Case Study

Case analysis

October 15, 2012

Peak Garage Door, Inc

Key Issue(s)

Create a diagram to increase their sales goal by $12.5 million in 2004 and if the distribution approach is appropriate to reach that goal rather than the previous approach in 2003.

List of alternatives

1. Increasing the number of dealers in the markets currently served by the company.

2. Development of a formal exclusive franchise program

3. General reduction in the number of dealerships without granting any formal exclusive franchise

4. Not to do any changesnothing in distribution and do a better job with the current distribution policy and network.

Analysis of the alternatives

1. If Peak Garage Doors increases the number of dealers in the markets they currently supply, the company will have more sales due to more dealers selling their products. The number of projected dealers is 100 and they will need more sales people to be able to attain this goal. The downfall to this new approach is that this is a long-term goal and they will have to spend $80,000 per each new sales person they hire per year, which can become an expensive acquisition.

2. The advantages of developing a franchise program, is that it will allow the dealers the power to take their own action with the products provided by the company in which they can sell the garage doors at their own prices and do things their way. The company also would have to increase the advertising and promotion of these new franchises so people become familiar with these stores and products otherwise the franchise program will fail. The disadvantages are they might need more than 150 dealers to accomplish this goal.

3. The pro’s of reducing the dealerships Peak Garage currently have is that they will remain selling products to the dealerships that have the majority of sales and will have to look for 50 exclusive dealerships to sell their products for the purpose of more sales and exclusivity in the market. The disadvantage...