What is the problem that Mark Baxton is facing? What is the strategic aspect of the problem?
Baxton Technology goal is to maintain its faced paced growth and its brand image. In order to accomplish this, Baxton must decide whether or not he should look for opportunities in the European market for any entry options available, or instead if he should remain focused expanding sales in the U.S market. Mark Baxtons strategy is based on offering a superior product that is primarily targeted to the needs of specific customers. If Mark decides to enter the European market he must decide on how to go about doing this. The main strategies he will have to choose from: a licensing agreement, a joint venture, or opting for a direct investment. Additionally, he will have to choose which European countries to develop in. His second option would be to continue expanding his market sales in the U.S. In order to do this Mark needs to come up with strategy for the American wholesalers to push for the Baxton Technology hoists.
What information does Mark need to know to develop a solution to the problem or address the opportunity?
49,000 hoists were sold each year in North America. 30% were purchased by new car dealers. The major players in the market are AHV Lifts and Berne Manufacturing which accounted for approximately 60% of the sales.
In North America Baxton has a market share 2.1% (49,000 total hoists sold in North America/1054 units sold by Baxton Technology) based on exhibit 2, and a sales volume of 6%. It is evident the distribution system needed to engage in intensive personal selling since only 25% of sales was through company sales force.
16 companies competing in the market (4 Canadian and 12 U.S firms)
Key indicator for potential market is the number of passenger cars and commercial vehicles in use in a particular country.
Estimated of 85% of company sales were to the wheel alignment market in service centers like Firestone, Goodyear, Canadian...