Baxton Case
Baxton Technology Hunter Biggs
1. What is the problem that Mark Baxton is facing? What is the strategic aspect of the problem? Automotive Lift Industry:
49,000 lifts sold each year in North America, worth $54 billion at retail
16 companies in market (4 Canada, 12 U.S.) hoists are investments (last 10-13 years and range $3000-15000)
60% of industry is owned by 2 major companies (AHV Lifts and Berne Manufacturing)
There is extensive personal selling
Baxton Technology:
- In an industry where safety is an important feature, Baxton is considered a leader in the category Baxton is referred to as the Mercedes of hoists due to its design, workmanship, safety features, easy installation, 5 year warranty
- Baxton uses three types of distributors (Company sales force, Canadian distributors, and US automotive wholesalers.)
This all has led to success for the Baxton industry. In 1999 the company had an earnings before taxes of $1,348,000 off of 1,054 units. 60% of these sales came from the U.S. and 40% from Canada
The company has a market share of 2% in the United States
*Mark Baxton now has the choice to continue penetration in the U.S. and Canadian market or expand into the European market.* changing the market will incur more expenses and need more time invested. The way
Baxton will handle this could be an issue
2. What information does Mark need to know to develop a solution to the problem or address the opportunity?
Break Even (Sales and Expenses)- there will be expenses involved with developing in a new market. Baxton needs to know the previous success and sales of previous markets and apply them to the potential in the new market. how profitable is Baxton how do they deal with expenses break even, what are the expenses, what volume and sales need to happen to cover the fixed costs needed to develop strategy
Market Potential- there is risk in entering a new market without knowing what the possibilities
1. What is the problem that Mark Baxton is facing? What is the strategic aspect of the problem? Automotive Lift Industry:
49,000 lifts sold each year in North America, worth $54 billion at retail
16 companies in market (4 Canada, 12 U.S.) hoists are investments (last 10-13 years and range $3000-15000)
60% of industry is owned by 2 major companies (AHV Lifts and Berne Manufacturing)
There is extensive personal selling
Baxton Technology:
- In an industry where safety is an important feature, Baxton is considered a leader in the category Baxton is referred to as the Mercedes of hoists due to its design, workmanship, safety features, easy installation, 5 year warranty
- Baxton uses three types of distributors (Company sales force, Canadian distributors, and US automotive wholesalers.)
This all has led to success for the Baxton industry. In 1999 the company had an earnings before taxes of $1,348,000 off of 1,054 units. 60% of these sales came from the U.S. and 40% from Canada
The company has a market share of 2% in the United States
*Mark Baxton now has the choice to continue penetration in the U.S. and Canadian market or expand into the European market.* changing the market will incur more expenses and need more time invested. The way
Baxton will handle this could be an issue
2. What information does Mark need to know to develop a solution to the problem or address the opportunity?
Break Even (Sales and Expenses)- there will be expenses involved with developing in a new market. Baxton needs to know the previous success and sales of previous markets and apply them to the potential in the new market. how profitable is Baxton how do they deal with expenses break even, what are the expenses, what volume and sales need to happen to cover the fixed costs needed to develop strategy
Market Potential- there is risk in entering a new market without knowing what the possibilities