Jolson Automotive Hoist

Case Analysis

I. Factual Summary

• The Jolson Automotive Hoist is an easy to install, easy to maintain lift, that allows car mechanics to more precisely do their jobs, and is considered one of the safest lifts on the market.

• Jolson Automotive Hoist was established in Canada in 1991 and signed with a US wholesaler in 1996. Sales for 1991 were $172,500 and grew to $9,708,000 in 1999, which was made up of 1,054 lifts. Making the price of the lift around $9,210.

• Lift prices in the market range from $3,000 - $15,000.

• In 1999 60% of sales were in the United States and 40% were in Canada.

• 85% percent of Jolson sales were made to repair shops that did wheel alignments.

• In North America there are 16 firms in the hoist market. Twelve in the US and four in Canada

• Jolson Automotive earned a reputation of selling a quality product that came along with good service. And were best known in the wheel alignment market.

• Jolson's sales force is currently made up of four salespeople who in 1999 sold 1,054 lifts combined.

• Based on research, Germany is a European country that has more cars and a higher population than other European countries, as well the greatest number of new car registrations making it a good option for expansion.

• There is currently one company in Germany that produces a scissor type lift.

• In Europe there is no real leader in the lift industry.

• Italy, France and the United Kingdom are three other European countries that fall behind Germany and could be considered for expansion.

• Money spent on advertising the Jolson Lift in 1999 was .07% of Sales.

• Establishing a new manufacturing facility in Europe would be expensive and could cost up to $1,836,000.

II. Case Problem/Opportunity

Looking to continue to grow their business Jolson Automotive Hoist is looking for opportunities to increase sales and grow their market share in the lift market. Expanding operations to Europe is an option. They have seen success with expansion within the United States and Canada and wondered if this success can also be duplicated overseas. There is also opportunity to increase sales inside the United States with increased marketing and promotion of the Jolson brand. How to grow Jolson Automotives market share and increase is the problem/opportunity at hand.

III. Alternative Solutions

Jolson Automotive Hoist has five alternative solutions in this