Baxton Technology Case Analysis
Strategic Marketing
Baxton Technology
29. September 2011
Introduction
Baxton Technology Company manufactures surface automotive hoists which are used by garages, service stations and other repair shops to lift cars for servicing. Because of its design, quality of workmanship, safety features, ease of installation and five-year warranty, Baxton Lifts achieved a reputation as the “Mercedes” of the hoist industry and is considered a leader in automotive lift safety in Canada and United States.
There are sixteen firms competing in the automotive lift market in North America. AHV Lifts and Berne Manufacturing together held near 60 percent of market. Baxton Technology has two competitors that manufactures scissor lifts. One is the AHV Scissor Lift, which had a different lifting mechanism without safety locking features and was sold for about 20 percent less than the Baxton Lift. The other competitor is Mete Lift, sold for about 5 percent less than the Baxton Lift.
Baxton Technology has used three types of distribution channels: a company sales force, Canadian distributors and a U.S automotive wholesaler. The company’s success to date is based on a strategy of offering a superior product that is primarily targeted to the needs of specific customers. The strategy stressed continual product improvement, quality workmanship and service. And personal selling was a key part of the strategy as well.
Define Problems
In order to continue a fast growth of the company, the Baxton Technology will meet two problems. One is developing its business in the European market and how to go about doing this. It appears there are three main strategies to choose from: a licensing agreement, a joint venture option or a direct investment. Additionally, choosing which country to develop still needs to be taken into consideration. The second problem is developing the company's business in the U.S.A. If the American wholesaler could push the Baxton Technology hoists, sales
Baxton Technology
29. September 2011
Introduction
Baxton Technology Company manufactures surface automotive hoists which are used by garages, service stations and other repair shops to lift cars for servicing. Because of its design, quality of workmanship, safety features, ease of installation and five-year warranty, Baxton Lifts achieved a reputation as the “Mercedes” of the hoist industry and is considered a leader in automotive lift safety in Canada and United States.
There are sixteen firms competing in the automotive lift market in North America. AHV Lifts and Berne Manufacturing together held near 60 percent of market. Baxton Technology has two competitors that manufactures scissor lifts. One is the AHV Scissor Lift, which had a different lifting mechanism without safety locking features and was sold for about 20 percent less than the Baxton Lift. The other competitor is Mete Lift, sold for about 5 percent less than the Baxton Lift.
Baxton Technology has used three types of distribution channels: a company sales force, Canadian distributors and a U.S automotive wholesaler. The company’s success to date is based on a strategy of offering a superior product that is primarily targeted to the needs of specific customers. The strategy stressed continual product improvement, quality workmanship and service. And personal selling was a key part of the strategy as well.
Define Problems
In order to continue a fast growth of the company, the Baxton Technology will meet two problems. One is developing its business in the European market and how to go about doing this. It appears there are three main strategies to choose from: a licensing agreement, a joint venture option or a direct investment. Additionally, choosing which country to develop still needs to be taken into consideration. The second problem is developing the company's business in the U.S.A. If the American wholesaler could push the Baxton Technology hoists, sales