Kone Case Analysis

Kone Case Study

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Published by Rajibul Hasan Rajib

Case Analysis KONE

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ID # 001-97-6835

Regardless all the

exemplary benefits, MonoSpace™ had to deal

with some drawbacks like most of thenew product does. MonoSpace© would require a machine room if customer wants to use 16 person cabinelevator. The MonoSpace elevator is not suitable for the outdoor or penthouse installation as its drive unitrequire a temperature between 5C to 40C. Apart from these two drawbacks, MonoSpace© would faceclassic problem for being the single supplier of this kind elevator, customers may fear that they have to pay whatever KONE ask, in fact KONE had the same experience in UK 

MonoSpace© for German Market:

MonoSpace© as a new machine-room-less elevator would have a potential success in German elevatorsmarket mainly in low-rise residential elevators segment and mid-size market. The low-rise residentialelevator has approximately 74% market share of the total German elevator market. Therefore, KONEAufzug has the solid

scope to position new MonoSpace™

in the large German low-rise elevator market.

As a new product MonoSpace™ had already

extreme positive customer feedback from the other European market, here are some feedbacks

 –“Why you did not come up with

this earlier?” “At least thereis something new in the elevator industry”. Apart from these

overwhelming feedbacks, MonoSpace© hadreceived some

negatives like “single supplier issues” etc.

However, its simply clear indication that, thenew features of EcoDisk technology, especially machine-room-less, energy saving, low maintenance cost,eco-friendly would create a great appeal towards German low-rise elevators market. However the successwould depend how meaningfully and tactically KONE Aufzug can position the new MonoSpace productin German market.

Analysis on Current Market:

KONE Aufzug had strong presence in Germany which is one of the European largest elevator market inEurope

, KONE’s set up their strong footprint in Germany with 25 sales branche

s with strong sales forcesin there geographical territories across the country. KONE

’s offered

both new equipment sales as well asservice contracts for the German market. They earned approximately DM 206 million sales revenue fromGerman operations which yield DM 13 million profit in 1995.

KONE’s earned a huge percent of sales in