Leatherman Tools Brand Analysis - Essay Example

A majority of the stainless-steel tools produced by Leatherman are a combination of blades, pliers, files, pruners, and screwdrivers with some sets having corkscrews. One of the major advantages of Leatherman’s products is the 25-year guarantee (Hoovers). The Argentum, a tool designed by an Argentine silversmith called Adrian Pallarols is manufactured by the company specifically to attract the luxurious community while the younger generation is targeted via the manufacturing of the compact Juice tool.

The Company has its principal strength is the duration of the guarantee offered for its products (25 years). Not many organizations offer such a warranty thus making their products the best. The organization provides its customers with sufficient support or backup and awareness of the products they sell hence keeping the customers coming back for more products. The organization has a dedicated staff that adds up to its minimized price offers for its products. In addition, all parts of the tools made by the company are replaceable (SHOT).

Concerning the Company’s weaknesses, it manufactures customized tools (SHOT). These tools demand increased payment as compared to normal products hence their low production due to the inability to stabilize/moderate the prices of the same.

The large range of tools produced by the company accompanied by a list of styles in which to fold pocket tools and the long warranty offered by the company provides the organization with a huge opportunity of capturing or reaching a larger market (Davis). Furthermore, Davis believes that the use of websites for the presentation of company products presents an opportunity to expand their market share due to the augmenting use of the internet. Manufacturing the compact Juice tool for the younger generation as well as the Argentum for the rich/luxury creates room for increased sales and thus more profit.

Leatherman Tool Group, Inc. is not the only company in the industry; hence, stiff competition from companies like Victorinox Swiss Army, Inc poses a huge threat to the company. Another threat is infringement, especially in cases of retaliatory damages involving the use of these products (Davis). One of the competitors is Victorinox Swiss Army, Inc. Just until 2007, the company was called Swiss Army Brands boasting a monopoly in the marketing of the Victorinox Swiss Army knife in the Caribbean, USA, and Canada (Hoovers). In addition, the company distributes Victorinox wear for men, consumers, and professional Victorinox Cutlery, Swiss Air Force watches as well as products of the Swiss Army Brand like writing materials, watches, and sunglasses. The company runs a flagship retail store in the SoHo district of New York City as well as distributing these products at retail and wholesale prices.

The other is Wenger North America or simply Wenger N.A. distributes Swiss Army knives, footwear, watches, luggage, business accouterments, and outdoor gear to the US and the Caribbean. Hoovers affirms that the Swiss Army knives distributed by Wenger N.A. are not associated in any way with Victorinox Swiss Army knives. The company provides these products on its website but at a discounted rate as well as provides customers with videos and manuals as guidelines for the use of their products. Most of these products are sold in chains and a host of specialty sports retailers (Hoovers). Buck Knives Inc. as the third largest competitor boasts skills that comprise four generations in the knife-making business. The company manufactures hunting, pocket, and fishing knives as well as a host of other cutlery for sportsmen, hunters, the military of the US, and others. The company was founded in 1902 by his father, Chuck T. Buck, and his son C.J. the current president and CEO respectively. The company moved to Idaho in 2005 where a four-and-a-half acre piece of land holds the Buck knives factory (Report Linker).

Leatherman products include pocket tools, multi-tools, knives, and other accessories. By 2018, Report Linker believes that the world market for hand tools and accessories will be $28 billion thanks to the growing automotive industry and the increased demand for residential areas by the rapidly growing population in India and China. In addition, Report Linker reveals that the US accounts for the biggest regional market globally due to the rebound in the residential housing sector. This is supported by the new housing program that is likely to push the demand for hand tools in the country (Report Linker).

The growth of the existing markets and new potential markets described above creates a new and ideal market for Leatherman tools to excel in the highly competitive market. Furthermore, Leatherman products are more valuable and durable and a multitude of them contain multi-tools as well as provide customers with the longest guarantee period of 25 years that no other competitor brand offers to make it the best choice for hand tools in the market.