The first gap is market value. Stanley Black & Decker, Inc. market share is 8.3%, consequently a lot lower than what they would like. Due to a low market share concentration, “the top four players expected to generate 22.2% of total revenue in 2017” (IBIS World). Competitor, Ace Hardware Corp. distributes products that are not related to the industry, justifying a broader product line that consequently assists company’s revenue (IBIS World). With an increasing global revenue of $5.13 billion in 2016, Ace’s development has surpassed the industry's growth, stimulating its market share (Statistica). According to IBIS World, wholesalers must be able to quickly and efficiently deliver construction supplies to customers while incorporating transportation costs. However, with strong business management strategy, and a service-based obligation within a low concentration industry can become strong and profitable quickly (IBIS World). …show more content…
Stanley Black & Decker, Inc. competes with active global competition both smaller and larger companies that provide the same or similar products and services for the same use. These competitors are located in countries such as China, Taiwan, and India where labor and production costs are considerably lower than in the U.S. (10-K). With currency fluctuations, companies like Stanley Black & Decker will face unfavorable changes and will likely increase expenses for the company (SWOT Analysis). Although the company does try to diminish possible market fluctuations in foreign currencies, there is no guarantee for it to be completely eliminated. If the U.S. dollar strengthens compared to other currencies, Stanley Black & Decker’s revenue could be negatively affected. The company needs to respond to competitor’s innovations, alongside maintaining a competitive cost structure in order for them to remain profitable and defend market share