Businessmodel of Masco Corporation

Customer Segments

Masco has a segmented market business model, with customer groups that have slightly different needs. The company targets its offerings at homebuilders and home-owning consumers.

Value Proposition

Masco offers one primary value proposition: brand/status.

The company has established a strong brand due to its success. It is one of the largest manufacturers of products for the home improvement and new home construction markets. Its portfolio includes several prominent brands, including Behr paint; Delta and Hansgrohe faucets, bath, and shower fixtures; KraftMaid and Merillat cabinets; Milgard windows and doors; and HotSpring spas. It is comprised of over 20 companies and has more than 30,000 employees.

Channels

Masco’s main channels are home center retailers, wholesalers, and distributors. The company promotes its offering through its website, social media pages, and advertising.

Customer Relationships

Masco’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Masco’s business model entails designing, developing, manufacturing, and distributing its products to customers.

Key Partners

Masco’s key partners are the suppliers that provide it with the raw materials and components it needs to manufacture its products. These items include hardwood lumber, plywood, particleboard, copper, and zinc.

Key Resources

Masco’s main resources are its physical resources, which include the 60 manufacturing facilities it operates in the United States and the more than 20 it maintains outside the U.S. It also places a high priority on intellectual property, with numerous patents, licenses, and trademarks.

Cost Structure

Masco has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is cost of sales, a variable expense. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

Masco has one revenue stream: revenues it generates from sales of its products to customers.