America with 21 facilities and 339 stores. Sherwin Williams’ total sales in 2016 are reported to be 11.86 billion USD which is a 4.6% increase compared to 2015. There are 4 operating segments the company have: Consumer group, Global Finishes Group, Paint Stores Group, and Latin America Coatings Group. All of this operating segments covers customer segments in more than 100 countries.
Expenses
Considering Sherwin will export to Japan as their mode of entry, we will only open a small office in Japan for mainly for marketing,
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In Japan, the local well known paint companies are Kansai Paint and Nippon Paint (see Competitive Assessment – Foreign Competitors). For a price baseline, we will use semi-gloss paint made by Nippon which cost 10,476 Yen or around 92.21 USD for 15 kg. While Sherwin Williams’s semi-gloss paint cost 62 USD per gallon or 92 USD per 15kg (see Appendix D). Sherwin have a better quality paint compared to Nippon but most people in Japan doesn’t know the brand. In the first 2-3 years, Sherwin should price their product 5-10% lower than their Japanese competitor such as Nippon to establish brand recognition. After people in Japan recognize Sherwin Williams as a quality paint maker, they can slowly increase their price to match the price in the United States plus the additional cost of exporting the product. This method is great for Sherwin to penetrate the paint market in …show more content…
If Sherwin Williams export their products to Japan and they sold as expected, theoretically the stock price will increase considering other things constant. This is good for Sherwin since the shareholders will be happy and it will be easier for the company to issue more stocks since the price of the stocks

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