The main difference is Stihl is privately owned and controlled by the Stihl family. Unless a future generation gets tired of piling money up in vaults it will be around for your lifetime and prolly your grandkids lifetime. Imho Stihl is one of the best managed companies in the world, marketing and dealer support is world class as is there mfg facilities. They spend the money needed for engineering and product development.
As long as they stay away from big box stores/chain retail they can control their margins with precision and keep the quality standard where they want to.
There is a huge difference between a public company with margin pressure. I predict (get the noose out) that Husky will have the toughest time surviving. As several AS member's have reported either shop's carrying their product are closing up or diminishing. I think they will survive, but will under go major shifts in distrobution, they'll have to really narrow the product selection at big boxes or spin it off in a different division as it will put huge pressure on margins, which will in the long term effect quality and product development. It doesn't happen overnight, it takes a while for big boxes to bleed you to death. Buyer's from Wal-Mart and Lowes will put extreme pressure on them to hit lower and lower price points, they don't care about quality or returns, returns just get charged back to Husky. When a WM buyer offers to buy a 400k units of a chainsaw, or 200k push lawn mowers or 450-500k units of weed eaters, they get blinded by the number, a public company today has to maintain at least a 35-40% gross margin to cover all the cost on the profit and loss statement. A typical WM store today only will net 5-8% pre-tax profit, I know, I've run one. With the thin margins of today, Husky can't afford to stub their toe in any way.
It's a tough for any business to survive in todays economy. Both companies will be looking to dominate the emerging Chinese market. With their booming economy the average Chinaman will be throwing down the misery whip and axe's and will be buying power equipment for the first time. I'm not kidding, on my first trips to China you would see them haul twenty guys out in a dump truck with shovels to fill it, very cost efficient. Today they are using CAT loaders. Whoever wins that market will be dominate world wide. I'll bet on the germans to win the battle.
