What’s Stanley Black & Decker’s Market Position?

Stanley Black & Decker (SWK) is a global leader in the tools and storage segment and thus the world’s largest tool company. The company has a 15% market share globally and has increased its market share every year since 2010. Given the fragmented nature of the industry, the company’s 5% lead over Bosch (BSWQY), its immediate competitor in second place, can be considered hefty. This is evident as market shares drop to low single digits as we move further down the ranks of market share positions. Among major competitors in the US, Snap-on (SNA), Hilti, and Hitachi (HTHIY) have market shares of 6%, 5%, and 3%, respectively.

Stanley Black & Decker (SWK) derives 53% of its Tools and Storage business from the US, 20% from Europe, and 18% from emerging markets. As seen in the illustration, the company has the number one market position in North America and Europe, which drives around three-quarters of its business. Among major emerging markets, the company has the number two market position in India and the number three position in China.

In end market terms, the company derives 80% of its Tools & Storage sales from the construction industry (XHB). The industrial (XLI) and automotive industries make up 11% and 6% of segment sales, respectively.

Stanley Black & Decker (SWK) has a stupendous record of launching at least 1,000 products every year at an average of three products a day. Close to 100 of those new products have features that have never been launched by any firm. The company even has a special-forces breakthrough innovation team modelled on the characteristics of the Silicon Valley start-ups. The team is entrusted with the responsibility of executing disruptive ideas through rapid experimentation and accelerated prototyping to create market leading innovations. Thus, it is fitting that Stanley Black & Decker comes in eighth place for the world’s most innovative consumer durables companies.