Newell Rubber Maid Case Analysis

1. Internal Analysis Newell Company (Commonalities) |

| Housewares | Hardware and Home Furnishing | Office Products |

Products | Everyday household products, Long life cycle, Reliability |

Markets | Male/Females buyer, all socioeconomic strata, Everyday retail outlets |

Strategies | High quality service, Brand recognition, Large amount shelf space |

Operations | Manufacturing, Distribution, Merchandising, Retailer relationships |

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Newell Company Case Analysis

2. Corporate Strategy

A. Leading up to the proposed acquisition of Rubbermaid, Newell’s corporate strategy of growth by acquisition did create a competitive advantage based on the following four reasons:

ai. The Newell Company only targeted businesses that had commonalities and were a strategic fit with their own product lines. Doing so allowed them to gain market share quicker than their competition in the slow growing markets.

aii. Not only did Newell’s acquire companies within the same markets. The companies would be #1 or #2 in their served markets, with brand recognition, and established shelf space with large retailers.

aiii. Newell’s knowledge of production allowed them to increase efficiency of acquired companies. Then streamline their distribution by using their own mass distribution channels.

aiiii. The high quality of service and just in time delivery systems set in place by the Newell Company. Allowed their acquisitions to be smooth and expand the company’s growth potential and sales alike.

B. “Newellization” is a key part of the implementation of Newell’s corporate strategy. To successfully implement “Newellization,” Newell’s acquisition targets needed to demonstrate at least the following three characteristics:

bi. Potential to reach Newell’s standard of profitability, which were operating margins of 15%, and Sales, and General and Administrative costs at a maximum of 15%. So that when Newell Company transferred in their management, they...