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Company > Briggs & Stratton Corp: Business Model, SWOT Analysis, and Competitors 2024

Briggs & Stratton Corp: Business Model, SWOT Analysis, and Competitors 2024

Published: Feb 24, 2024

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    In this comprehensive blog article, we delve into the intricacies of Briggs & Stratton Corp's business model, providing a detailed SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for the year 2024. As a leading manufacturer of gasoline engines for outdoor power equipment, Briggs & Stratton Corp faces unique challenges and opportunities in an ever-evolving market. We will also compare and contrast Briggs & Stratton with its competitors, highlighting how the company stands out in the industry and areas where it can improve. This analysis aims to offer valuable insights for investors, industry analysts, and enthusiasts interested in the company's strategic positioning and future outlook.

    What You Will Learn

    • Ownership and Vision: Uncover who owns Briggs & Stratton Corp and the core mission that guides their operations, providing a deeper understanding of the company's goals and values.
    • Revenue Streams and Business Model: Delve into how Briggs & Stratton Corp generates income, including an in-depth look at their Business Model Canvas, to grasp the strategic framework that underpins their financial success.
    • Market Position and Strategy Insights: Explore Briggs & Stratton Corp's competitive landscape by identifying their key competitors and dissecting a comprehensive SWOT analysis, offering insights into their strengths, weaknesses, opportunities, and threats in the industry.

    Who owns Briggs & Stratton Corp?

    Who owns Briggs & Stratton Corp?

    Briggs & Stratton Corp, a renowned name in the world of gasoline engines for outdoor power equipment, has had a fascinating journey in terms of ownership and corporate structure. As of my last update in 2023, the company underwent significant changes in its ownership.

    In August 2020, Briggs & Stratton filed for Chapter 11 bankruptcy, marking a pivotal moment in the company's long history. This filing was not the end but rather a transition, leading to a change in ownership. KPS Capital Partners, a global private equity firm with a diverse portfolio of investments across various industries, acquired Briggs & Stratton during this process.

    KPS Capital Partners specializes in making controlling equity investments in manufacturing and industrial companies across a broad range of industries, including automotive parts, consumer products, healthcare, textiles, and metals. Their acquisition of Briggs & Stratton signaled a new chapter for the company, focusing on revitalizing its operations and enhancing its market position.

    Under the ownership of KPS Capital Partners, Briggs & Stratton has continued to operate, focusing on its core businesses and looking to expand its product offerings and market reach. The change in ownership has brought about a strategic shift, aiming to leverage Briggs & Stratton's strong brand and heritage in outdoor power equipment to drive growth and innovation.

    The acquisition by KPS Capital Partners ensures that Briggs & Stratton remains a key player in its market, backed by the resources and expertise needed to navigate the challenges of the modern business landscape. As the company moves forward under new ownership, industry observers and customers alike are keen to see how Briggs & Stratton evolves and adapts to the changing demands of the marketplace.

    What is the mission statement of Briggs & Stratton Corp?

    Briggs & Stratton Corp, a renowned name in the world of power generation and lawn and garden equipment, operates with a clear and focused mission statement that guides its operations, strategic decisions, and overall approach to business. This American Fortune 1000 manufacturer of gasoline engines primarily for outdoor power equipment prides itself on its commitment to providing innovative solutions that are reliable and beneficial to its customers and the environment.

    Mission Statement of Briggs & Stratton Corp

    The mission statement of Briggs & Stratton Corp is "to provide power to people to make work easier and improve lives." This concise yet powerful statement encapsulates the company's dedication to not only producing high-quality products but also to impacting lives positively through innovation and reliability.

    Breaking Down the Mission Statement

    • "to provide power to people": At its core, Briggs & Stratton is in the business of making engines and other power equipment. This part of the mission statement emphasizes the company's role in empowering individuals and businesses by supplying them with the tools they need to perform various tasks efficiently.

    • "to make work easier": One of Briggs & Stratton's primary objectives is to innovate in ways that simplify tasks for its users. Whether it's a homeowner looking to maintain their garden or a professional landscaper managing large properties, the company's products are designed to reduce effort and save time, making work less burdensome.

    • "and improve lives": Beyond just making work easier, Briggs & Stratton aims to enhance the quality of life for its customers. This could be through providing more time for individuals to spend on activities they enjoy, by reducing the environmental impact of their products, or through community engagement and support.

    Conclusion

    The mission statement of Briggs & Stratton Corp reflects its commitment to excellence, innovation, and positive impact. It's a reminder that the company's goals go beyond mere profitability to genuinely making a difference in the lives of people and the communities it serves. By focusing on providing powerful, easy-to-use products, Briggs & Stratton continues to uphold its mission, driving forward with integrity and purpose.

