Hilti cut or Fasten?

1339 Words Oct 3rd, 2013 6 Pages
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Hilti: Cut Costs or Hold Fast?
Overview
This case review was executed about a case study that was discussed in class on the operations of Hilti and its surroundings – Hilti is a global corporation based in Lichtenstein that is a market leader in drills, saws and fastening products. The analysis looks at the development of Hilti ever since it was founded, and the different strategies which have been implemented to get them to where they are now. For a company that has been very successful which is now going through a period of recession, with sales decreasing which has been caused by a global financial crisis – a question for the CEO whether to hold fast and risk an investment loss, or cut costs to
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From Porters Five Forces analysis in Appendix 3, it is evident that Hiltis’ surrounding environment is ever-evolving and fast moving and to stay and remain competitive in this field Hilti must keep up and with its research and product development to keep improving with innovation and technology. By staying ahead, continuously evaluating and improving Hitli can outperform competitors within the industry.
Hilti is confronted with the following issues:
Without a stable economy the value created may not be as effective within the industry – See Appendix 1) because if consumers don’t have the financial capacity to spend, then value to the consumer may change.
Hilti must keep up or ahead with the innovation and technology that competitors are using within the industry – by looking at a sales approach from a social media sense, moving into E-business and shop-in-shop) as the current direct sales method is becoming out-dated.
Hilti must look at aligning its Internal and external strategies as the economic crisis caused a decline in sales because customers were not confident to spend during this period (external), for this reason Hilti must work on improving its internal strategies such as HR, R&D, Sales etc
Strategic Options and Recommendations
The misfit gap between Hilti’s internal and external strategies increases over time and this gap needs to be reduced. For this to occur, Hilti must go through a process of strategic

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