Snap-on Inc (NYSE: SNA)

Snap-on is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks including vehicle repair, aerospace, the military, natural resources, and manufacturing.

Founded in 1920, the company sells its products and services through a network of franchisee vans as well as direct and distributor channels under multiple notable brands.

Snap-on also provides financing programs to facilitate sales of its products and support its franchise business.

The company markets its offerings worldwide in more than 130 countries, with the United States as its largest geographic market and meaningful presence in continental Europe, the Asia Pacific region, Canada, and the United Kingdom.

Revenue is generated primarily from the sale of tools, diagnostics and information systems, and equipment to professional users across various industries.

The tools category includes hand tools, power tools, tool storage products and related accessories.

The diagnostics and information systems category comprises handheld and computer based diagnostic tools, service and repair information, diagnostic software, electronic parts catalogs, business management systems and related services.

The equipment category includes wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane equipment, collision repair equipment, vehicle air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers and hoists.

In addition, Snap-on earns revenue from financing programs that provide installment sales and lease contracts to customers who need extended term payment for tools, diagnostics and equipment, as well as loans and leases to franchisees for business and vehicle needs.

The company operates through the following segments: Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services.

• Commercial & Industrial Group serves a broad range of industrial and commercial customers worldwide, including those in aerospace, natural resources, government and military, power generation, transportation and technical education, primarily through direct and distributor channels.

• Snap-on Tools Group primarily serves vehicle service and repair technicians through the company’s multinational mobile tool distribution channel.

• Repair Systems & Information Group serves other professional vehicle repair customers worldwide, mainly owners and managers of independent repair shops and OEM dealerships, via direct and distributor channels.

• Financial Services consists of Snap-on Credit LLC and the company’s international finance subsidiaries, offering installment sales and lease contracts to customers and financing to franchisees for business and vehicle needs.

Snap-on holds a leading position as a manufacturer and distributor of professional tools, tool storage, diagnostics, equipment, and repair software and solutions in both the vehicle service and industrial markets.

The company competes on the basis of product quality and performance, breadth and depth of its product line, service, brand awareness, technological innovation, and the availability of financing through its captive finance arm.

While no single competitor matches Snap-on across all product lines and distribution channels, various firms compete in specific categories such as hand tools, power tools, diagnostics, shop equipment, and information systems.

Snap-on’s competitive advantages stem from its long history of innovation driven by observing work processes, its Value Creation Processes focusing on safety, quality, customer connection, innovation and rapid continuous improvement, and its extensive franchisee van network that provides direct contact with professional users.

Snap-on serves professional vehicle repair technicians who purchase tools, diagnostics and equipment for personal use.

It also serves owners and managers of independent repair shops and original equipment manufacturer dealerships who buy products for use by multiple technicians within a facility.

In the industrial sector, the company supplies a broad cross section of commercial and industrial customers, including those in aerospace, natural resources, government and military, power generation, transportation, technical education and other industries requiring instrumentation, service tools and equipment.

Additionally, the company works with franchisees who operate the mobile van distribution network and rely on Snap-on for product supply, financing and business support.