    How does Briggs & Stratton Corp make money?

    Briggs & Stratton Corp, a renowned name in the field of power generation, has carved its niche in the global market through a diversified portfolio of products and services. Understanding how this corporation generates revenue offers insights into its business model and strategic focus areas. Let's delve into the key revenue streams that fuel the financial engine of Briggs & Stratton Corp.

    Product Sales

    The core of Briggs & Stratton's revenue comes from the sale of its wide range of products. Primarily known for manufacturing gasoline engines for outdoor power equipment, the company caters to both residential and commercial needs. Their product lineup includes:

    • Engines: These are the heart of many types of outdoor power equipment, such as lawn mowers, snow blowers, and garden tillers. Briggs & Stratton engines are known for their reliability and efficiency, making them a preferred choice among equipment manufacturers.

    • Portable and Standby Generators: With an increasing need for reliable power solutions, both portable and standby generators contribute significantly to the company's earnings. These products are essential for emergency power supply for homes and businesses during power outages.

    • Pressure Washers and Other Power Products: The company also manufactures a variety of other power products including pressure washers, which are used for cleaning surfaces and buildings. These products further diversify the company's offerings and revenue sources.

    Parts and Accessories

    In addition to the main products, Briggs & Stratton also generates substantial income from the sale of parts and accessories for its engines and other power equipment. This includes maintenance kits, oil filters, spark plugs, and other replacement parts that ensure the longevity and optimal performance of their products. This segment not only contributes to direct sales but also fosters customer loyalty and repeat business.

    Service and Support

    Briggs & Stratton recognizes the importance of after-sales service and support in generating recurring revenue. The company offers comprehensive maintenance and repair services through its vast network of authorized service dealers. This not only enhances customer satisfaction but also contributes to the company's profitability through service fees and the sale of parts during maintenance.

    Licensing and Partnerships

    Another strategic avenue for revenue generation comes from licensing and partnerships. Briggs & Stratton licenses its technology and brand to other manufacturers and enters into partnerships for co-developing products. These collaborations allow the company to tap into new markets and distribution channels, further bolstering its income.

    International Operations

    Expanding beyond the domestic market, Briggs & Stratton has established a significant presence in international markets. The global demand for power equipment and engines opens up additional revenue streams for the company. Sales in foreign markets are subject to fluctuations in currency exchange rates and economic conditions, but they remain a crucial part of Briggs & Stratton's growth strategy.

    In conclusion, Briggs & Stratton Corp makes money through a multifaceted approach that encompasses the sale of a wide range of power equipment products, parts, and accessories, complemented by robust service and support offerings. The company's strategic licensing and partnerships, along with its international operations, further enhance its revenue-generating capabilities. This diversified business model positions Briggs & Stratton Corp for sustained growth and profitability in the competitive landscape of power generation and outdoor equipment.

    Briggs & Stratton Corp Business Model Canvas Explained

    Briggs & Stratton Corp, a renowned name in the power equipment industry, has crafted a business model that sustains its leadership and innovation. Understanding its Business Model Canvas helps in deciphering how the company delivers value to its customers, partners, and shareholders. Let's delve into the key components that define Briggs & Stratton's approach to business.

    Value Propositions

    Briggs & Stratton's primary value proposition lies in its comprehensive range of high-quality, reliable engines and power equipment. The company caters to various market segments, including residential, commercial, and industrial customers, offering products that are known for their durability, performance, and efficiency. Additionally, Briggs & Stratton emphasizes innovation, continually investing in research and development to introduce new technologies that meet evolving customer needs.

    Customer Segments

    Briggs & Stratton serves a diverse set of customer segments, including:

    • Residential customers: Homeowners seeking reliable and efficient power equipment for lawn and garden maintenance.
    • Commercial customers: Businesses in need of heavy-duty engines and power equipment for landscaping, agriculture, and construction.
    • OEMs (Original Equipment Manufacturers): Companies that incorporate Briggs & Stratton engines into their own equipment designs.

    Channels

    Briggs & Stratton employs a multi-channel distribution strategy to make its products accessible:

    • Authorized dealers and distributors: Offering personalized services and support.
    • Online sales: Direct-to-consumer sales through the company's website and other e-commerce platforms.
    • Retail partners: National and local retailers carrying Briggs & Stratton products.

