Newell Strategy

Rubbermaid has not been performing well despite two rounds of restructuring. Costs were reduced, but analysts wanted to see unit volume growth that will push up profits. At the same time, customers were complaining that Rubbermaid does not provide adequate supply of their products and no prompt shipping. Upon the acquisition by Newell, Rubbermaid's problem of being lousy shippers and not being able to meet service requirements will be reduced. Newell is well-known for its prompt and efficient shipping and ability to meet retailers demand. Other than the ability of reducing costs through centralization of many of its administrative functions, Rubbermaid will also be able to gain more power over the major retailers through Newell's efficient distribution system and thus command higher prices over Rubbermaid's competitors.…