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    Skil Case Discussion On Video: (Some Points That Came Up)

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    The document discusses SKIL's strategy challenges and changes. It notes that SKIL had traditionally been engineering-focused rather than market-oriented. It recommends that SKIL trim its product line, differentiate from Black & Decker by targeting sophisticated consumers, and focus on narrower distribution channels. SKIL's new strategy included streamlining distribution channels, reducing its product line through standardization, decreasing the number of plants but increasing production volume per plant, and adopting just-in-time manufacturing practices.

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    Skil Case Discussion On Video: (Some Points That Came Up)

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    falconsgroup
    54 views6 pages
    The document discusses SKIL's strategy challenges and changes. It notes that SKIL had traditionally been engineering-focused rather than market-oriented. It recommends that SKIL trim its product line, differentiate from Black & Decker by targeting sophisticated consumers, and focus on narrower distribution channels. SKIL's new strategy included streamlining distribution channels, reducing its product line through standardization, decreasing the number of plants but increasing production volume per plant, and adopting just-in-time manufacturing practices.

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    The document discusses SKIL's strategy challenges and changes. It notes that SKIL had traditionally been engineering-focused rather than market-oriented. It recommends that SKIL trim its product line, differentiate from Black & Decker by targeting sophisticated consumers, and focus on narrower distribution channels. SKIL's new strategy included streamlining distribution channels, reducing its product line through standardization, decreasing the number of plants but increasing production volume per plant, and adopting just-in-time manufacturing practices.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    54 views6 pages

    Skil Case Discussion On Video: (Some Points That Came Up)

    Uploaded by

    falconsgroup
    The document discusses SKIL's strategy challenges and changes. It notes that SKIL had traditionally been engineering-focused rather than market-oriented. It recommends that SKIL trim its product line, differentiate from Black & Decker by targeting sophisticated consumers, and focus on narrower distribution channels. SKIL's new strategy included streamlining distribution channels, reducing its product line through standardization, decreasing the number of plants but increasing production volume per plant, and adopting just-in-time manufacturing practices.

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    SKIL CASE DISCUSSION ON VIDEO

    (SOME POINTS THAT CAME UP)

    Too many models: cannot achieve economies of scale


    Traditionally engineering oriented, product-driven innovator, not costoriented or market-oriented Traditional approach is PUSH (and not PULL required by mass merchandisers): Not much emphasis on the brand name, advertising, etc. Critical choice: Mass Outlets vs. Traditional

    WHAT COULD BE DONE?


    Trim product line, differentiate from Black & Decker. Build on image of SKIL through advertising, professional image, target at the upscale sophisticated consumer Avoid channel conflict. Focus on a narrower range of channels; may result in the loss of some business; but likely to do better in the remaining Hardware stores have higher costs, more dependent on margins, weakness of B&D. Take advantage of that. B&D is committed to a wide line, more so than SKIL due to their PULL strategy. They have to take advantage of market economies. Why not take advantage of SKILs smallness and focus on some specific channels But should SKIL trim so sharply as to limit itself to circular saws?: Trade-off General need to redesign & standardize; decrease number of products & product families

    SKILS NEW STRATEGY


    Decreased number of distribution channels -- streamlined sales force and production -- enlisted support of hardware stores, home centers, etc. Moved from stuck in the middle to FOCUS COST -- reduced product line -- redesigned/product families: STANDARDIZATION -- decreased number of parts on each machine -- global models Decreased no. of plants; increased volume per plant More vol. Per model, more automation, vertical integration

    Made automation flexible, more models/production line


    Just-in-Time philosophy; reduced inventories

    INTERVIEW WITH PRESIDENT OF SKIL BILL DAVIS


    Patience is important, you need time If you change strategy too frequently, you will not get there Be ready for culture shock Strategic health vs. Financial Health Keep track of customer needs, what channels are doing, etc. May need to change distribution positioning over time Be ready for the responses of competitors Know what you are and be the best in that

    SKIL CORPORATION LESSONS


    Dont imitate: Choose new positioning
    Focus on target

    Make tough choices: Dare to trade-off

    SKIL CORPORATION CONCLUSONS


    Create a formal process
    Use a multifunctional team

    Communicate strategy: inside and outside your organization


    Be consistent over time

    Use proper measurement


    Test strategy continually: no company actually masters strategy

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