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