American Tool Works Case Essay examples

* Large inventory size (more than half of total assets) and low inventory turnover(less than half of the industry average).

With the shift in the end customers demographics, it would be wise for Stihl to consider alternative strategies to supplement their current reliance on independent specialty dealers. A company must always address who the end customer is, when you forget or choose to ignore who the customer is, then you tend to not be able to reach them. The marketing mix (product, price, placement, and promotion) has to be in tune with who the end customer is and what their economic situation might be. The case breaks down the changes or shift in demographics in the form of predictables and unpredictibles.

Allows for an improvement and concentration of sales-force efforts due to having more time focused on the retained dealers.

The company should target to serve the large customer base with better profit margins and also choose to serve those small customers who are willing to pay the targeted price per kit.

The company sells its products through two separate channels of distribution. Each is treated as a

Current funds allocated to advertising and sales promotion is 3% of net sales ($80,000,000) = $360,000

So-called Major domestics producers, especially Anheuser Bush, MMBC’s main competitor, are focused on economies of scale in production and advertisement and spend heavily to maintain their own sales level. They dominate the market with 42% of market share in the East Central Region (Case study - Exhibit 3)

It would also be in the best interest of the staff and faculty if they were involved in promoting a “team concept” by soliciting feedback down to the lowest level in the evaluation of newly implemented systems.

The company also reduces inventory management cost by maintaining low inventory or just-in-time inventory which is a good technique to gain competitive advantage.

penetration pricing strategy. All indications are that sales will continue to grow. In response to a

The company sells its products through two separate channels of distribution. Each is treated as a

Ackerman’s is a high manufacturing company that make use of its operational costs on a large scale ,this is something that new entrants on a small scale would not have .Economies of scale are achieved when production is increased in a given period of time .A large number of units are produced when it offers assortments of more styled items including the well-known national and international brands during the Star Deals .The low unit cost makes it difficult for the small new comes to break into the market to compete effectively

On the other hand, most of the processors payless attention on inventories available at their

Term/Jargon that I am unfamiliar with  Billing Terms to retailers (pg. 2, middle of paragraph 2)     My guess of what it means  Conditions attached to a sale?    

The power of buyer is high as there is an overabundance of retailers in the market. For instance, Zara, Gap and Uniqlo. (Johnson et al., 2014, pg 576) This implied that customers have a wide variety of stores to shop around for bargainable apparel at the best prices. This leads the buyers to switch from one brand to another effortlessly.