High Tech Industry and Power Tools Industry Analysis

High Tech Industry & Power Tools

Strategic Issues and Case Analysis

Don't use plagiarized sources. Get Your Custom Essay on
High Tech Industry and Power Tools Industry Analysis
Just from $13/Page
Order Essay

High Tech Industry and Power Tools Industry Analysis

Both the high tech electronics and power tool industries are heavily reliant on their supply chains, innovation practices and processes, and distribution channels for stability and growth. The intent of this analysis is to evaluate each of these industries from their legal, social and economic environments, management structure, operational and financial issues and the impact of strategic change factors on the structure of each industry as well. Included are extensive analyses of their five-year revenue projections. Both industries face significant challenges in growing beyond their traditional markets, and the use of social networking technologies holds potential for that growth. Finally, this analysis evaluates how the factors mentioned are reorienting the value chains of each industry and forcing greater levels of customer-driven innovation and supply chain performance as a result.


The intent of this analysis is to evaluate the similarities and differences of the high tech electronics and power tools industries. Using the dimensions of their legal, social, and economic environments, management structures, operational and financial issues and the impact of potential change factors on these industries, they are compared and contrasted to each other in this analysis. The strategic intent of the dominant members of these industries is also illustrated in this analysis.

Industry Research

Legal, Social, and Economic Environments

Both the high tech and power tools manufacturing industries are going through a very turbulent time right now as their cost structures are being redefined by global competition, their supply chains under increasing scrutiny for compliance to environmental standards (Casella, 2010), and the global recession drastically reducing the availability of capital for expansion. The impact of cost reductions and greater skill sets being available in China for high tech manufacturing is re-orienting the entire industry’s value chain (Albrecht, Morgenstern, Xia, 2008) and the same is happening with the shift of tools production to India (Dangayach, Deshmukh, 2006). As the value chains of these industries drastically change, there will need to be more focus than ever on environmental compliance globally including the WEEE and RoHS standards (Casella, 2010) and product quality standards including ISO 9002 (Williams, 2004). This has become the greatest legal risk to both industries as each manufacturer varies in terms of their ability to manage the exporting and enforcement of their quality standards into the nations where the majority of production is migrating today.

Management Structure

The management structures of each of these industries vary significant as each has a drastically different approach to managing the innovation, product development, production, service and distribution channel aspects of their businesses. The innovation process that initiates the new product development cycles in tends to be more global in scope and oriented towards demographic segments (Graber, 1996) while innovation in high tech tends to be more insular and focused on technological gains over time (Tsai, Chang, 2008). These differences in how each approach innovation have a strong impact on the management structures of each industry. As innovation is more outward centric in tools manufacturing, the organizational structures are hierarchical and more concentrated on managing very specific product lines, functions, and services. In high tech as innovation is much more generated within an organization, the structure is flatter, wider, with more emphasis on cross-functional teams to ensure that expertise is shared throughout organizations’ structure. The wider and flatter organizational structure of high tech firms also lead to smaller, highly concentrated teams spinning off onto special projects as expertise can be quickly re-assigned. In the case of tool manufacturers, the processes that lead to the development of new products is more externally based, often including channel partners, resellers, and construction companies using their products.

Operational and Financial Issues

In 2009, the machine tools industry experienced negative growth as the combination of tightening credit slowed new production and construction companies found it difficult to get credit to purchase new equipment. As a result, industry-wide sales dropped 2.4%. Inventory turns contracted at a rate of 15% in the high tech industry and across the consumer electronics sector, price reductions and bundling were commonplace as consumable incomes plummeted in 2009. Operationally for both industries, 2009 was however, an excellent year as manufacturers in each retrenched and sought out initiatives to make their operations more efficient, lean, and focused on customers. For the high tech industry, the focus on quality management and attaining higher-levels of quality in their manufacturing operations were critical if they were going to be able to sell into Europe (Casella, 2010).

Impact of Potential Change Factors

The potential change factors that both industries share is offshore production that is drastically re-shaping their value chains while also changing the structure of many industry participants from a supply chain standpoint. The outsourcing of tool manufacturing to India is forcing investment in quality management and compliance (Dangayach, Deshmukh, 2006) while in the high tech industry the change factors of Chinese manufacturing (Albrecht, Morgenstern, Xia, 2008) is changing the cost structures of the high tech industry and product lifecycles. The change factor of regulatory compliance to sell into Europe and global markets with tighter environmental restrictions than the U.S. is also re-ordering both industries.

An Analysis of Strategic Intent

The strategic intent of the power tools industry is to concentrate on the construction industry and generate stable sales through the Original Equipment Manufacturer (OEM) market, where profitability and sales levels are consistently high. For the retail sector of the power tools industry, the focus on new product development through customer listening and voice of the customer programs is critical. For the high tech industry the strategic intent is to capitalize on the speed of product lifecycles and generate create inventory turns as the economy improves (Dangayach, Deshmukh, 2006).

Future Performance Projections

The following two tables illustrate the revenue growth, industry value-add, enterprises and employment in the high tech (semiconductor segment specific) and the power tools industries.

