Reference no: EM1387856
Snip-Snap Tools began life as a small steel company at the end of the 19th Century. It was one of the first companies to put carbon into regular iron to create steel. It was strong and flexible. Their first products were fish hooks which were made from the flexible wire that they were able to produce.
Over the years the product portfolio grew to include anything that their operation could think of, such as javelins and railings. Today they focus their operations on the manufacture of tools for the professional, production, and the enthusiastic amateur. Core products include handsaws, drill bits, screwdriver, bowsaws etc.
The tool trade is very complex and competitive. Snip-Snap's main competitor is Acme Tools. They are the market leader in many similar areas of the market.
Analyze your product portfolio using the Boston Matrix.
• Acme is the market leader in handsaws with 40% of the market. Snip-Snap has only 25%. There is little house building and many do-it yourselfers use power tools. However it is still quite profitable.
• Snip-Snap still makes a range of barbed fish hooks which are now banned in some markets.
• Both Acme and Snip-Snap have invested heavily in gardening tools and expect sales to increase in the future since people have more leisure time and a larger disposable income. Snip-Snap has 10% of the new market, and Acme has 15%.
• Snip-Snap has a high share in the new market for sandpaper replacement products. Their Razorside is a steel sandpaper replacement for which they have sole rights. They have 5% of this growing market.
• What about the javelins?
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