Businessmodel of Stanley Black & Decker

Customer Segments

Stanley B&D has a segmented market business model, with customer groups that have slightly different needs. The company targets its offerings at consumers and businesses that need tools.

Value Proposition

Stanley B&D offers four primary value propositions: accessibility, innovation, customization, and brand/status.

The company creates accessibility by providing a wide variety of options. It offers tools, solutions, and services in the following categories: Tools & Storage, Commercial Security, Hospital & Healthcare Services, Fastening Solutions, Infrastructure Products, and Pipeline Services.

The company embraces innovation as a part of its culture. It maintains the Stanley Fulfillment System (SFS), which includes the following cutting-edge systems and processes:

• Sales & Operations Planning (S&OP) – A unified process that links and balances supply and demand in a manner that produces strong fill rates while minimizing DSI (Days Sales of Inventory).
• Operational Lean – The systemic application of lean principles in progressive steps throughout the enterprise to optimize flow toward a pre-defined end state by eliminating waste, increasing efficiency, and driving value.
• Complexity Reduction – A system for eliminating costly and unnecessary complexity from products, supply chain, and back room process and organizations. It enables all other SFS elements and, when successfully deployed, results in lower costs, speed of execution, and customer satisfaction.
• Global Supply Management – A system that leverages the firm’s scale to achieve the best price and payment terms with the best possible quality, service, and delivery among all categories of spend.
• Order-to-Cash Excellence – A process-based approach that provides a user-friendly, automated, and error-proof customer experience from intent-to-purchase to shipping and billing to payment, while minimizing cash collection cycle time and DSO (Days Sales Outstanding).

• Common Platforms – A system for leveraging technology to facilitate integration of acquired firms. Standardized processes and system platforms are used to reduce costs and provide scalability. The company enables customization by incorporating customer feedback. It features a section on its website called “Submit an Idea” that invites visitors to identify ways it can strengthen its products and better deliver products that meet customer needs. It only accepts ideas in the following areas:

• Power Tools (Drill, Sander, Jigsaw, etc.)
• Outdoor Power Equipment (String Trimmer, Lawnmower, Hedge Trimmer, etc.)
• Home Cleaning Products (Hand Held Vacuum, Steam Mop, etc.)
• Hand Tools (Non-Powered Tape, Knife, Wrench, Socket, Hand Saw, Hammer, Pry Bar, Level, etc.)
• Electronic Tools (Apps, Laser Levels, Stud Finders, Laser Distance Measuring, etc.)
• Storage (Toolbox, Mobile Storage, Metal Cabinet, Organizer, Mobile Work Table, etc.) The company has established a powerful brand due to its success. It is the world’s leading provider of tools and storage, the second-largest commercial electronic security company, and a leading provider of engineered fastening systems. It is an S&P 500 and Fortune 500 firm that produces a number of well-known brands, including Stanley, Black + Decker, DeWalt, Porter-Cable, and Powers.

Channels

Stanley B&D’s main channels are retail chains, particularly mass merchants and home centers. The company promotes its offering through its website, social media pages, advertising, and a wide variety of sports sponsorships.

Customer Relationships

Stanley B&D’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees.

Key Activities

Stanley B&D’s business model entails designing, developing, and/or manufacturing tools, systems, and accessories for its customers.

Key Partners

Stanley B&D’s key partners are the suppliers that provide it with the raw materials it needs to manufacture its products. These items include ferrous and non-ferrous metals (steel, zinc, copper, brass, aluminum, and nickel) and resins. The company also purchases components such as batteries, motors, and electronic components, as well as resin-based molded parts from suppliers.

Key Resources

Stanley B&D’s main resources are its human resources, who include the engineers that design, develop, and/or manufacture its products. It maintains important physical resources in the form of facilities used for manufacturing, distribution, and sales in 19 U.S. states and 16 foreign nations. Lastly, it owns several patents and numerous trademarks for its various businesses.

Cost Structure

Stanley B&D 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

Stanley B&D has one revenue stream: revenues it generates from the sale of its products to customers.