Jolson Automotive Case Analysis

3059 Words Dec 12th, 2014 13 Pages
Kimbell 1
Emily Kimbell
3/25/13
MK 4900
Jolson Automotive Hoist, Inc. Case
I. Situation Analysis
Industry
Size of Industry - Sales Dollars/Units
 About 49,000 hoists are sold each year in North America
 The price of a single hoist ranges from $3,000 to $15,000 making the purchase a capital investment o Using these price ranges, total industry sales can be estimated at $147,000,000 (if each hoist is $3,000) to $735,000,000 (if each hoist is $15,000)
 Hoists are purchased by automotive outlets that service and repair cars. This includes: o New-Car Dealers
 New-Car Dealers account for an estimated 30% of all units sold in a given year or 14,700 units per year. o Used-Car Dealers o Specialty Shops o Chains o Independent Garages
 The hoist
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o The Jolson Lift is a scissor style, surface lift knows for its safety o The product earned a reputation as a costly, yet competitively superior product.
 Jolson Automotive Hoist, Inc only sells this product in addition to a number of versions of the product
Market Share
 In 1999, Jolson Automotive Hoist had the following market shares (Appendix 1g) o 2.15% of total hoist unit sales in North America o 2.72% of surface hoist unit sales in North America o 45.51% of scissor style hoist unit sales in North America
Competitors
Jolson Hoist competes with both Direct and Indirect Competitors.
 Direct Competitors - Jolson Hoist's direct competitors include those that sell any type of hoist and specifically those that sell scissor style hoists. o Hoist (Generic)
 Berne Manufacturing
 AHV Lifts
 4 Canadian Firms
 12 U.S. Firms o Hoist (Scissor Style)
 AHV Lift (Sells a scissor style hoist)
 Mete Lift (Sells a very similar scissor style hoist in local regions)

Kimbell 4


Indirect Competitors - Jolson Hoist's indirect competitors include any company who sells other automotive equipment