Jolson Automotive Case Analysis

Kimbell 1
Emily Kimbell
3/25/13
MK 4900
Jolson Automotive Hoist, Inc. Case
I. Situation Analysis
Industry
Size of Industry - Sales Dollars/Units
 About 49,000 hoists are sold each year in North America
 The price of a single hoist ranges from $3,000 to $15,000 making the purchase a capital investment o Using these price ranges, total industry sales can be estimated at $147,000,000 (if each hoist is $3,000) to $735,000,000 (if each hoist is $15,000)
 Hoists are purchased by automotive outlets that service and repair cars. This includes: o New-Car Dealers
 New-Car Dealers account for an estimated 30% of all units sold in a given year or 14,700 units per year. o Used-Car Dealers o Specialty Shops o Chains o Independent Garages
 The hoist industry is divided by two different types: In-Ground and Surface o In-Ground hoists require a pit to be dug "in-ground" where the piston is installed.
 These hoists are divided into two types: single-post and multiple post
 In-ground lifts accounted for approximately 21% of total North American unit sales or 10,347 units o Surface lifts were installed on a flat surface, usually concrete
 These hoists are divided into four types: two-post, four-post, scissor, and other.  Surface lifts accounted for approximately 79% of total North American unit sales or 38,925 units.
 Firms purchasing hoists are considered part of the automobile aftermarket industry o This industry is involved in supplying parts and services for new and used cars o The Canadian industry was estimated at $54 billion at retail in 1999 o The industry serviced approximately 14 million cars in Canada

Kimbell 2 o The industry consisted of the following type stores:
 Over 4,000 New Car Dealers
 Over 400 Canadian Tire Stores
 Over 100 Firestone and Goodyear Chain Stores
 Over 220 Rust Check Chain Stores
Growth Rate
 Between 1997 - 1999, total Hoist Unit Sales both grew and declined resulting in minimal growth over the three years. (Appendix 1a) o Between 1997