Analysis of Hobart Corp.
BACKGROUND:
HOBART CORPORATION
Hobart Corporation was headquartered in Troy, Ohio and was preparing to embrace the Internet world and be a part of the Internet Revolution in 1996. Internet was privileged by the blending of technology and software and used in turn to promote marketing and various transactions. It looked like the gateway to reduced cost and increased revenue.
Internet has created dilemma for Hobart:
Hobart Corporation was not completely sure if the establishment of internet would actually be profitable for them or not. There were questions regarding relationship with the traditional channel and their reaction. What would happened to the distributors and dealers and if really internet was suitable for their business.
During the 1980s and 1990s, Hobart had conflict with its distributors and it lead to market share decline. Sustaining its current growth and maintaining its financial stability were huge issues that were related to the use of internet.
Internet initiative was assumed to maintain and improve Hobart’s relationship with its distributors. Internet was seen as a rescuer that would make Hobart’s market leadership position stronger and also make it technologically aligned with the industry and time. The company had to fight against industry consolidations, competition and demand targets.
Glimpse of Hobart Corporation’s origination and progression:
Hobart Corporation was born in 1897 as Hobart Electric Manufacturing Company and started off with the production of coffee grinder. In 1913 it was known as The Hobart manufacturing company and had sales over $1 million and introduced kitchen mixer after a year. Hobart was acquired by PMI in 1990 and PMI in turn was acquired by ITW in 1999, with a value of $3.4 billion. These changes were affecting dealer relationships.
Premark International Inc, another acquisition of ITW, merged with Hobart Brothers and became a wholly owned subsidiary by ITW. The merged
HOBART CORPORATION
Hobart Corporation was headquartered in Troy, Ohio and was preparing to embrace the Internet world and be a part of the Internet Revolution in 1996. Internet was privileged by the blending of technology and software and used in turn to promote marketing and various transactions. It looked like the gateway to reduced cost and increased revenue.
Internet has created dilemma for Hobart:
Hobart Corporation was not completely sure if the establishment of internet would actually be profitable for them or not. There were questions regarding relationship with the traditional channel and their reaction. What would happened to the distributors and dealers and if really internet was suitable for their business.
During the 1980s and 1990s, Hobart had conflict with its distributors and it lead to market share decline. Sustaining its current growth and maintaining its financial stability were huge issues that were related to the use of internet.
Internet initiative was assumed to maintain and improve Hobart’s relationship with its distributors. Internet was seen as a rescuer that would make Hobart’s market leadership position stronger and also make it technologically aligned with the industry and time. The company had to fight against industry consolidations, competition and demand targets.
Glimpse of Hobart Corporation’s origination and progression:
Hobart Corporation was born in 1897 as Hobart Electric Manufacturing Company and started off with the production of coffee grinder. In 1913 it was known as The Hobart manufacturing company and had sales over $1 million and introduced kitchen mixer after a year. Hobart was acquired by PMI in 1990 and PMI in turn was acquired by ITW in 1999, with a value of $3.4 billion. These changes were affecting dealer relationships.
Premark International Inc, another acquisition of ITW, merged with Hobart Brothers and became a wholly owned subsidiary by ITW. The merged