Lincoln Electric 's Business Model

1648 WordsNov 20, 20147 Pages
1 Introduction Headquartered in Cleveland Ohio, Lincoln electric’s business model consists of distributing welding consumables, equipment’s and solutions. Lincoln initially traded electric motor cars and steadily moved on to welding. Lincoln’s vision, led by founder John C. Lincoln is to provide high quality welding, joining and cutting equipment’s globally. 2 Findings 2.1 Strategy Lincoln designs, develops and manufactures arc welding products, robotic arc welding systems, fume extraction equipment and plasma and oxy-fuel cutting equipment. As a result the organisation fragments into 5 geographic segments. 2.1.1 Operating segments The purpose is to enhance operation of worldwide resources and global end markets and sourcing initiatives. Lincoln’s operating segments; are The North America welding, Europe welding, the Harris products group, Asia pacific welding and South America welding (marketline, 2014). 2.1.1.1 Segments adding value The results In FY2013 were, the North America welding segment contributed to 57.9% of overall revenue, Europe welding segment (15.1%), Harris product group (10.8%), Asia Pacific welding segment (9.3%) and South America welding (6.9%) (marketline, 2014). Well balanced revenue streams reduced risks by increasing revenue and providing cross-selling opportunities in all segments; satisfying stakeholders such as management, employees, shareholders and governments. 3 Inimitable 3.1.1 Economy and Opportunity The great recession in 2009 meant
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