Problem Case Study for Curtis Automotive Hoist
How could Curtis Automotive Hoist (CAH) maintain its fast growth and prestigious brand image with expanded market share given its limited financial and human resources? Should it adopt a market penetration strategy in US or should it follow a market development strategy and expand to Europe? If it adopts the market penetration strategy, should it approach the US market through the establishment of a sales office or through enhanced joint efforts with its current distributor? If entering Europe is desired, should CAH start with licensing or joint venture agreement with Bar Maisse or through direct investment?
Key Issues
CAH manufactures and markets surface automotive hoists in North America. The company has successfully positioned its product as a superior offering and used extensive personal selling to promote and serve the product. Its strengths lie first in its superior product and the extensive product line. Additionally, CAH has design expertise and possesses four patents including one for the key safety feature. Second, CAH's sales force is essential to CAH's success. The sales force focuses on serving large ¡°direct¡± accounts and has been able to get approval from them. It established a distributor network across North America and has generated about 25% of annual unit sales. Finally, CAH's prominent reputation allows it to charge a premium when its competitors are mainly competing on price.
Despite CAH's competencies, its US distribution faces serious challenges. CAH's exclusive US distributor fails to actively promote the sales of Curtis Lift. In fact, the lift is but a minor product within the wholesaler's complete product line and accounts for only 20% of its total lift sales. Given that US market currently accounts for 60% of CAH's sales and holds growth potential in future, the current US distribution system may hurt CAH's growth. Another problem is CAH's high production cost. Its cost of sales accounts for approximately 72% of sales, which is at least 20% higher than that of dominant players. The relatively low contribution margin leaves the company little flexibility in competition.
Competitive and Industrial Analysis
The customers of hoists are new car dealers, used car dealers, specialty shops, chains and independent garages. CAH mainly targets the specialty shop segment, particularly those wheel alignment shops. As the purchase of a hoist represents a major capital investment, customers value the features and brand of the hoist. As parent companies of car or service dealerships often play a key role in the purchasing decision, extensive personal selling is required to thoroughly convey the large amount of complex information before getting approval from parent companies.
In conclusion, I feel Harley can achieve it growth goals by reducing component manufacturing costs, improving its product offering in Europe and through a smart advertising plan in both North America and Europe.
It is undisputable that one of Galanz’ strength is the ability to produce goods with a substantially lower cost. Nevertheless, almost all Chinese manufacturers are cost-effective in terms of production of goods. What causes Galanz to outperform other Chinese manufacturers is its initial method of internationalization. The choice of employing OEM method was proven to be a crucial success factor. By using OEM, Galanz went into the global market inexpensively by avoiding the costs associated with promoting its brand and establishing a distribution network. It also enabled the company to use the OEM partners’ manufacturing equipment to produce its own branded products to be sold in the domestic market.
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Hertz understands their challenges, but their strategy of increasing market share through acquisitions, product innovations, and variety of cars makes sense when it comes to intense
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Hunsk Engines is a motorcycle company that made the fatal mistake of expanding its research in the market on its new products. The companies main competitors were companies like Harley Davidson, where they sold classic products that were seen as something with altering respect. Marty Echt is hired on by Hunsk Engines to restore the company’s image, on what used to be classic motorcycles. He argues that the company made the mistake of forgetting about its original products and, “lost its identity”. This problem frequently happens when companies attempt to grow, in order for new products to make it in the market place you have to carefully strategize its competitive characteristics and know when to introduce a new product through Michael Porters life cycle.
There are many different automobile companies providing buyers with many styles of cars, trucks, SUVs, and motorcycles. Toronto Star January 14, 2005 present ways to approach the automotive buying process. There are many different surveys, crash reports, and rating systems comparing different companies and their vehicles. Things you should look for when reading these published articles are who conducted the study? Who paid for it? Who gains from it? Who loses? These are all things to keep eye on as some automotive companies will run their own surveys making their products seem overpowering against the competition. Some prove their products are safer then the competition where the competition has been proven time and time again to make that survey seem inaccurate.
Since their founding in 1837, John Deere has led the agriculture industry around the world. For over 135 years the John Deere leaping deer logo is one of the most recognized logos in existence today, it represents a symbol of quality products (Our History, 2017). As of May 2017, John Deere has over 56,800 employees in factories, facilities, and offices located in 30 countries and they are listed as number 260 on the world’s largest public companies (Deere and Company, 2017). The John Deere name is linked to designing and engineering products and services that are committed to the land. With product lines that range from balers, tractors, and lawn mowers, they also have product lines for forestry services, government support, and construction.
The successful operations of the company revolve around the undertaking of strategic responses to market dynamics and performance of their brands. The company consistently applies changes to the various systems in its production line to address not only i...
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The business environment is increasingly becoming competitive and challenging. In the recent past, manufacturers have found themselves facing the threat of dwindling profit margins due to unfortunate global events such as the 2007 global financial crisis and the on going Europe economic crisis. The need to improve operation efficiency so as to ensure current and future investment yield the highest rate of return has therefore become extremely important. Manufacturers are now actively engaged in, managing their costs, Research and Development, adopting best procurement strategies, among other Actions. While such actions might eventually lead to positive results, additional business value can be achieved through proper management of the supply chain (Waymer, Ivanaj & Mussa 2009; Krivda 2004).
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.