Jolson Automotive Essay

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Jolson Automotive Hoist Case Questions 1. What factors have contributed to Jolson Automotive Hoist’s success to date? Jolson Automotive Hoist (JAH) is still a young and small company with a great potential, which has established its reputation as an excellent product in the Canadian market. With plenty of room for growth in the U.S. market, they should keep their offensive strategic market plan, focusing only in this market, until they can gain enough market share. By establishing a sales office in New York and working more closely with their distributors and wholesalers they could gain more market share. JAH is a relatively young Canadian business, formed in the early 90’s by Mark Jolson. He developed the Jolson Lift which provided the following features: Easy access for the mechanics to work in the working vehicle, safety locking mechanism, easy installation and low maintenance required. After a couple of years they became the number one manufacturer of Automotive Hoists in Canada and later decided that they would penetrate the U.S. market. For this they utilized different methods for selling their product: a company sales force, a Canadian distributor and a U.S. wholesaler. Their sales force, of four salesmen, accounted for about 25% of total sales and mainly focus to service large direct accounts. The remaining 75% came from the Canadian distributor and the American wholesaler. The U.S. wholesaler also offered lift that competed with the Jolson lift. In fact, the Jolson lift only accounted a 20% of the wholesaler total sales. Jolson has been growing well in the past years, both in units sold and in revenue. At the same time the company has been able to control cost which has raised the operating profit. The contribution margin has been between 25.6% and 28% over the past three years. In the year 2000 they began to explore new alternative markets, like

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