Topics: Elevator, Otis Elevator Company, Elevators Pages: 2 (506 words) Published: December 25, 2012
Major Issues
KONE, world’s leading elevator and escalator, based in Finland, was established in 1910. The firm is the fourth largest manufacturer of elevators worldwide, a leading manufacturer of escalators. They started out with the repair and sale of rebuilt electrical motors. It expanded its business to include the manufacture and sale of steel, maritime equipment, cranes, wood handling systems and clinical chemistry analyzers. By 1995, after a series of 19 acquisitions, KONE became the world’s third largest elevator company. In 1992, Otis Japan had come up with a prototype for this machine-room-less elevator. In 1993, a KONE R&D team redesigned the motor geometry and used new materials to eliminate the need for bulky, expensive components. They called it the “EcoDisc”. The major concerns before the launch of EcoDisc were:

Post-construction purpose
Up-front costs
Life-time costs
Life cycle
Service & Maintenance costs

Analysis For Resolving the Issue

The purchasing decision is complicated. The customer group is divided into 2 groups: High-rise commercial
Low-rise residential
The criteria considered are different for both. The stakeholders that will be involved in the purchase making decisions are: the owner of the establishment, the property developer, the contractor, architect, elevator consultant and major tenants for the high rise commercial buildings and the owner of the establishment, the construction company merger, architect, the building service manager and the construction company purchasing agent for the low-rise residential buildings. The EcoDisc had more usable space and the energy savings was significant as compared to other elevator. It also offered lower installation costs, faster operation speeds and freedom from frequent maintenance. The competitors felt that holding sales against the new KONE technology might be difficult, skimming price could affect revenues, they also would run the risk of KONE monopolizing the...
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