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Baxton

In: Business and Management

Submitted By narenpradhan
Words 679
Pages 3
BACKGROUND AND PROBLEM DEFINITION
“Mercedes of Hoists”Baxton Technology is manufacturing surface automotive hoists which are used by Service centres, Garages, and other car repair shops. Mark Baxton, president of Baxton Technology wants to keep the company on a fast growth track after the US and Canada market.Baxton Technology 60% of sales was to US with the remaining 40% to the Canadian Market. European market could be a good move but US Market sales could be also increased if the US wholesaler would push the product. And if go with European market then they have three options: Licensing to French Firm Bar Maisse, Joint Venture with Bar Maisse or Direct Investment in Europe, so which one would best suit the company.
MARKET AND INDUSTRY ANALYSIS In Automobile Aftermarket Industry, around 49,000 hoists were sold each year in North America. The market size was $150 Million.Baxton Technology has 2.1% Market share.(Exhibit 2) US hoist market is largely dominated by two US firm AHV lifts and Berne Manufacturing, having around 60% market share. Baxton Technology competed with AVH and Mete in scissor lifts, however was ahead by 20% and 5% in its sales price respectively. Their target is to have higher profit Margin rather than high sales volume. Three types of distributors were used for Baxton- Company sales force (100% selling price received), Canadian distributors (80 % selling price received) and US wholesalers (78% selling price received). Apart from this, the distribution system lacked personal selling because only 25% of the Sales were made through the company sales direct team.
EVALUATION OF ALTERNATIVE COURSES OF ACTION
US Market Potential: American market was 10 times bigger that the Canadian market, so Baxton Sales in the U.S.market could be increased in the U.S. if the U.S. wholesalers “push” their product or opening up a new sales office. This will help…...

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