Baxton Technology Case Study

Baxton Technology - Global expansion Strategy

The Baxton Technology(BT), a Canadian automotive host manufacturer company is analyzing its feasibilities and possibilities of expansion. The Company is to decide whether to penetrate and develop US market, which is not yet explored completely by the company or to enter European markets using either of the strategies: licensing, joint venture or setting up a manufacturing and distribution facility. To be noted that the European market is huge and has no major competitors for BT, unlike in US and Canada markets. Baxton is known for its quality and is a market leader in innovation and safety. While most of the huge investors had focused on ...

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from the car manufacturing companies was crucial.

The total market was being led by AHV lifts and Berne manufacturing, who acquired 60% of total market share. The major competition for BT was from AHV and Mete lift, who manufactured acceptable safety standard lifts to ensure cost leadership in the market. The differentiator for the BT was that it manufactured products with utmost precision and high quality and were having the first mover advantage into the markets of scissor lifts.

BT does it distribution through three channels, where it focuses on direct selling with inhouse team, through Canadian distributors and wholesalers in U.S., and the aim of the wholesalers in the U.S. market was found to sell hoists in general and do not have any affinity towards Baxton's hoists. 75% of the total sales were from the distributors and wholesalers who sold at price lesser than SP.

Penetrating American Market - Alternative 1

The maximum sales are being generated by the ...

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PAPER DETAILS
Added: 7/5/2018 07:39:16 PM
Submitted By: Sehnaaz
Category: Economics
Type: Premium Paper
Words: 882
Pages: 4

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