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The Value Chain Of Kaman Distribution

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In this paper, we will examine the entire value chain that Kaman Distribution, and each of its three platforms, can offer its customers. Kaman Distribution is the larger of two sectors within Kaman Corporation, the smaller being the Aerospace Division. Kaman Corporation is a publicly traded company on the NYSE with the symbol KAMN. Kaman Distribution began as Kaman Industrial Technologies (KIT) in 1945. Kaman Distribution had reported revenue of $1.11 billion for 2016. Kaman has 240 locations across the United States and Puerto Rico, these include local branches, distribution centers, specialty fabrication shops and corporate offices. Compared in size to other distributors of Power Transmission products and services, Kaman is distant…show more content…
Buying other companies is the perfect way to grow market share, by adding new product lines to the catalog, getting exposure to new markets in regions where there was previously no presence and also by adding new business services that enhance the “in house” capabilities of the company. It also adds a new level of expertise from the people who perform the services to the executives that run the company. To fulfill the service and capabilities gap Kaman has been working on a “three-platform strategy” that provides products and services for Power Transmission (PT), Fluid Power (FP) and Automation, Control and Energy (ACE). To make this a reality Kaman has been acquiring companies over the last ten years specifically with the goal of filling in these gaps in order to offer more products and services.
The way to a Buyers heart is Cost Savings. It isn’t always possible to lower the price, so cost savings must be found by other means. Kaman has ventured into operating several services shops (in conjunction with supplier partners) to keep customers in house and offer them a substantial savings over buying new. The ability to offer cost saving solutions is a trademark of Kaman and one of the ways that Kaman has historically gained a loyal customer base and has been differentiating itself from its competitors from the beginning. The main vehicle for documenting these savings offers is the
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