29. September 2011
Baxton Technology Company manufactures surface automotive hoists which are used by garages, service stations and other repair shops to lift cars for servicing. Because of its design, quality of workmanship, safety features, ease of installation and five-year warranty, Baxton Lifts achieved a reputation as the “Mercedes” of the hoist industry and is considered a leader in automotive lift safety in Canada and United States.
There are sixteen firms competing in the automotive lift market in North America. AHV Lifts and Berne Manufacturing together held near 60 percent of market. Baxton Technology has two competitors that manufactures scissor lifts. One is the …show more content…
The European market also has a great deal fewer powerful competitors than the United States, and does not have the same types of well-established wholesalers that could push Baxton Technology out of Europe.
Baxton Technology met the marketing manager of Bar Maisse on a trade show in Detroit. They had a casual conversation about their companies and what they manufactered. The marketing manager was seeking a North American distributor for the modular aligner and other products manufactured by Bar Maisse. Phillip Baxton felt the lift would complete Bar Maisse´s product line.
In the short-term we suggest that Baxton Technology should follow a Joint Venture approach to expand its business. A Joint Venture is less risky than a direct investment but still allows for some real profit for the company as well as providing an opportunity for the company to gain experience with the European market.
Another advantage is ensuring equal power-sharing between Bar Maisse and Baxton Technology whilst also reducing costs relative to a direct investment. Furthermore, Baxton Technology would benefit from the expertise and knowledge of Bar Maisse of the European Market, especially France.
For our mid-term strategy we propose to use the existing European distribution channels of Bar Maisse to enter the market of the most important European countries (Germany, Italy and United Kingdom) carefully. If