    Customer Relationships

    Maintaining strong relationships with customers is a cornerstone of Briggs & Stratton's business model. The company invests in:

    • Customer service and support: Providing comprehensive after-sales services, including maintenance and repair.
    • Warranty programs: Offering warranty coverage that assures customers of product reliability.
    • Community engagement: Participating in community events and initiatives to build brand loyalty and trust.

    Revenue Streams

    Briggs & Stratton's revenue is generated through multiple streams, including:

    • Product sales: Direct sales of engines and power equipment.
    • Parts and accessories: Sales of replacement parts and accessories that enhance product performance.
    • Service and maintenance: Providing servicing for products out of warranty.

    Key Resources

    The company's key resources include:

    • Manufacturing facilities: State-of-the-art facilities that ensure high-quality production.
    • R&D capabilities: A strong focus on research and development to innovate and improve product offerings.
    • Brand reputation: A well-established brand that is synonymous with quality and reliability.

    Key Activities

    Key activities that drive Briggs & Stratton's business include:

    • Product development: Designing and developing new products and technologies.
    • Manufacturing and distribution: Efficient production and distribution processes to ensure product availability.
    • Marketing and sales: Strategic marketing and sales efforts to promote products and reach target customers.

    Key Partnerships

    Briggs & Stratton relies on key partnerships to augment its business model:

    • Suppliers: Strong relationships with suppliers ensure the timely and cost-effective procurement of quality materials.
    • OEM partners: Collaborations with OEMs expand the reach of Briggs & Stratton engines in various equipment markets.
    • Service providers: Partnerships with service providers enhance customer service and support capabilities.

    Cost Structure

    The cost structure of Briggs & Stratton includes:

    • Production costs: Costs associated with manufacturing engines and equipment.
    • R&D expenses: Investments in research and development to stay at the forefront of technology.
    • Marketing and sales: Expenditures for promoting the brand and products.

    By analyzing Briggs & Stratton Corp's Business Model Canvas, it's clear that the company has built a robust framework that supports its mission to deliver power and performance to meet global customer needs. Through constant innovation, strong customer relationships, and strategic partnerships, Briggs & Stratton continues to lead and expand in the power equipment industry.

    Which companies are the competitors of Briggs & Stratton Corp?

    Which companies are the competitors of Briggs & Stratton Corp?

    Briggs & Stratton Corp, renowned for its production of gasoline engines for outdoor power equipment, operates in a competitive landscape that includes several key players. These competitors vary in size, global reach, and product offerings, but all vie for market share in the outdoor power equipment industry. Here, we delve into some of the primary companies that stand as competitors to Briggs & Stratton Corp.

    1. Honda Motor Co., Ltd.

    One of the most significant competitors, Honda, is globally recognized for its engines and a wide range of power equipment. Honda's engines are known for their reliability, fuel efficiency, and environmental friendliness. The company's extensive product line includes generators, lawn mowers, tillers, and snow blowers, which directly compete with Briggs & Stratton's offerings.

    2. Kohler Co.

    Kohler Co., primarily known for its plumbing products, also manufactures engines and power equipment. With a focus on durability and performance, Kohler engines are used in a variety of applications, including commercial, residential, and industrial settings. Kohler's commitment to innovation and quality makes it a formidable competitor in the power equipment market.

    3. Kawasaki Heavy Industries, Ltd.

    Kawasaki is another global name that produces engines and power equipment, competing with Briggs & Stratton in several segments. Kawasaki's Engines Division offers engines for lawn mowers, utility vehicles, and other landscaping equipment. Known for their performance and durability, Kawasaki engines are a popular choice among both consumers and manufacturers of power equipment.

    4. Yamaha Motor Co., Ltd.

    While Yamaha may be best known for its motorcycles and marine products, the company also offers a range of power products, including generators and multi-purpose engines. Yamaha's reputation for high-quality and innovative products extends to its power product line, making it a competitive player in markets that overlap with Briggs & Stratton's interests.

    5. Tecumseh Products Company

    Although it has seen changes in its business structure over the years, Tecumseh remains a notable name in the manufacture of small engines for lawn mowers, snow blowers, and other outdoor power equipment. Tecumseh engines have a legacy of being robust and reliable, positioning the company as a key competitor in specific segments of the outdoor power equipment market.

    These companies, among others, create a competitive environment that challenges Briggs & Stratton Corp to continually innovate and improve its product offerings. The landscape is dynamic, with shifts in consumer preferences, technology advancements, and global economic factors influencing competition. As Briggs & Stratton Corp navigates this competitive field, its ability to adapt and innovate will be key factors in maintaining and growing its market presence.

