Us And The European Union Markets example essay topic
578 words
Executive SummaryCamar Automotive Hoist has built its reputation on a quality product in the Canadian market however in 2000 the company is facing the problem of sustaining future growth of its business. In an attempt to address this need of sustaining growth we recommend that Camar Automotive Hoist clearly defines its position as a safe and convenient scissor lift producer on international wheel alignment markets; and transfers its focus mainly on the US and the European Union markets. Our suggestion is to spotlight the US market by working closely with the wholesalers instead of using a direct sales-force; while exporting products to Europe by means of indirect exportation instead of through other ventures. By doing this, the company will efficiently allocate its resources and achieve its goal of sustaining growth gradually with low risks.
The Canadian market potential is limited thus we believe that US market is a quick growth opportunity for us immediately with low risks while exploring the EU now will allow us to search for long term future growth. The implementation of our strategic plan for the US market is to build our brand image with to the wholesalers by giving incentives to their representatives for working hard and selling our products. For the EU market, we will find distributors who are familiar with the market and familiarize them with our product. Recommendation For the next fiscal year we recommend that Camar Automotive Hoist maintains their status in the Canadian market while transferring its focus on expanding the business internationally. It is our belief that it will sustain growth by concentrating on the United States market and trying to export to the Europe Union by distributing the scissor lift through international intermediaries. Camar Automotive hoist appears to have a competitive advantage in the scissor lift segment due to their product differentiation strategy in the US market.
It is this US market in which there are small number of competitors within that segment, none of which can provide the same safety features and product quality. We will focus on selling the scissor lift to the services that deal with wheel alignment. Smaller accounts for these service providers will be handled by the wholesalers with our aid since they have already built a line with communication with them. The wholesaler is a an important resource for selling our product in the US and thus working closely with them we can ensure they meet our objectives for sustaining the growth of our business. By means of a push strategy and maintaining a good relationship with the wholesaler we can tailor the wholesaler's services to meet our needs. For the European market, we recommend exporting the hoist only as a research tool for examining the demand for our product.
We see international distributors as a good source of reducing the risks that others ventures may bring. Many international distributors already have distribution channels in place and we make use of these to sell our lifts. We can take advantage of this distribution system without forgoing future growth opportunities. Our concern is not which European Union we should sell the lifts to because we only want to examine the demand for our lifts and as such are treating the EU as one market. After examining the demand for our product, we can then analyze the potential feasibility of the market.
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