PROBLEM IDENTIFICATION:
The main problem Duncan Industries faces is how to maintain its fast pace growth and increase its market share. Duncan Industries has to choose between further expansion of the North American market, or new entry into the European market. In addition, the possibility of European expansion should be evaluated based on variety of entry options including licensing, joint venture or direct investment. Duncan Industries faces another problem related to the lack of information about the European market.
INDUSTRY, COMPETITIVE AND ENVIRONMENTAL ASSESSMENT
In North America Duncan Industries positions its product uniquely. Duncan Lift is a quality, safety product offered at higher price fulfilling the needs of specific market segment - wheel alignment service centers. Duncan Lift competes based on its features rather than price. The company is not a market share leader in the industry; however the diverse nature of the industry allows Duncan Lift to be the leader in its market segment of scissor lifts. Duncan Industries faces limited direct competition (only two other competitors offer scissor lifts with features of lesser value by those of Duncan Lift) allowing the company to exploit the segment completely leaving no or limited opportunities for the new entrants. In addition, the company uses wide variety of distribution methods (sales force, distributors, wholesaler) reflecting the needs of its customers and allowing Duncan Industries to establish a solid reputation for good service. Due to the fact that Duncan Industries has the necessary know-how, traditions, reputation, technology and distribution network, future expansion in the U.S. market is likely to help company maintain its growth and increase its market share.
European m ...