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Duncan Industries Essay

Decent Essays
1. Decision Problem

How to increase market share and maintain rapid growth at the same time, and where.

2. Overview

Duncan Industries sold over 49,000 hoists each year in America. They have two basic types of hoists, in ground and surface which are both service-specific. Typical consumers were automotive outlets that serviced or repaired cars, such as new and used-car dealers, and specialty shops. Additional consumers consist of chains such as Goodyear, Firestone and independent garages. The wheel-alignment market has an 85% of sales the remaining 15% belongs to general mechanical repairs.

3. Competition

There are only 16 companies in the American market, 12 national and 4 Canadian. The American companies have
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And once they have this accounts they sell them to individual dealers and operators.

Weaknesses

• American wholesalers provides to Duncan Industries with extensive distribution in the US and services its major accounts. However, the Duncan Lift is one of five lifts sold by this wholesaler and was considered a minor product in the total line. It is estimated that the Duncan Lift accounts for less than 20% of the total lift sales of the US wholesaler. DI is concerned the US wholesaler will not want to relinquish additional territory.

Opportunities

• Duncan Industries know there is a unrealized potential for expanded growth into the US market, as studies say market in the US is 10 times bigger than Canadian the opportunity would be an expansion into the US.

• Although it is not a right away priority Duncan Industries realized and keeps an eye on the European market. Research demonstrated a higher number of service repair facilities that require an innovative vehicle hoist such as the Duncan Lift.

• DI developed an information package with product, uses and prices that was distributed to trade shows throughout Canada and the US. It felt that this additional promotional awareness was a key marketing strategy in establishing the Duncan Lift as a
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