Newell Company A Corporate Strategy Case Solution

2. Corporate Level Strategy BCG Matrix

• The hardware, home equipment and tools and other related products are considered cash cows for the Newell Company. It means that they have the ability to produce revenues in greater amounts.

• The dogs are the product lines that have a smaller market share and were sold off in 1988.

• Stars are those occupational units that have a large market share in a fast-growing industry, and the company's position has increased through their acquirement.

• Lastly, purchase of Rubbermaid is a question mark for the company as it has cash benefits as well as some downsides. 

3. Corporate Level Strategy Related and Unrelated Diversification

Related diversification states the horizontal diversification and similarly, unrelated diversification is identified as vertical diversification. 

• Vertical growth: It emphases on current customers to create additional purchases of the products and services. 

• Horizontal growth: It includes searching of new consumers to buy present products or services. It efforts on increasing the geographical reach of business.

4. Answers to Questions

i. Does Newell have a successful corporate strategy? 

Newell’s aim is to increase its profitability by presenting a widespread range of products and services to the wholesale channel. Newell has preferred to improve its product line through strategic achievements. The scheme succeeds centered on their two branched methodologies of following a well-known acquisition practice (Newellization) and certifying corporate continuity through the division to maintain its performance in the marketplace. This strategy benefits Newell to expand their range of goods for mass retailers. 

ii. Does the company add value to the business within its portfolio? 

The company enhances the value of its business by adding portfolio through the scheme of Newellization. This permits the brand to be retailed to consumers, which increases customer devotion and loyalty as the brand is known, and specific products are not mislaid to participants. It also assists Newell to grow into a market leader in almost all divisions.

iii. What are Newell’s distinctive resources? 

Newell’s success was qualified to limited unique resources and its power in three broad capabilities. Initially, it did not misplace focus on its objectives of keeping a compact standing with nationwide chains. Thus, it was able to carry on this goal because of its second power that was its business structure. Lastly, it also possessed the technology and skill, in the form of EDI that is more than suitable for the requirements of its retailers.