Newell Case Analysis

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Newell case analysis Newell wants to begin a new phase of development of the corporate strategy. The new strategy is aimed at the corporate growth by means of the spreading of the company on the no-mass markets where the products haven't yet reached the critical mass and where the market power of the most important retailers isn't present and which for the company contributes to 40% of the total sales. The aim of the corporation is that of adding something more than (exclusiveness and innovation) to the product packet already held by Newell focusing however on core products. What's more according to the CEO the strategy of corporate growth would allow the company to reach the 10 billion dollar target of capitalization necessary to increase the value of shares. The company seems to have pinpointed in Caphalon and in Rubbermaid two potential acquisitions capable of allowing the realization of the mentioned strategy. CAPHALON Caphalon would create value for Newell spreading its presence on the no-mass markets, allowing Newell to offer a high value product with strong brand awareness without cannibalizing the market of cookware present on the mass-market (WearEver). With Caphalon Newell corporation would find a space on the untapped markets where products haven't reached the critical mass. In fact while most of the products sold by Newell are bought for utilitarian reasons those of Caphalon stimulate the final users emotionally. The company policy of Caphalon is that of offering a qualified sales force and giving the consumer a high level of service. Newell could exploit this capacity to protect its share on the market from low cost competitors. As for manufacturing, Newell has the necessary know-how and by buying Caphalon there would be an increase of economy of scope and a value chain sharing. Newell in fact already owns a line of high level products sold

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