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Skil Corp

In: Business and Management

Submitted By faye
Words 309
Pages 2
Skil Case Analysis
Introduction
Skil Corporation is a portable power tools manufacturer that was acquired by Emerson Electric Company in 1979. When Skil was first acquired, it had mediocre financial performance. Its main competitors in the portable power tool industry were Black & Decker, Sears, and some Japanese manufacturers. In 1979, the electric power tools were making up the majority of the portable power tool industry.
Practical Applications
The Competitive Environment - The main competitive force for Skil was rivalry among present competitors. Skil and Black & Decker were two competing companies that were the first in the industry to begin using high-strength plastic in their tools, which had lead to great reduction in cost. In 1979, the electric power tool market in the United States made up 37% of the worldwide market ($868 million out of $2,350 million).
In the United States during 1979, mass merchandisers such as Montgomery Ward, and J.C. Penney were the primary sellers of Black & Decker and Skil portable electric power tools. Home centers were a steadily growing channel for professional and consumer power tools, and both professionals and consumers shopped at them. Home centers were growing competition for mass merchandisers, with sales of $83 million in 1979 and growing at 13% annually. In terms of global electric power tool market share, Black & Decker, Makita, Bosche, Hitachi, and Skil ranked the highest in order of share percentage. Black & Decker held approximately 20% more of the market share than each the four competitors beneath it. In the United States, Black & Decker had approximately 40% of total dollar sales, Sears had around 18%, and Skil had around 15%.
Black & Decker – Black & Decker was most known for its consumer drills and professional sander/grinder. Both consumers and professionals liked Black & Decker for its...

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