In the long term, the joint venture will allow Camar to acquire larger profits due to broader geographical coverage, as well as sharing an equal percentage of profits. The European joint venture will be advantageous to Camar as Bar Maisse has extensive knowledge about market segments, as well as an already established supply chain.
Considerations for increasing market share, and thus sales volume, include expanding into the European market, and the option of eliminating the use of a wholesaler in nine U.
The budgets have taken into account promotional objectives for both North America and the European market. In doing so, customers from perceiving lifts as having few product differences between them. Furthermore, the research conducted in the European market will alleviate the risk of inaccurately targeting the market.
The central location of the sales force will be in the New York region. In order for Camar successfully establish a global presence in the long-run, initial market research of the European market must be conducted. Also, Camar will not be required to invest any money in marketing. Bar Maisse will provide manufacturing and marketing strategies as previously agreed upon.
Furthermore, in order to establish a functional plant in Europe, Camar would have to allot scarce time and capital into recruiting and selecting a labour-force.
Camar faces many opportunities for expansion in several geographic areas. Immediately, Camar must discontinue the use of its wholesaler within the nine states, as the company will be operating in this area through its New York sales force.
Since Camar will be directly selling to U. Enter European Market through Direct Investment: Due to the standardization of automobiles internationally, the Lift will be manufactured according to standardized criteria. Also, the European Union reduces barriers to trade among its members, allowing for increased cross-border trades.
They will reside in their home states, however, on occasion all nine employees will meet in the New York region sales office to conduct meetings and discuss sales tactics.
However, the European joint venture is prone to disagreements about investments, marketing, policies, production and other operations between both owners. The Camar Hoist is also favoured by customers because of its innovative mechanisms which allow for rapid installation procedures and minimize the need for maintenance.
They will follow the personal selling process, including prospecting and qualifying. The target market will consist of dealerships, auto service stations and garages, and businesses that specialize in automotive repair.
This strategy allows customers to educate themselves about the Lift and generate any additional questions for the sales representatives when making the actual purchase decision. Enter European Market through License 3.
Although the recommendation focuses on the U. Due to this, customers purchasing a hoist will experience dissonance reducing buying behavior. Also, Camar only offers one type of hoist, which is the Scissor Lift.
This option will not require any start up costs for Camar. The following must be considered in making the decision regarding how Camar will expand its target market: The promotional budget in the U. In doing so, consumers will perceive significant brand differences and be highly involved in the buying process.
The salespeople will emphasize the superior quality and safety features of the Camar Lift to prospective clients.
There will be a sales agent located in each of the nine states and each European country. He will be in charge of overlooking operations of the joint venture. Additionally, local sales representatives will be hired in each European country, as they have extensive cultural knowledge and language skills.
The training will emphasize Camar Automotive Hoist brand superiority, and focus on the added value the List gives to the customer. Given that the U. Additionally, in the long-term Camar will focus on expanding into the European market by entering a joint venture with Bar Maisse. Therefore, Camar will establish a sales-force only in eastern U.
Problem Statement: Camar Automotive Hoist (CAH) produces top quality automotive hoists. The company is currently faced with making a critical decision which may significantly effect its future operations and long term competitiveness.
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Camar case Camar Automotive Hoist (CAH) is located in Lachine, Quebec in Canada. The company manufactures the Camar Lift, a. Camar Automotive Hoist Case / SWOT Free Essays, Term Papers and book reports.
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Executive Summary Camar Automotive Hoist has built its reputation on a quality product in the Canadian market however in the company is facing the Words | 3 Pages Nanotechnology in the Automotive Idustry. Camar Automotive Hoist Executive Summary Introduction: With the advent of the Free Trade Agreement inthe duties on hoists between the two countries were phased out over a year period; by exports and imports of hoists were duty-free.Camar automotive hoists essay