Duncan Industries

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 21% of the total sales, 78% of the total sales where Surface lifts, due to mobility and easy install.

Basically Berne Manufacturing and AHV have the 60% of the market. The biggest company is AVH with the 40% of the market share and had annual sales of 60 million dollars. AHV produces in ground and surface lifts.

These two companies are market leaders thanks to they know their customers and have large brand awareness, also they have a very effective sales force.

4. SWOT Analysis

Strengths:

• Duncan Industries is already a well known company; they also have a reputation of being superior thanks to their designs, quality workmanship, safety features, ease of installation, and five-year warranty.

• Duncan Industries have made important investments in high-technology which gave them important benefits such as:

1. High mechanic accuracy and can be installed in less than a day.

2. It is fully hydraulic and requires minimal maintenance .

3. Safety ...

... middle of paper ...

...y product. This will position the company as a key player and will help to increase market share.

8. Operational Change 4 P´s

• Product

More research and development can help Duncan Industries to be different form their competence. Knowing the customer needs better and try to understand them better.

• Price

We think that the price should be the same. This will maintain the actual profits of Duncan industries and allow the company to expand and increase their market share in the industry.

• Promotion

Duncan Industries promotion will include the actual catalogue showing all their products, uses and prices and other helpful information to distributors and users.

• Place

The possible partner Bar Matisse offers the licensing agreement to Duncan Industries making possible to enter the European market.