Baxton Case Analysis

1432 WordsAug 1, 20136 Pages
I. Factual Summary: * Baxton Technology has a reputation for quality products, primarily in the wheel alignment segment. * By 1999, Baxton had sold 1,054 hoists and had sales of 9,708,000. 60 percent of the sales were in US, and 40 percent were in the Canadian market. The total number of hoists sold in the U.S was 632 for a sales figure of $5,824,800. However, the total number of hoists sold in Canada was 422 resulting in a sales figure of $3,883,200. * Sixteen companies competed in the automotive lift market in North America; 4 in Canadian, and 12 in the United States. The industry is dominated by two large U.S. firms, AHV lifts and Berne Manufacturing. AHV lifts has 40 percent of the market share and Berne manufacturing…show more content…
Operating in Europe opens up entirely new and very large (almost U.S.-sized) opportunities for sales since most of the countries in Europe are interconnected, which means there is free movement of goods, persons, services and capital. The entry to Europe will give Baxton opportunities to reach a higher number of customers. If customers are satisfied with the superior quality of Baxton 's hoists, then the reputation of Baxton will be enriched, as a result. this might open up additional opportunities to expand further in the world. Once Baxton turns into a global corporation, the company will see an added brand value. Currently, Europe does not have any dedicated, large manufacturers of scissor lifts. However, there was only one firm in Germany that manufactured a scissor-type lift. So far, no dominant manufacturer of hoists exists in Europe as was the case in North America. Based on the number of vehicles operating in Europe presented in the case, Europe appears to be at a growing market, based on new registration numbers. The number of new-vehicle registrations is an indicator of the future vehicle repair and services needed this give Baxton an indication of whether or not their services will be profitable. Alternative 2: Avoid the European Market and stay focused on U.S market Baxton can refrain from entering the European market for now, and focus on U.S. sales

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