Makita's Competitive Strategy Analysis

Makita's competitive strategy involves producing power tools without channel protection, allowing products to be sold at membership clubs with low prices due to capitalizing on Home Centers premises. This strategy gives Makita an advantage over B&D as it avoids preconceived notions and offers reliable and strong products. Meanwhile, Milwaukee plays a significant role as the #2 brand in the Professional Tradesman segment, perceived as high-quality and durable, with premium pricing averaging 10%. The brand's reputation is 91% higher than B&D due to its awareness and reliability.

Question: What is Makita’s competitive strategy and what role does Milwaukee (the #2
brand in the segment) play?
Answer
The public image of Makita was well-established in the Power Tool industry, especially in the
segment of Professional Tradesman. The brand was perceived to a reliable brand, credible and
strong. A distinct advantage was given to Makita over the B&D as it was offered no channel
protection. Therefore, the products were sold at the membership clubs. The customers had an
idea that the brand Makita just produced the power tools and not anything else; therefore they did
not have any preconceived notions or attitudes related to it. Again, Makita got advantage over
B&D as B&D was producing the consumer products like the vacuums. The prices charged by
Makita are low and it is able to offer the products at such low prices because it is able to
capitalize on the Home Centers premises. So, this is the competitive strategy of Makita.
Milwaukee also plays a role here because Makita is the leader in all the product lines that it
operates within the Professional Tradesman segment Milwaukee. It forms 10% of the
Professional Tradesman segment. The brand is perceived to be of high quality by the customers.
It is sold at premium pricing averaging 10%. The preference for Milwaukee is 91% higher over
the B&D because it is regarded as a high quality tool, durable. Also, a large number of people
are aware about this brand and thus the company and most of them agree that it is one of the best
brands available in the market.