The Stanley/Black and Decker

The Stanley/Black and Decker is a merger that has instrumentally performed for the past 175 years. The company started as a horizontal merger between Frederick Stanley’s shop in Connecticut and Duncan Black and Alonzo’s which was based in Baltimore Maryland. The two companies though having been based in different localities at the time of their establishment were equal competitors. They were in seemingly direct competition because both outlets concentrated in matters of hardware and power tools. There was, therefore, stiff competition between the two organizations though it was not direct competition. The decision to merge was an overdue decision. It was a decision that diversified their business from two local stations to a diversified industrial player. 

The merged company made its decision to establish in Connecticut. It was a decision that could be said to have been in line with the present directives of the Federal Trade Commission. The decision to establish the headquarters in Connecticut did not mean that either of the company was placed at an advantage or not. It was just a decision that was based on the fact that Connecticut looked like the most prime position (“Home Page”, 2019). Again, the engagement is fruitful and has seen the organization enlarge. The Stanley/Black and Decker Company is, therefore, a legal and successful horizontal merger. 

The Stanley/Black and Decker fits into the value proposition market model. The value proposition market model is one of the most critical market models that are used by organizations (Frow & Payne, 2011). It is a market model where an organization uses primary values of increasing the value of their products by use of approaches such as accessibility, innovation, customization of customer products and creating a self-sustaining brand. The value proposition market model is one that is largely functional in that it gives organizations a chance to increase the value of their products and have a command in the market. 

The Stanley/Black and Decker made use the value proposition market model in a number of ways. One is that it created accessibility to a wide range of products which are inclusive of tool solutions, pipeline services and almost every infrastructure product. The company was also successful in embracing innovation as part of their culture which reduced the complexity of performance. The Stanley/Black and Decker is a company that also customizes goods for different customers upon their requests (“Company Stanley Black & Decker | Cleverism.com”, 2019). Lastly, their merger created a lasting brand that has gained such an instrumental influence across the United States and internationally. The market model that is used by the company is, therefore, one that makes such an instrumental observation of increasing the value of the organization’s products.

The Stanley/Black and Decker merger was one that was reached by two organizations that operated in the same product line. Both companies engaged in the production of products that were related to electronics and power (Black, 2016). Though they were not selling exactly the same products, the companies could have been in antitrust of each other, each hoping that the other would not decide to venture into the other. Sometimes antitrust between competitors’ causes the organizations to merge. It, therefore, could have been an issue of antitrust between the two companies. 

However, while approving the merger in 2010, the Federal Trade Commission found nothing wrong with the merger. By application of the antitrust law, the commission is expected to deny approval of mergers where the desire of the merger is to kill fair competition for the benefit of customers (Gilbert & Greene, 2015). The two organizations were however not engaging in a merger because they were in competition. Rather, they engaged in the merger so that each of them would benefit and hence their merger was largely based on their shared goal and not antitrust. 

In the current economic times, The Stanley/Black and Decker is one of the major corporations in the United States that record an articulately high economic performance. It trades high in the New York Stocks Exchange with a current range of (+3.19%) and has since made many acquisitions of small companies such as Tool Works and Delta PEC (“Home Page”, 2019). 

In view of delivery of duties, the organization prides of several brands of tools such as the Stanley, the Craftsman, Vidmir and Facom among others. The organization is one of the greatest toolmakers in the United States with a current customer base around the globe. The merger even when it was not fully approved showed its financial capacity when it sustained its position even in the 2007 economic recession. It is, therefore, an organization that is a successful merger.

The Stanley/Black and Decker is an iconic story of innovation embedded in a merger. The organization was established by people who noted an existing gap in the market which was their unity. Their unity was a strength that ensured recognition around the globe, creation of different brands and a consequent establishment of a healthy organization. The company is also consistently engaging in various fields. The organization also keeps a check on competition using different approaches that have always seen it rise above competition, inside the country and globally.  

References

Black, S. (2016). Market Realist. Retrieved from https://marketrealist.com/2016/04/stanley-security-changing-gears-lock

Company Stanley Black & Decker | Cleverism.com. (2019). Retrieved from https://www.cleverism.com/company/stanley-black-and-decker/

Frow, P., & Payne, A. (2011). A stakeholder perspective of the value proposition concept. European journal of marketing, 45(1/2), 223-240.

Gilbert, R., & Greene, H. (2015). Merging innovation into antitrust agency enforcement of the Clayton Act. George Washington Law Review, 863(6).

Home Page. (2019). Retrieved from https://www.stanleyblackanddecker.com/