CompanyGraph
Stanley Black & Decker Inc.
SWK · NYSE Arca · United States
Sells cordless tools that all share one battery, so every new tool purchase makes it harder to leave.
Stanley Black & Decker sells power tools under the DeWalt brand, and its core business is built around a single battery standard — the 20V MAX platform — that all 200-plus cordless tools in the lineup share. Every time a contractor buys an additional drill, grinder, or circular saw, the dollar value of batteries, chargers, and storage systems already committed to that voltage goes up, so switching to a competing platform means abandoning more capital with each new tool added to the site. That accumulation is also the platform's ceiling: because 20V MAX sets a fixed voltage to keep everything compatible, it delivers less peak power than the 40V and 60V systems competitors now sell, which limits how far up the professional market DeWalt can reach without breaking the interoperability that makes the ecosystem sticky in the first place. The whole structure depends on Samsung SDI and the other cell suppliers continuing to produce the specific battery chemistry and form factor the platform requires — if that supply were interrupted, the interoperability binding the ecosystem together would collapse, and the installed base contractors built up would become stranded equipment rather than a reason to stay.
How does this company make money?
The company earns money each time a power tool, hand tool, or accessory is sold through Home Depot, Lowe's, and industrial distributors. Replacement batteries and accessories sold to contractors who are already locked into the 20V MAX platform tend to carry higher margins than the original tools, and those purchases recur as batteries age and wear out.
What makes this company hard to replace?
A contractor with a full set of DeWalt 20V MAX batteries would lose the value of that investment the moment they moved to a competing platform, because the batteries cannot be used with other brands' tools. Professional job sites also tend to standardize on one brand, so switching means replacing tools across a whole crew rather than just one person's kit. The chargers and storage systems on site are sized for the 20V MAX battery form factor and would also need to be replaced.
What limits this company?
The 20V MAX voltage spec is what makes all the tools compatible with each other, but it also puts a ceiling on raw power. Competing platforms run at 40V and 60V, which means they can drive heavier tools harder. At the high-performance end of the professional market — large circular saws, heavy angle grinders — DeWalt cannot match those platforms without breaking the shared-battery architecture that creates its lock-in.
What does this company depend on?
Samsung SDI and other lithium-ion cell suppliers provide the battery cells the entire cordless platform runs on. Steel alloy suppliers feed hand tool manufacturing. Home Depot and Lowe's control the retail shelf space where most consumer purchases happen. UL certification is required before any power tool can be sold legally for electrical safety compliance. Injection molding tooling suppliers produce the plastic housings used across tool families.
Who depends on this company?
Professional contractors running DeWalt cordless fleets would face job site downtime during battery replacement cycles if 20V MAX production stopped. Home Depot's power tool department would take a significant revenue hit because DeWalt is an anchor brand in those sections. Automotive repair shops that rely on Stanley hand tools would have to replace entire tool sets, since the measurement standards built into those tools are not interchangeable with other brands.
How does this company scale?
When DeWalt adds a new tool model, it can slot straight into the existing 20V MAX architecture and charging system — the R&D cost of the platform is already paid for and spreads across every new product added. What does not get easier as the company grows is manufacturing: precision injection molding and motor assembly automation require specialized tooling that takes time and expertise to set up, and those steps cannot simply be handed off to outside factories without risking quality.
What external forces can significantly affect this company?
Steel tariffs on Chinese imports raise the cost of making hand tools, and it is not always possible to pass those costs to retailers quickly. Lithium prices swing unpredictably because electric vehicle makers are competing for the same battery cell supply chains that DeWalt depends on. CPSC safety regulations can require design changes that make existing manufacturing tooling obsolete, forcing new capital investment before a product can remain on the market.
Where is this company structurally vulnerable?
If Samsung SDI or the other battery cell suppliers stopped making cells in the specific chemistry and form factor the 20V MAX platform requires, every tool in the ecosystem would lose interoperability. The shared-battery advantage would disappear, and contractors would be left with a collection of tools and batteries that no longer work as a system — forcing them to replace equipment regardless of brand loyalty.