    Briggs & Stratton Corp SWOT Analysis

    Strengths

    Briggs & Stratton Corp, as a leading manufacturer of gasoline engines for outdoor power equipment, boasts a number of strengths that have solidified its position in the market. Firstly, the company has a robust product portfolio that caters to a wide range of consumer needs, from residential lawn and garden equipment to commercial-grade machinery. This diversity in product offerings ensures a broad customer base and reduces dependency on a single market segment.

    Secondly, Briggs & Stratton has a strong global presence, with manufacturing, distribution, and sales operations spread across various countries. This international footprint not only allows the company to tap into emerging markets but also mitigates risks associated with regional economic downturns.

    Moreover, the company's commitment to innovation and quality is evident in its continued investment in research and development. This focus on innovation ensures that Briggs & Stratton remains at the forefront of technological advancements in engine manufacturing, thereby maintaining its competitive edge.

    Lastly, Briggs & Stratton has established a vast and efficient distribution network that ensures its products are easily accessible to customers worldwide. This network, combined with strong brand recognition and loyalty, has enabled the company to maintain a leading position in the market.

    Weaknesses

    Despite its strengths, Briggs & Stratton faces certain weaknesses that could hinder its growth. One significant weakness is its heavy reliance on the seasonal demand for outdoor power equipment. This seasonality affects cash flow and revenue generation, especially during off-peak months, and could pose a challenge in maintaining steady financial performance year-round.

    Additionally, the company's focus on gasoline-powered engines in an era increasingly moving towards electric and battery-operated machinery could limit its potential in emerging markets. As environmental concerns and regulations become more stringent, there is a pressing need for Briggs & Stratton to diversify its product lineup to include more eco-friendly options.

    Opportunities

    The shift towards greener technologies presents a considerable opportunity for Briggs & Stratton. Investing in the development of electric and hybrid engines could open up new market segments and drive future growth. Moreover, expanding its presence in developing countries, where the demand for outdoor power equipment is on the rise, could significantly boost sales and market share.

    Additionally, strategic partnerships and acquisitions could enable Briggs & Stratton to enhance its technological capabilities and expand its product range, further solidifying its market position.

    Threats

    Briggs & Stratton's market is highly competitive, with several players vying for market share. Increased competition, especially from companies offering more environmentally friendly alternatives, could impact its profitability and market position.

    Economic downturns and unfavorable weather conditions can also adversely affect the demand for outdoor power equipment, posing a threat to the company's financial stability. Furthermore, fluctuations in raw material prices and potential supply chain disruptions could increase production costs and affect the company's bottom line.

    In conclusion, while Briggs & Stratton Corp has maintained a strong market position through its diverse product offerings and global presence, it faces challenges from economic, competitive, and environmental factors. Addressing its weaknesses and capitalizing on emerging opportunities, especially in green technology, will be crucial for its continued success and growth.

    Key Takeaways

    • Ownership of Briggs & Stratton Corp: As of the latest updates, Briggs & Stratton Corp, a renowned name in the production of gasoline engines for outdoor power equipment, has transitioned ownership and is now a private entity under KPS Capital Partners, following a bankruptcy filing and subsequent acquisition process.

    • Mission Statement: Briggs & Stratton Corp is focused on delivering power to make work easier and improve lives. Their commitment is evident in their innovative products and solutions that meet a wide range of consumer needs, emphasizing reliability, durability, and efficiency.

    • Revenue Generation: The primary source of income for Briggs & Stratton comes from the manufacturing and sale of various engines and outdoor power equipment. Their diverse portfolio, which includes lawn mowers, generators, and pressure washers, caters to both residential and commercial markets, enabling a broad revenue stream.

    • Business Model Canvas Overview: Briggs & Stratton operates on a robust business model that emphasizes key partnerships, value propositions such as innovation and reliability, customer relationships built on trust and quality, and key activities like R&D and strategic acquisitions. This framework supports their mission and aids in combating competitive pressures.

    • Competitors and SWOT Analysis: Key competitors include Kohler Co., Honda Motor Co., Ltd., and Yamaha Motor Corporation, signifying a highly competitive market. SWOT analysis highlights Briggs & Stratton's strengths in brand reputation and diverse product line; opportunities in expanding global markets and technological advancements; weaknesses in dependency on specific market segments; and threats from intense competition and market volatility. This analysis underpins strategic planning and competitive positioning.

    Conclusion

    In conclusion, Briggs & Stratton Corp, now owned by KPS Capital Partners following its Chapter 11 bankruptcy filing in 2020, remains a significant player in the global market for gasoline engines for outdoor power equipment. The company's mission statement, centered around providing power to make work easier and improve lives, reflects its commitment to innovation and quality in the products it manufactures. Through a diverse product line that includes engines, portable and standby generators, and pressure washers, Briggs & Stratton Corp generates revenue by serving both residential and commercial customers, showcasing a robust business model that emphasizes efficiency, innovation, and customer satisfaction.

