Duncan Case

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Duncan Case Analysis

BUOM 485

Bak, Yvette
2/27/2013

Duncan Industry Case

History and Background:

Duncan Industries founded by Mark Duncan in 1990 in Quebec, Canada. Duncan industries stared out selling 23 patent scissor hoists in the first year and expanded to additional Canadian markets through distributors. In 1996, Duncan expanded sales into the US through a large wholesaler. By 1999, Duncan Industries had sold 1,054 hoists with 60% of the sales in US and the other 40% of sales in Canada.

Duncan Industries has become the “Mercedes” of scissor hoists in Canada and US. The two basic types of hoists are surface and in-ground, in which the Duncan Hoist competes in the surface hoist segment. The scissor hoist is an after-market product that has about 2300 sales in North America while the total hoist market has about 49,000 hoist sales each year in North America. The two basic types of hoists are surface and in-ground, and the Duncan Hoist competes in the surface hoist segment. Duncan hoist usually sold to automotive outlets that service and repair cars, dealers, and specialty shops. Duncan hoist has been placed in the Wheel alignment shops which are 85% of the sales; the other 15% of sales is in general repair shops.

Problem:

How to increase rapid sales and growth of Duncan Industries while maintaining high quality products and a high level of service to the clients in unrealized segments?

Strategic Alternatives:

1. Open a New York sales office to facilitate the direct sales to the US while growing the scissor hoist market within the surface hoist segment.

2. Add additional incentives and work closely with the US Wholesalers to increase the Duncan Hoist sales within the Hoists being offered.

3. Grow the product line into other hoist offerings. Use additional resources for production research and manufacturing for the two-post and the four-post surface market which consist of 38680 total sales in 1999 and is 78% of the Hoist market.

Duncan Industries SWOT

SWOT Analysis Part A– Internal Factors

Internal Factor| Management/Human Resources| Marketing Mix4P’s| Manufacturing/Physical Resources| Research andDevelopment| FinancialResources| Strengths| -Consistent productimprovements-Quality craftsmanship-Developedreputation for superior safety features- the ease ofinstallation-Five year warranty| -Product-“Mercedes” of the scissor hoist segment-placed in smallshops and also approved by large auto manufacturers-Priced higher thanthe 2 biggest competitors-Promoted to shops throughcatalogues and sales.| -Main plant islocated in Lachine, Quebec Canada-Direct accounts inCanada-Distributors inCanada-US Wholesalers| -3 years ofdevelopment of the scissor lift.-Four patents held.-Product improvementsalways being made| - Venture CapitalCompanies have secured investments.| Ideas forBuilding Upon these Strengths| -Qualitycraftsmanship-Existing reputation of superior offerings can be used to open the scissors market| -Maintaining andimproving current products.-add offices inNew York to increase directaccounts-Offer lower priced options to compete withcompetitors offerings.-Market scissorhoist as an alternative to surface hoist due to its variety of versions to meet variety of tasks.| -Existing potentialto open a sales office in New Yorkto shift directaccounts in the USfrom US wholesale accounts.| -Productimprovements are always beingmade, additionalproduct testing and research to developadditional surface hoist to add product offerings other than thescissor lift.| -retain additionalfinancing fromVenture capital companies to add to product offerings| Weaknesses| -Limited productline-Limited sales staff of 4 people| -Limited productline-The sales staff atDuncan industries called sales force| .Only manufacturesin Quebec Canada| -Currently Duncanindustries only improve theproduct line for the scissor lift.| -ability to attaincapital venture funds.|

| | is only 25%...
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