Newell Company: Corporate Strategy Harvard Case Solution & Analysis

Newell Company: Corporate Strategy Case Study Solution

Alternatives:

The main concern over the Newell Company is mainly the acquisition of two companies namely Calphal on and Rubbermaid. The better alternative in response to the key issue related to the high product price and the poor product delivery would be:

• The high cost products launched by Rubbermaid is the key issue. For this propose, the strategy of penetration pricing should be considered, beginning with low price and good product quality will attract more customers for building the trust over customer. Gradually, the product price can be increased with respect to the product popularity.
• The second alternative deals with the being less efficient in the product delivery which troubles the customers. Thus, complete reliance on the big retailers is not the best option as the company should also effort in the shipment of its products to the customers and set a specific period of time to them for the delivery of the product in which the company is more comfortable. (See Exhibit 3)

 Recommendation:

For two of the keys issues two alternatives has been under consideration. The best option would be to act on the issue of high price of the products for which the strategy of penetration pricing has been suggested. As it is one of the best key for every organization in the market, because the initial price of the product is low and on the basis of the product popularity among the consumers and as per their needs the company can surely make changes in the price of the product to increase its net income.

Conclusion:

The Newell Company is the leading multinational company with gradual increase in its revenues year on year. The analysis was for the identification of the key issues the company was facing. The issues identified were high cost and the product delivery inefficiency. For both the two issues, alternatives have been suggested among which the penetration strategy of pricing which will benefit in resolving the issue well.

Appendix

Exhibit 1:

Exhibit 2:

Porter’s Five Forces Model:

 Exhibit 3:

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