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Cah

By:   •  Study Guide  •  606 Words  •  December 13, 2009  •  851 Views

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Essay title: Cah

INTERNAL Strengths Weaknesses

Product Specialized Hydraulic Surface Scissor Lift Above ground only

Leader in Safety

Easy access to mechanic

Movable

Wheel Alignment Turn Plates Limited product line

Easy installation and maintenance

5 year warranty

Protection of Intellectual Property

Promotion Trade Magazines and Trade Shows Catalog, not comparative and does not increase purchase intention

Price Indicates premium Quality and Safety 20% above competition

Distribution Good direct selling skills

Poor US wholesaler relationship and resulting in poor margins for US sales

Approval by large chains to sell to individual dealers limited reach in Canada with distributor

long lead time on gaining large chain approval

Target Market Automobile aftermarket: Big retailers in wheel alignment market ( 85% of Sales)

Owner of facility is not as aware as a mechanic would be of the benefits of the Camar lift, yet the owner would make the purchase decision.

Specialty car maintenance firms who specialize in wheel alignment

New-car dealers

Positioning The highest level of Quality and Safety available in a hydraulic scissor lifts with added maintenance and installation benefits. Very specialized approach may alienate potential segments such as general car maintenance facilities and universities or trade schools.

EXTERNAL Opportunities Threats

Industry Trends Surface market is larger than in ground, 79% of total lift sales Scissor lift is the least popular of lift designs from 1997-1999

Fluctuating Exchange rates, (btw .65 to .7)

Competitors: Only 4 Canadian Firms in Automotive lift market

By 1999 exports/imports of hoists were duty free

12 US competitors

Dominated by 2 large US firms

AHV: 40% of the industry market share, US based, annual sales of 60 million, with direct selling, competes primarily on price. Has scissor lift without safety features of Camar but sells for 20% less

Berne: 20% industry market share, US based, wholesaler distribution, competes on price.

40 % of market is available to be captured by smaller firms Mete Lift, small regional company out of Oregon, sells similar lift but lacks safety features, is high quality and sells for 5% less

Opportunity to compete on features not price, and focus on surface scissor rather than in ground or surface two-post (unlike AHV and Berne)

Regulatory Europe became a single market in 1993 and all trade barriers

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