Major issues :
a. Many European people saw air conditioning as an luxury item which is harming environment.
b. Europeans have strong national brand preferences.
c. They are losing both potential commercial customer and the chance to reach in other parts of Europe.
d. Some of Asian produces had been able to gain penetration in Europe, largely on the basis of price.
e. Its air conditioners are fit poorly with Italian buildings, many of which lacked the duct work.
Target : “Top Four in Four” and “10/10/10 Plan ”
Alternative I : Restore Brescia’s profitability.
a. Early cost estimates were about 5 million with the most of that investment in the next 12 months.
b. By adding new features in compression chiller to make them could compete with other Asian distributors .
c. Technical progress caused higher efficiency and effectiveness
d. Exploit economies of scale to reduce average cost.
e. Strengthen cooperation with local European brands to improve brand awareness .
f. Choosing the best mix of communication, distribution, and selling channels of other European arms of Clayton industries to keep exploring new business opportunity.
Alternative II : Find new absorption chiller’s plant in Spain.
a. Technology transfer from Spain to Italy which would improving enterprise's key ability of Clayton Industries.
b. Phase our the compression chiller line and convert capacity to absorption chillers to meet the growing market.
c. Lower the factory expenses to reduce company’s overall cost.
d. Improving the sales channel by deriving synergies between the affiliated corporation.
Alternative III : Focus on efficiency measures to restore profitability and studying the various strategic options for the current crisis to get over.
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