Peak Case Essay

1327 WordsApr 22, 20126 Pages
Problem Statement and Sub-problems: The Peak Garage Door, Inc corporate sales goal for 2004 is $12.5 million. This goal requires an increase in sales of 36 percent over 2003 projected year-end sales. A number of executives expressed concern that the distribution approach currently used by Peak Garage is not adequate meet the new sales goal. There are obstacles or sub-problems that Peak Garage, Inc must overcome to meet their projected sales goal in time to be implemented by January 2004. As mentioned in more detail later in the analysis, garage door brand awareness is low among consumers, there are too many non-exclusive dealers (carrying multiple brands) which we have the smaller proportion of sales, and 80 percent of Peak sales representative time is spent on generating approximately 30 percent of our sales. Situational Analysis (External): The residential garage industry in the United States was expected to post sale sales of $2 billion at manufacturer’s prices in 2003. Steel garage sales account for 90 percent of industry sales. Based on these numbers, Peak Garage holds a .46 percent market share in total industry sales, and a .51 (figure 1) percent of steel industry sales. The expected growth in the industry is expected to increase by 2.4 percent to $2.05 billion. The largest garage door manufacturer in the United States is the Clopay Corporation, with annual sales that exceed $400 million (20 percent market share). Peak Garage, Inc is considered to be one of the smaller regional garage door manufactures in the industry. A Peak Garage study estimated that there were 3,002 independent garage door dealers within the region with the average sales for an independent dealer is calculated at being $116,089 (Figure 2). Peak Garage’s average sales through an independent dealer are $9,200 which only represent 8 percent of regional independent

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