Baxton Tech

Matthew Chiappane

Baxton Technology Case

4/16/14

1. What is the problem that Mark Baxton is facing? What is the strategic aspect of the problem?

The company’s president, Mark, was thinking of ways to continue the rapid growth of the company that they had been seeing for the past few years. The main possibilities he saw was European Market penetration or greater U.S. Market focus. This problem gives Mark a great opportunity to expand his business into a internationally known product. The expansion should hopefully increase sales for the company and not harm the companies imagine.

2. What information does Mark need to know to develop a solution to the problem or address the opportunity?

The key indicator of the potential market for the Baxton Lift hoist was the number of passenger cars and commercial vehicles in use in a particular country. The number of cars was an important indicator, since the more cars are in use meant a greater number of service and repair facilities that needed vehicle hoists – potentially the Baxton Lift.

3. Which alternative would you recommend Baxton Technology pursue: 1) greater penetration of the U.S. market, or 2) entering Europe? Explain your answer.

I suggest Baxton Technology to pursue the European market and work with Bar Maisse in a joint venture. The fact that Europe is a single market with any major one competitor this leaves an untapped market that Baxton Technology can take over.

4. If Baxton were to enter the European market, what entry strategy would you recommend? Why?

I suggest that Baxton Technology try to follow a joint venture approach for its expansion plans given that it has more advantages than the other 2 options-it is less risky than going it alone with direct investment. And it also ensures more equal power sharing between Bar Maisse whilst also reducing costs. Baxton would also benefit from the expertise that Bar Maisse has of the market in Europe already.