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Baxton Technology Case Analysis

Decent Essays

Strategic Marketing

Baxton Technology

29. September 2011

Introduction

Baxton Technology Company manufactures surface automotive hoists which are used by garages, service stations and other repair shops to lift cars for servicing. Because of its design, quality of workmanship, safety features, ease of installation and five-year warranty, Baxton Lifts achieved a reputation as the “Mercedes” of the hoist industry and is considered a leader in automotive lift safety in Canada and United States.

There are sixteen firms competing in the automotive lift market in North America. AHV Lifts and Berne Manufacturing together held near 60 percent of market. Baxton Technology has two competitors that manufactures scissor lifts. One is the …show more content…

Joint Venture

By involving ourselves more with the production and marketing processes of Bar Maisse, and starting a joint venture with the company, we would be able to gain a far larger share of the profits of the sales of our hoists, and a far greater influence over the market compared to what we would have through a licensing agreement. With our expertise in the field of hoist repair and production, and Bar Maisse's experience with the European market, we will likely be able to gain a larger market share together than either of us would be able to alone.

Direct Investment

For Baxton Technology to make a direct investment, construct manufacturing plants and sales offices of its own in Europe, is a distinct possibility. The company has the resources to go through with a large-scale operation such as this, and doing so would allow Baxton Technology retain all the profit they make off their hoist sales. However, this would be a very expensive and risky venture, especially as Baxton Technology has no experience with the European market.

Proposal

We propose Baxton Technology choose to enter a Joint Venture with Bar Maisse to get access to the European Market. The European Market offers great opportunities for Baxton Technology because the European countries France, Germany, Italy and UK each have more than 20 million vehicles in use, with Germany having the largest domestic fleet of 44 million vehicles followed by Italy, France and the UK. The

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