Both analyses reflect the relative slow growth of these two industries going forward. The combined factors to a global economic slow-down, the development of production centers outside the U.S. And the impact that is having on industry value chain dynamics including prices and the intensity of focus on new product introduction speed and time-to-market are reflected in the relatively flat growth of each industry.

Social and External Challenges

The impact of social networks and the platform they have provided consumers to comment and in many cases comment on quickly the directions and strategies of manufacturers (Bernoff, Li, 2008) is a powerful force on each customer facing process in the high tech and power tool industries as well. The social challenges of greater accountability and transparency is critical, as is the need for offering to participate in social media to stay connected with customers. There is a new level of participation required of manufacturers each industry. They must address their consumers, channel partners, major account and OEM partners as peers and partners if they are to survive and grow in this era of extreme transparency where trust, not price, is the king of transactions.

Conclusions and Recommendations

As both industries are going through a transformation of their value chains, both need to seek out stability of pricing, supplier quality and manufacturing process control. Quality must become the differentiator in power tool production, especially with manufacturing shifting to China. The need to make quality the center of high tech manufacturing is also evident in how extensively Apple is using contract manufacturing in China for the iPhone today. The reliance on just price will force both industries into a shakeout and contraction, even more severe than that brought on by the recession. Instead, the industry needs to stabilize and concentrate on quality first, differentiate by adding value in channels with greater reliance on electronic platforms to serve channel partners, reseller and OEM accounts. If both industries are to stability their losses, they must also concentrate on product lifecycles that are more attuned to the needs of user and less driven by supplier availability of parts or worse yet, supplier product line decisions. Manufacturers need to take ownership of the customer relationship as well, as social network are revolutionizing these industries with greater transparency and the requirement of great honesty than ever before.


Albrecht, S., Morgenstern, I., & Xia, X.. (2008). The cost of going global for China’s high-tech companies. The McKinsey Quarterly,(3), 8.

Bernoff, J., & Li, C.. (2008). Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review, 49(3), 36-42.

Casella, M.. (2010). UK Environmental Regulation. Risk Management, 57(3), 20-21.

GS Dangayach, & SG Deshmukh. (2006). An exploratory study of manufacturing strategy practices of machinery manufacturing companies in India. Omega, 34(3), 254-273.

Graber, Don R. (1996). How to manage a global product development process. Industrial Marketing Management, 25(6), 483-489.

Tsai, K., & Chang, H. (2008). The Contingent Value of Inward Technology Licensing on the Performance of Small High-Technology Firms. Emerging Markets, Finance & Trade, 44(4), 88.

Joseph a Williams. (2004). The Impact of Motivating Factors on Implementation of ISO 9001: 2000 Registration Process. Management Research News, 27(1/2), 74-84.

What Will You Get?

We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.

Premium Quality

Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.

Experienced Writers

Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.

On-Time Delivery

Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.

24/7 Customer Support

Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.

Complete Confidentiality

Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.

Authentic Sources

We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.

Moneyback Guarantee

Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.

Order Tracking

You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.


Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.

Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.


Trusted Partner of 9650+ Students for Writing

From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.

Preferred Writer

Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.

Grammar Check Report

Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.

One Page Summary

You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.

Plagiarism Report

You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.

Free Features $66FREE

  • Most Qualified Writer $10FREE
  • Plagiarism Scan Report $10FREE
  • Unlimited Revisions $08FREE
  • Paper Formatting $05FREE
  • Cover Page $05FREE
  • Referencing & Bibliography $10FREE
  • Dedicated User Area $08FREE
  • 24/7 Order Tracking $05FREE
  • Periodic Email Alerts $05FREE

Our Services

Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.

  • On-time Delivery
  • 24/7 Order Tracking
  • Access to Authentic Sources
Academic Writing

We create perfect papers according to the guidelines.

Professional Editing

We seamlessly edit out errors from your papers.

Thorough Proofreading

We thoroughly read your final draft to identify errors.


Delegate Your Challenging Writing Tasks to Experienced Professionals

Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!

Check Out Our Sample Work

Dedication. Quality. Commitment. Punctuality

All samples
Thesis/Thesis chapter
Research paper
Essay (any type)
creating a Code of Conduct
View this sample
Research paper
Week 1 Journal Assignment
Undergrad. (yrs 3-4)
Human Resources Management (HRM)
View this sample
Research paper
Cultural Intelligence Presentation
View this sample
Research paper
Communicable Disease
View this sample
Research paper
Mental health
View this sample
Essay (any type)
Personalized Glossary of Research and Assessment Terms
View this sample

It May Not Be Much, but It’s Honest Work!

Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.


Happy Clients


Words Written This Week


Ongoing Orders


Customer Satisfaction Rate

Process as Fine as Brewed Coffee

We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.

See How We Helped 9000+ Students Achieve Success


We Analyze Your Problem and Offer Customized Writing

We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.

  • Clear elicitation of your requirements.
  • Customized writing as per your needs.

We Mirror Your Guidelines to Deliver Quality Services

We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.

  • Proactive analysis of your writing.
  • Active communication to understand requirements.

We Handle Your Writing Tasks to Ensure Excellent Grades

We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.

  • Thorough research and analysis for every order.
  • Deliverance of reliable writing service to improve your grades.
Place an Order Start Chat Now