Friday, September 18, 2009

How "Schrade Knife" began fading away.

      Key events in the "knife front" associated with the end of World War II. One of its consequences was that there were a number of independent states; increased transnational economic relations have become blurred boundaries of national markets. On the other hand, the military industry in countries - members of the coalition were working at full capacity, the Army orders are well nourished aviation, mechanical engineering (tanks, military transport systems), shipbuilding, manufacture of personal weapons, including knives.

      In the industry came not only money but also the most modern materials and technology. Most knife companies were too new and unfamiliar. Many of them did not have time to reorganize and eventually collapsed. Schrade was one of them. The competition in the knife industry was large enough, in modern conditions it is not only growing, but also takes special forms. The flow of cheap Chinese products plunged the U.S. market in early 1990. For Schrade this was a disaster. It was impossible to fight. Millions of dollars were spent on expensive equipment to automate production and reduce production costs.
     At one time, Schrade, through his contacts and influence, could acquire the status of consultant cutlery in leading networks of retail stores (Wall-Mart, K-Mart). This was a large "pie" in the retail trading. In this regard, CJ Buck , president of Buck Knives, spoke plainly: "The range of products, presented in Wall-Mart, did not reflect the real situation in the knife industry. Basically, it was a Schrade product”. Later, when Gerber Company, received the life-giving injections of funds from Fiskars, they could dislodge Schrade knife from his post as manager of flows in retailing, revenue from sales last plummeted.

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