Bosch Power Tools: Successful with innovations and acquisitions

(March 2009)

The Power Tools Division of the Bosch Group is the world market leader for power tools and power tool accessories. In 2008, its workforce generated sales of 3.15 billion euros, 90 percent of which outside of Germany. With brands such as Bosch, Skil and Dremel, the division stands for customer focus and great innovative strength.

The core success factors are innovative strength and pace of innovation. Each year, Bosch launches more than 100 new power tools onto the market. Bosch Power Tools generated 35 percent of its sales in 2008 with products that have been on the market for less than two years. All five business segments of Bosch Power Tools – portable electric power tools, benchtop tools, accessories, measuring tools and electric garden tools – outperformed the market.

Bosch was able to further strengthen its position as the world market leader for portable electric power tools. The main worldwide growth segment in this area is occupied by cordless tools with lithium-ion (LI) battery technology. Bosch is a pioneer in this field, having launched the first power tool with LI battery technology, the Ixo, onto the market in 2003. The Ixo remained the world’s best-selling power tool for the fifth year in succession. Bosch offers the widest and most complete range of LI cordless tools – from the small Dremel Stylus to Europe’s most popular electric garden tool, the lightweight Isio shrub shear, through to the 36-volt rotary hammer for tough applications on the construction site. Bosch also strengthened its position as world market leader for accessories – as a result of its own efforts and of the acquisition of the accessories business of the Freud Group, which includes high-performance circular saw blades and router bits, and of sia Abrasives, which is a manufacturer of flexible abrasive systems. In acquiring RoboToolz and CST/berger, Bosch has also invested in the growth segment of measuring tools for do-it-yourselfers and professionals, and is now one of the world’s two leading suppliers of rangefinding, detection and levelling tools. Following currency adjustment, Bosch achieved growth of more than 15 percent with electric garden tools in Europe in 2008 and strengthened its leading position. With the acquisition of L.R. Nelson Corporation in the USA, Bosch has expanded its product range for garden irrigation. Headcount increased as a result of the acquisitions, and stood at approximately 18,000 associates worldwide on January 1, 2009.