Project Description
Issue
- Slow growth and low profit margins (< 3%)
- Losing market share to Japanese power tool companies
- Not positioned in new “box store” distribution
- Products out of date and not competitive with user requirements
- Ill-advised recent purchase of GE’s small appliance division
Solution
- Oversaw the development of DEWALT, the most significant new power tool brand in 50 years
- Sued the Japanese for “dumping” in the International Trade Commission
- Cut overhead spending by over 30%
- Restructured management and refocused on marketing and product development
- Recruited more than two dozen new engineering and marketing managers
- Revitalized product ranges to compete with Japanese brands
Result — Business Transformation
- DEWALT became a $500M brand in 5 years
- Home Depot and Lowes became two largest customers
- Named one of the “Top US marketers” by Advertising Age in 1994
- Black & Decker Power Tools grew by double digits, compounded, from 1992-1996
- 12% operating profit margins from less than 3%