External Factors: * Top 3 manufacturers offered broad product lines at approx. 175 sku’s each * Since its entry in the P-T, Makita had staked out leadership positions in virtually all products and distribution types * P-T shares: Makita 50%, Milwaukee 10%, BD 9%, Ryobi 9%, Skil 5%, Craftsman 5%, Porter Cable 5%, Bosch 3% * “you just have to stay away from that BD” * Some people viewed BD as home use rather than on the job * There had been instances of BD product designed for at home use being subjected to demands of the job site and failing * Typical tradesmen working in residential construction had about $3000 invested in about 10 or so tools * Spend an average $1000 per year on replacements
Competitive Analysis * “I give Makita 10 ft of space I give you 10 ft of space. They outsell you 8 to 1.” * Makita Electric of Japan had practically taken over the professional power tools for tradesmen business. Late 1990s Makitas success in P-T segment was such that it held 80% in cordless drills, 50% share overall. * Survey showed BD’s brand strength ranking #7 in the US and #19 in Europe * 1990: portable power tools in the US was a $1.5 bil. Market * BD brand power tools held nearly a 30% share of the US market overall * Knowledgeable decision makers viewed BD offering high quality products and