Duncan Industry

Leo Truong

MKTG 489

MW 10 – 11:15

DUNCAN INDUSTRIES

Background & Problems definition

Duncan Industries is a company offers a broad selection of high-quality lifts that include the necessary features so that many different automotive tasks can be accommodated. The commitment of quality, innovation, safety, and customer service to their lifts has caused the company to grow at an extremely fast rate in both the Canadian and U.S. markets. The company is now looking to grow and exploring a variety of options. First, the company could focus its attentions towards expand into the existing North American Market as a way to continue the rapid growth of the company. The second option is to expand into the European market by means of direct investment, licensing, or joint venture.

Industry Analysis

The Duncan Lift is considered a scissor, surface lift. There is limited competition in the North American market, with only 16 companies: 4 Canadian and 12 U.S. In-ground lifts comprise of approximately 21% of total lift sales in 1999. Surface lifts are mobile and easier to install, and comprise of 78% of total lift sales in 1999. In North American Market, there are 146 Million registered cars in this market, which is almost 10 times the amount of cars in Canada. In addition, there are approximately 49,000 hoists sold annually in this market.

In the European Market, approximately 170 million vehicles in use in the following countries: Germany, France, Italy, United Kingdom and Spain, which represent the largest five countries in the EU. However, there is no dominant hoist manufacturer in the continent. Nonetheless, there is a single firm in Germany that manufactures scissor-type lifts. However, they sell their products mostly domestically inside of Germany.

Alternatives Evaluation

Alternative 1: Expand into North American Market

Pros:

_Already existing market, 60% in US and 40% in Canada

_Increase sales all over the U.S. Market

_No extra...