Industry Analysis
The barrier is not very high to enter the same industry which Newell belongs to, as long as you can manufacture household products and ship them to the retailers, but since there are lots of substitutions for buyers to choose from, in other words, the competition is high and the bargaining power of the buyer is very strong in this industry, it won’t be easy to make profit and keep on growing.
Value Chain Analysis
Basing on the value chain, Newell has strong support activities and competitive advantages on primary activities.
Support activities
Infrastructure:
By using the term which called “Newellization”, Newell has a lean, efficiency and discipline company infrastructure. After acquiring a new company, Newell can make it becomes as efficient as other acquired companies in a short period of time. By keep on having these kinds of consolidations and integrations, Newell builds divisions with economies of scale. Newell also asked each division of the company to place primary emphasis on its own profit performance, which can make each division to provide better customer services.
Human resource:
Newell rewards its workers by rewarding individuals on the basis of their positions and the size of their divisions. Newell gives its employees a base salary equals to industry average, but depends on the employees’ performances; Newell provides stock options or huge amount of bonuses to its employees. This kind of rewarding system could definitely motivate Newell’s employees.
There are lots of transfers and promotions between division mangers of Newell, the advantage of doing this kind of transfers and promotions is, for employees, they would see this kind of transfers as another kind of rewards; and for company, by askin ...