Otis Case Study

Topics: Elevator, Otis Elevator Company, Management Pages: 4 (1351 words) Published: September 28, 2010
DES4170 Global Logistics Management
Team 1 Paper Topic: Otis Elevator

Q1. What kind of company is Otis? The Otis Elevator, a subsidiary of the United Technologies, was founded by Elisha Graves Otis. Ever since the first ‘safety-brake elevator’ being sold in 1853, Otis has been the leader of the elevator industry for more than 150 years. The core business of Otis is to design, manufacture, install elevators, escalators and moving walkways and provide services worldwide. With its engineering headquarters located in Farmington, Connecticut, its facilities cover some Asia and European countries such as Japan, China, France and Germany. Otis is an international business with worldwide approach of markets and employees over the world. By 2010, around 85% of the 62,000 employees work outside the United States and its products cover more than 200 countries Throughout time Otis has undergone several transformation stages which push Otis from simply a product-selling company to a customer-focused giant providing total solutions to its customers. Otis aims to become the recognized leader in service excellence among all companies, not just elevator companies, worldwide.

Q2. What are the sources of income of Otis? As an international business, Otis earns income worldwide. By 2006, the revenue of Otis reached 10.3 billion USD in which 80% of it was collected outside the United States with customers include universities, hotels, hospital, airports and convention centers. Otis earned revenues mainly from two ways: selling new units of products and providing maintenance services. In more mature markets like some European countries, service accounted for about 75% of profits where in emerging markets like China, the profits are almost entirely built on new sales. As the United States and Western European elevator markets were mature enough that the growth in new elevator sales now relies mainly on emerging economies. This can be seen by 62,000 units of elevators and...
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