Baxton Technology Essay

1877 Words8 Pages
I. Factual summary • Unexplored US market. • Direct sales force comparatively low. II. Case Problem/Oppurtunity How can Baxton technology maintain its fast paced growth and its brand image with expanded market share given its limited financial and human resources? Should it adopt a market penetration strategy in US or should it follow a market development strategy to expand its business in Europe? If it adopts the market penetration strategy, should it approach the US market through the establishment of a sales office or through enhanced joint efforts with its current distributor? If entering Europe is desired, should Baxton technology start with licensing or joint venture agreement with Bar Maisse or through direct investment? SWOT Strengths • Superior in design, quality, ease of installation, safety features and five-year warranty over its competitors. • Four patents on the Baxton Lift. • As of early 2000,Baxton Technology had developed a reputation for a quality product backed by good service in the hoist lift market, primarily in the wheel alignment segment. • The sales force is knowledgeable enough to sell, install, and service the units. • The company sells its products based on the specific needs of its customers. • Baxton technology distributes a catalogue-type package with products, uses, prices and other required information for both distributors and users. Weaknesses • Lifts sold by baxton technology are 5- 20 percent more expensive than its competitors. • Manufactures just one type of lift as compared to its competitors. • The sales force accounted for only 25% of the sales annually. • The distribution network of the company is not vast. Opportunities • US market has unrealized
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