Topic > Duncan Industries - 1829

Executive Summary Duncan Industries is a company that prides itself on quality, innovation, safety and customer service. They offer a wide selection of high-quality lifts that include the features needed to be able to perform many different automotive tasks. Each lift is created with this particular purpose in mind and backed by an exclusive 5-year warranty. Duncan Industries' commitment to its elevators has seen the company grow at an extremely rapid rate in both the Canadian and U.S. markets. This high growth is a key component of the company's business strategy and must be maintained. There are currently three viable options for this problem. First, the company could focus its attention on improving relationships with the wholesaler in the United States, causing the wholesaler to push the Duncan Lift more aggressively. Another option would be to increase personal selling attempts made by Duncan employees in key states within driving distance of their Lancaster factory. The third option is to expand into the European market. Due to the limited information and undeveloped potential of the North American market, Duncan Industries should dedicate its resources to growing and consolidating its North American market share. Mission Statement Duncan Industries is a growing company committed to maintaining rapid volume and profit growth and continuing to be a leader in product innovation, quality and support in the automotive aftermarket industry. Problem Statement • Assess the feasibility of expanding into Europe through direct investment, licensing, or joint ventures, or intensifying efforts to expand into existing The North American market… at the center of the paper… changes After reviewing the three alternatives, it appears that, based on current information, the best course of action would be to work more closely with the US wholesaler to "push" Duncan Lift and increase its sales and work out a deal so that Duncan can sell to the eastern states of the United States directly from their factory in Lancaster. This is the best alternative because even though it doesn't have the size of the European market, Duncan has already established relationships with major manufacturers and distributors (something that has proven to be a long process) and already has facilities in North America. You will not have the capital expenditure that you will have in Europe if you follow the direct investment approach, you will not have the uncertainty of establishing new relationships or the trust in the experience and efforts of a third party company.