Case 10
Snap-on Tools Corporation
Case Objective
1) To illustrate a novel distribution strategy that became, and continues to be, the primary
basis of a firm’s differential advantage.
Problem Situation
While there is no immediate need to “put out a fire” here, there is a critical underlying issue that,
Teaching Suggestions
This is a fairly well known company but one that is likely to be of more interest to the male
members of the class, especially those who have an interest in working on cars. So, it might be a
discussion off to a strong start.
Case Discussion
The question raised in the case is straightforward: Can Snap-on’s differential advantage based on
Patterns of Customer Behavior – Snap-on’s entire distribution strategy is based on customers’
desire to have tools and equipment brought right to their places of business vie Snap-on’s mobile
vans. The convenience and service provided through this system is really what customers are
Competitive Structure – As alluded to in the previous section, the competitive scene in the
automobile repair business has been changing dramatically in recent years. Small independent
customers.
Changing Technology – Automobiles have become far more complex in recent years, but
paradoxically they have also become more reliable. Advancing technology, especially in the use
of electronics as well as technically advanced manufacturing processes, has made this possible.
From the standpoint of the auto repair business, these developments have made it more difficult