Porter on Corporate Strategy
OVERVIEW:
Cooper industries was founded in 1833 by Charles and Elias Cooper started its manufacturing by making a steam engines that generated power for manufacturing plants then by 1900 switched to produce natural gas compressors. By 1920, cooper was recognized leader in pipeline compression equipment. In 1929, Bessemer, another company merged to cooper, which was manufacturing the engines that extracted gas from underground wells.

By late 1950s, cooper had gained reputation for good customer services with the expertise in manufacturing processes. In 1958, copper suffered a cyclic downturn which paved the way for its diversification under the leadership of Miller whose aim was corporate growth in phases in a wider range of product market. The corporate strategy was the growth and diversification through acquisitions.

Main reasons for cooper’s to diversifications:
Threat of its original industry, cyclic market, technology issues, low growth rate.
Strength of Cooper: High technology and skilled labor
Cooper has chosen to diversify in both shape and size in order to maximize its strength and refrain from threats. Cooper Industries acquired more than 60 manufacturing companies over a thirty year span. Most of the acquired companies made it possible for Cooper to be independent of the outside environment and giving full control of the manufacturing process concerning their business. From tools to fuses to cables to the drilling equipment was manufactured and distributed by the corporations divisions. Each acquisition is decided from a wish list that was closely examined and studied. At the time of the takeover, the Management Development & Planning division would implement the corporate strategy in a period of three to five years. This involves diversification and elimination of the products that are poor sellers. In some cases the production plant is relocated and the staff is reorganized for the best efficient set up. In time all these companies are turned into profit centers. It is a broadly diversified manufacturer of electrical and general industrial products, and energy related machinery and equipment. The company operates in three different business segments with 21 separate profit centers. These segments include electrical and electronic, commercial and industrial, compression, drilling and energy equipment. The product line is consisted of cheap fuses to $3 million compressor tribune sets along with products such as hand tools and light fixtures.

The company bid a $21-a-share tender offer to acquire Champion Spark Plug, manufacturer of auto spark plugs, as a counter offer for the Dana Corp.s $17.50-a-share bid. Also, in the meantime, Cooper Industries was considering a $700 million bid for Cameron

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Cooper Industries And Elias Cooper. (July 5, 2021). Retrieved from https://www.freeessays.education/cooper-industries-and-elias-cooper-essay/