Forcasting Stratigy for Power Tool Industry Essay

Forcasting Stratigy for Power Tool Industry - Essay Example The strategies of the company to drive themselves in to future success are; Innovation, Structural Cost Improvements, Cash Generation and Stewardship of Capital. The 'Innovation to end-users' was the critical strategy for this company. The company's 'new-product machine' was the innovative solution of the company which enabled them to achieve extremely loyal end-users as well as benefited their distribution partners to serve a broad range of channels. The company's product vitality index remains above 35 percent. While reducing costs of manufacturing and selling and general administration costs filled the cost improvement and cash generation strategies, the acquiring of Vector products Inc manufacturing consumer power portable products and the buyback of the shares represented their strategy of stewardship of capital. (Black & Decker 2006 Annual Report) This company places its strength on the industry leadership in battery and charger technology with its LXT Lithium-Ion battery and charger system. The first cordless drill was introduced by the company nearly 30 years ago. Manufacturing innovative cordless tools with designs to allow the users all the convenience cordless offers without sacrificing the power or efficiency of a corded tool is the key strategy for this company. The advancement achieved in motor technology is also another key strength. (Makita web site) 2.3 Bosch: With over 1000 different products this company offers a broad product range catering to the building trade, industry and do-it-yourselfers. Wide product range is the key strength of this company. The company has also made its presence felt in the cordless power tools with its products like cordless screw drivers, piercing saws and hammer drills. The long-term strategy of Bosch is to generate approximately half of their sales in the Americas and Asia and the other half in the European market. Diversification is the central theme of the strategic objective of Bosch to make the company less vulnerable to fluctuations in individual industries. (Bosch Home Page) 2.4 Porter Cable The key strength of Porter cable is their range of products which meets different range of customers. They manufacture tools for every customer; new home construction to building maintenance and from farms to major wood-working. Similarly they supply to all classes of customers from professionals to casual weekenders. Power, agility, responsiveness and perfect performance is at the root of the porter cable's product strength. With a view to take the strategic advantage of marketing, Pentair Inc the owner of Porter Cable tools had agreed to sell all its tools brands to Black & Decker. (Porter Cable Home page) 3.0 Developing a Strategic Forecasting for Able Corporation: There can be no strategic planning without forecasting. The ultimate objective of strategic planning is to determine what the company should be in the future; what markets to compete in, with what products, to be successful and grow. To answer these