As a general view the challenges for each country are:
-Maintain a reasonable return on sales, improve operating efficiency and minimize service units lost to competitors - In order to maintain profitability or market share it is necessary to find ways to reduce cost. -Cost-reduction efforts were focused on negotiating with factories to lower prices, rather than look at how the country organization could also lower their cost. -Most of the local procurement patterns are habits, they have to consider changes in supply sources. -The local staff is reluctant to cahge suppliers, there is a perceive quality issue and an emotive issue of dealing with Chinese supply source. -Change in thinking attitude.
-Learn from the past than maintained it.
Problem: Japanese competitors are high technology and low cost for two reasons: First they are buying market share. Second, some parts come from Korean, Taiwan and China sources, and Otis is obliged to fully supply by their high-priced Japanese Plant. In geared elevator market medium-rise buildings Otis´s challenge they can account up of 35% of the total new demand, but they do not have product to offer because the Otis Japanese division stopped...