SKIL CORPORATION

Skil Corporation

Skil Corporation

Introduction

Skill Corporation is an American company that was founded in early 1920s in Chicago. Initially they were manufacturing 'Circular Saw', but gradually they expanded to manufacture the power tools, Skil had an attractive history of inventing new products within the same industry and they were highly focused on manufacturing the power tools, they kept on introducing new products in the market. They focused on the industry and in their early age they first invented the 'Cordless Drill', then the first portable electric saw and then 'Electric Hedge Trimmer' for the consumers. Skil journey was remarkable, Skil entered into the Canadian market in 1946. In the early 1950s they invented 'Roto Hammer' to retain their customer through their quality products and innovation was the strategy at that point of time. Later on to hold the manufacturing they sold their patents to Hilti Company, they supported them in raising the cash, in late 1960s the company focused on manufacturing low price power tools for the normal consumers. Meanwhile, they kept on expanding their business in Australia and Europe and Latin America. The company introduced with their new product called Electronic Switch and formed a new company that was known to be 'Capas' in Netherlands. The motive of the formation was to produce and supply the Skil's power tools product in the local market of Netherlands.

It was seen that several of Skil's competitors were using the technology and increasing the competition in the power tool industry, overall the Capas was enjoying high profits. Whereas Skil's overall financial position was not favouring the results of profitability margins as they were losing their share in the market.

Skil Corporation was acquired by the Emerson Electric Company on Mach 23rd, 1979. Emerson was the main manufacturer of portable power tools and they were having the sales of about $2.6 billion in the year 1979, they were the manufacturer for $58 million of portable power tools. The company had a broad range of electronic and electrical products and systems.

Discussion

Company Analysis

Goals

Company's goal was to become the best producer of the power tools in the business of electrical and electronic market. They were highly focused on manufacturing the best and the most suitable cost products in the market. They had goals of increasing their sales at the rate of 15 percent annually, and they tend to double their earnings by the end of 1981. They value the cost over profits.

Focus

Company's main focus on growing in the portable electric power tools industry, by accruing the majority of portable and stationary tools, they focused on stationary tools that could run through air, gasoline and electricity. They were having the wide range of products with respect to the price, quality, size and range. The use and the sales of cordless tools were at the peak in 1979. Company cater the professional market such as metal working, wood working and auto motive repair companies. Company planned through the time management strategy that means it was estimated that they take around 2 to ...