Peter Hosking's Story to Success and Their Use of Globalisation
“A man with a machine is better than a man without a machine” Henry Ford said in 1926 (T. Davis, 05). As the demand for power tools sky rocketed, DIY heaven opened up its pearly gates for one company, Global Machinery Company, a tool manufacturing company started in 1997 by the 5th ranking on the “Australia’s Richest People under 40” (J. Thomson, 06) Peter Hosking. What was suppose to be a quick run for cash turned out to be a huge success for Hosking in establishing its niche market within the DIY home- handy man. Their products includes low priced essential DIY handy- man tools mostly imported from China and Taiwan (F. Tyndall, 06) and everything else from cement to generators (J. Thomson, 05) for insanely cheap prices. The chief executive of Mitre 10, Bernie Bicknell also complimented on GMC’s strategy of sticking to the DIY market rather than trying to compete with the big brands into the professional market, saying “The one thing you can say about GMC is that they have picked their market segment very well and dominated it.”(J. Thomson, 05) The aim as described by Mr. Hosking himself was to bring together a set of essential tools with which your average Joes can actually achieve what they want (L. Saccotelli, 05). Net profits posted by GMC in recent years has being exponentially growing from 8.8 million in 03-04, up from 6.4 million in 02-03, which sky rocketed in 04-05 with a 43.8% increase to 10.9 million. This growth continued in 04-05 turning over about 300 million net profits which was a 45% increase from the previous year according to Hosking.(J. Thomson, 05) GMC has gained footholds in 47 countries such as the US, Britain and its home country Australia through an “almost ruthless approach to the market in respect to pricing (J. Hogan, 04) against the big names in the tool industry such as Black & Decker. In addition to GMC’s success in capturing the hearts of the big guys, pouring 12 million on research and development (J. Thomson, 05) on new products