Same as: acquire renown company making a solid product, substitute product by something from China at a fraction of quality/cost, still charge the same for the next couple years until word has spread.
Pyrex is notorious for this. The whole brand used to be about it being borosilicate glass, but they substituted it for standard glass which - surprise - shatters under thermal stress.
Kodak Print for one. Kodak Print was spun off into a holding company called Kodak Alaris who then sold it to a Chinese investment firm who aren't doing anything with it other than constantly increasing prices to squeeze hospitals and university labs.
if you're talking about hand tools, they've always been average quality at best. The real advantage has been the warranty, which from what I understand is still honored.
Craftsman power tools are absolute joke and might as well have a fisher price logo on them.
the replacement ratchet I got from craftsman (lowes) to replace my small (1/4?) drive for free is much much better than the one i bought originally in 2010.
