What is the relationship between the core competencies of the company that you are researching for your project, the core competencies this company feels it needs, and the decisions that company makes to form cooperative strategies? Please be sure to cite and reference the text and any other sources that you use.

Reply :The core competency of Newell Brands is that it focuses on high volume, low cost product catered to mass retailers. Newell Brands acquired companies that were mostly underperforming and suffering from high cost such as Rubbermaid and Sistema in New Zealand and put them through a process of streamlining, with a focus on operational efficiency and profitability to align these companies into Newell’s own cost structure and process in less than 18 months. This ensures that the companies acquired by Newell performs efficiently in the business process. By taking this step, it enables Newell to introduce more modern methods of production for the acquired companies. (Newell, 2020).

Newell Brands uses the process of Newalization, which is a cooperative strategy to form partnership with other companies to enhance its presence in the global market. This process provides Newell with an opportunity to gain additional market share in key distribution channels. The companies emphasize on firms with high brand awareness and a low cost structure which is often the process of Newalization that creates an offering in the market which will be difficult for their competitors to imitate (Deepak, 2013).

Another way that Newell forms a relationship with other companies is by acquisition. Newell acquires small businesses to round out their existing product lines and consolidate industry capacity. Newell performs acquisition with companies such as Rubbermaid, and Sistema that has brand names of staple products that enables the company to get more shelf space and secure its importance to retailers. (Newell, 2013)

Moreover, the change in management style from functional to divisional had been beneficial to the company and the use of synergies also proved as an effective method to enhance its performance. Being also perfect at processing and delivering customers orders, Newell had some bargaining powers which there competitors were lacking. For example, the 2%-30-net-45 payment agreements gave Newell a competitive advantage ahead of its competitors. Furthermore, Newell also kept a high level of differentiation. This can be seen in its business which were separated into three divisions: Hardware/home furnishing, office products and housewares. These divisions accounted for 46%, 28% and 26% of the company’s revenues in 1997. ( Newell Brands 1997).

In conclusion, the relationship between the core competencies that Newell Brands possesses, the core competencies that it feels its needs and the decisions to form cooperative strategies with other firms is earning an above average return, be successful and create a competitive advantage. By coming together, each firm that Newell has a cooperative agreement with or has acquired brings its own unique core competencies and this will drive them to become stronger because these firms will in turn complement each other. For example, by acquiring Rubbermaid and Sistema, it enables Newell Brand to enter into the European, Australian and even the New Zealand market, likewise, with this deal ,it also enables Sistema to sell its items under the Newell Brand name in the American market. The companies will also be able to design, produce and sell their products to get above average returns. For example, Newell will be able to introduce newer and more modernized products with the help of the design teams at Rubbermaid and Sistema that will be appealing to the buyers in the overseas markets as well as the buyers in the American markets. This will ensure profitability for Newell in the long run. The main relation between all these factors is to create a competitive market and make more revenues for Newell and its partners in the near future.