Problem Case Study for Curtis Automotive Hoist
How could Curtis Automotive Hoist (CAH) maintain its fast growth and prestigious brand image with expanded market share given its limited financial and human resources? Should it adopt a market penetration strategy in US or should it follow a market development strategy and expand to Europe? If it adopts the market penetration strategy, should it approach the US market through the establishment of a sales office or through enhanced joint efforts with its current distributor? If entering Europe is desired, should CAH start with licensing or joint venture agreement with Bar Maisse or through direct investment?
Key Issues
CAH manufactures and markets surface automotive hoists in North America. The company has successfully positioned its product as a superior offering and used extensive personal selling to promote and serve the product. Its strengths lie first in its superior product and the extensive product line. Additionally, CAH has design expertise and possesses four patents including one for the key safety feature. Second, CAH's sales force is essential to CAH's success. The sales force focuses on serving large ¡°direct¡± accounts and has been able to get approval from them. It established a distributor network across North America and has generated about 25% of annual unit sales. Finally, CAH's prominent reputation allows it to charge a premium when its competitors are mainly competing on price.
Despite CAH's competencies, its US distribution faces serious challenges. CAH's exclusive US distributor fails to actively promote the sales of Curtis Lift. In fact, the lift is but a minor product within the wholesaler's complete product line and accounts for only 20% of its total lift sal ...