Problem Statement:
Camar Automotive Hoist (CAH) produces top quality automotive hoists. The company is currently faced with making a critical decision which may significantly effect its future operations and long term competitiveness. The president, Mark Camar has just received a proposal about the option to enter into the European market, prepared by the Camar marketing manager. Mark Camar must decide on a course of action that will maximize profits and keep risk to a minimum level.
Issues:
Camar’s current marketing strategy does not maximize market share potential. Presently, 75% of sales are generated from small businesses. Therefore, the marketing strategy must address the issue in order to be able to focus on its large volume of small business clientele. Camar is faced with making the decision of how, where and when to expand. The three feasible choices are:
1. Enter European Market through Direct Investment
2. Enter European Market through License
3. Expand Sales-force in U.S., and simultaneously enter the European Market through Joint Venture
Presently, customers are not informed about the different types of hoists sold and are unable to distinguish brand differences. Thus, promotional strategies need to concentrate on product and brand differentiation. In doing so, customers from perceiving lifts as having few product differences between them. Due to this, customers purchasing a hoist will experience dissonance reducing buying behavior.
Company Analysis:
Strengths: Mark Camar’s passion for personally engineering the Camar Lift Hoist and his extensive experience in the hoist industry are the fundamental strengths of Camar. Camar currently has an excellent reputation as an industry leader in superior safety featu ...