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Newell also acquire small businesses to round out their existing product lines and consolidate industry capacity.
This two-pronged strategy proved to be quite successful as Newell acquired more than 40 major businesses till 1998. The company acquiring strategy allowed them to add business that are similar in nature to its portfolio and thus consolidate industry capacity. Such a move allows them to enjoy economies of scale but offering differentiated products of the same category to suit different customer as a result. “Newellization” includes transferring higher technology from Newell to these companies that had been acquired and thus they are able to supply goods in faster time while quality of the products is not being compromised...
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