    The Business Model Canvas for Briggs & Stratton Corp highlights the company's key partners, activities, resources, value propositions, customer relationships, channels, customer segments, cost structure, and revenue streams, providing a comprehensive overview of its operational framework. This model underscores the company's strategic approach to leveraging its strengths, such as a strong brand reputation and extensive distribution network, while also navigating the challenges posed by intense competition and market shifts.

    Speaking of competition, Briggs & Stratton Corp faces stiff challenges from companies like Honda, Kohler Co., and Generac Holdings Inc., which also specialize in manufacturing engines and power equipment. These competitors push Briggs & Stratton to continuously innovate and improve its offerings to maintain its market position.

    A SWOT analysis of Briggs & Stratton Corp reveals its strengths, such as a broad product portfolio and a strong global network; opportunities, including expansion into emerging markets and product diversification; weaknesses, like reliance on the cyclical outdoor power equipment market; and threats, including rising raw material costs and environmental regulations. This analysis highlights the strategic considerations Briggs & Stratton must navigate to sustain and grow its market presence.

    In essence, Briggs & Stratton Corp's journey through ownership changes, its mission-driven approach, diversified revenue streams, strategic business model, competitive landscape, and thorough SWOT analysis illustrates a company that is resilient, strategically savvy, and continuously adapting to meet the demands of a dynamic global market. As Briggs & Stratton Corp moves forward, it will undoubtedly continue to leverage its strengths and opportunities to address its weaknesses and mitigate potential threats, ensuring its place as a leader in the outdoor power equipment industry.

    FAQs

    How can I find a SWOT analysis on a company?

    There are several ways to find a SWOT analysis on a company:

    1. Company Websites: Some companies may have a SWOT analysis available on their website, typically in their investor relations section or annual reports.

    2. Business News Websites: Websites such as Bloomberg, Reuters, and CNBC often publish SWOT analyses of various companies as part of their coverage.

    3. Market Research Reports: Market research firms such as IBISWorld, MarketResearch.com, and Statista often include SWOT analyses as part of their reports on specific industries and companies.

    4. Business Databases: Databases such as Factiva, Business Source Complete, and Hoover's may have SWOT analyses available for specific companies.

    5. Professional Analyst Reports: Analyst reports from firms such as Morningstar, Credit Suisse, and Goldman Sachs may also include SWOT analyses of companies.

    6. Academic Journals: Academic journals in the fields of business and management may also include SWOT analyses of companies as part of their research articles.

    By utilizing these resources, you should be able to find a SWOT analysis on a specific company.

    What are 5 examples of threats in SWOT analysis?

    1. Increasing competition in the market
    2. Technological advancements that may make current products or services obsolete
    3. Changes in government regulations that may impact the business
    4. Economic downturns or fluctuations in the market
    5. Natural disasters or other external events that could disrupt business operations

    What will be your SWOT analysis for the company?

    Strengths:

    1. Strong brand reputation and recognition in the industry.
    2. Diverse product portfolio catering to a wide range of customers.
    3. Robust distribution network and presence in multiple markets.
    4. Innovative research and development capabilities leading to new product offerings.
    5. Strong financial performance and steady revenue growth.

    Weaknesses:

    1. Dependence on a few key suppliers for raw materials.
    2. Limited presence in emerging markets and potential for expansion.
    3. High production costs leading to lower profit margins.
    4. Limited digital marketing and e-commerce capabilities.
    5. Heavy reliance on traditional retail channels for sales.

    Opportunities:

    1. Expansion into new markets and regions to increase market share.
    2. Launching new product lines to cater to changing consumer preferences.
    3. Investing in e-commerce and digital marketing to reach a wider audience.
    4. Strategic partnerships and collaborations with other companies for mutual growth.
    5. Acquiring smaller competitors to consolidate market position.

    Threats:

    1. Intense competition from other established brands in the industry.
    2. Fluctuating raw material prices impacting production costs.
    3. Economic downturns and market volatility affecting consumer spending.
    4. Changing government regulations and policies impacting business operations.
    5. Rapid technological advancements leading to potential disruption in the industry.

    What are 5 examples of weakness in SWOT analysis?

    1. Lack of resources or funding
    2. Inadequate infrastructure or technology
    3. Limited market presence or customer base
    4. Poor brand reputation or image
    5. Inexperienced or ineffective management team

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