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KONE: MonoSpace
Case write-up
KONE is an elevator company with a new and innovative product to entering the market. This company is faced with the problem of what they want to charge and how they are going to position this newest product without cannibalizing their existing product lines. Another problem the company faces is how and to whom they should market this new elevator application. The company can rule out marketing to the high rise gearless traction market because their technology doesn?¦t apply to this market, as of now. Although they are not able to market to this group the benefits of gearless traction can be used in comparison to the geared and hydraulic elevator systems. One problem that was learned from the preliminary markets was that customers worried that KONE would be able to price gauge them since they were the only ones with this sort of technology.
The existing products offer the customer a number of options. Depending on who is making the buying decision they can base the purchase on up-front costs, lifetime savings, or quality of the equipment.
Strengths:
?h No machine room that creates greater architectural freedom and more usable revenue-generating space
?h Compare to gearless technology: controlled speed, ride comfort, lower maintenance
?h Cost savings: energy efficient, less expensive electrical wiring and fused, and no oil is used
?h Lower overall construction time
Weaknesses:
?h only can be used on 8 to 13 person elevator
?h used for 12 floors or less (if machine room is to be omitted)
Positioning of this product is very important. They could market it in-between the hydraulic and the geared traction or they could positi ...