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
Increase the frequency of purchases by your customers. No matter how poor your current product or service, you must have some customers or clients. One key strategic dimension that you should be thinking about is how to augment and reposition your product in order to sell more to this group.
• The company has the opportunity to grow in various markets and aquire new customers such as malls, hotels, offices, and motels not only in Canada but as well as the United States.
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Opportunities include huge market, no competition for at least three years, potential huge margin, good marketing strategy.
Bodie Industrial Supply, Inc is a full service distributor of top line, brand name, new and used certified machine tools, maintenance parts and related equipments for the construction, utility and farming markets. The demand for equipment is relatively cyclical, with Bodies having a slight increase in sales to farming markets in the summer. Bodie’s has seen a huge sales growth increase in 2003-2004 of 72% and 29% in 2004-2005. This is mostly due to an increase in net sales and keeping a constant level of costs of goods sold.
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.
W. W. Grainger, Inc. is a leading supplier of maintenance, repair, and operating (MRO) products to businesses and institutions in the United States, Canada, and Mexico with an expanding presence in Japan, India, China and Panama. The company works with more than 3,000 suppliers and runs an extensive Website (http://www.grainger.com) where Grainger offers nearly 900,000 products. The products range from industrial adhesives used in manufacturing, to hand tools, janitorial supplies, lighting equipment, and power tools. When something is needed by one of their 1.8 million customers it is often needed quickly, so quick service and product
A.G. Lafley, CEO of P&G, explained this strategy through his book “The Game-Changer: How You Can Drive Revenue and Profit Growth with Innovation” (Crown Business, 2008) to explain how to make game-changing innovation drive growth on a consistent, well-paced basis. The critical factors include keeping a laser-sharp focus on the customer; establishing a disciplined, repeatable, and scalable innovation process; creating
1. Achieve an increase in the market share to 50% or above in the next 7 years