Saurer Wolkmann Case Study

1. What is the positioning of Saurer Wolkmann in the market for textile twisting machines?

Saurer Wolkmann is a technology leader in twisting machines manufacturing. Saurer provide full service solutions for high end customers and is the market leader. Its industry leading products are created with a state-of-the-art superior German engineering and are of high quality and excellent performance.

2. How well does Suarer's positioning fit the Chinese market? What are the challenges facing Saurer in the Chinese market?

Saurer's current positioning fits poorly to the evolving Chinese market. In terms of the efficiency of the machines and quality of the products Saurer's positioning does fits the Chinese market, however it's products are over engineered for most of the market which is low end. In addition the profitable after-sale service and support which is very significant sine it helps develop relationship with customers, identify new sales opportunities and gain a deep understanding of the customers evolving needs, does not exist since in China there is little interest in preventative maintenance or annual service contracts.

The challenges facing Saurer in the Chinese market include domestic competitors who offer lower quality machines for a lower price which fits the local costumers who seek faster return of investment and show a lack of interest in high quality products. On the other hand Saurer must maintain its high-end image in the European market, therefore cannot brand itself with a lower quality product. Another challenge is the lost of intellectual property to Chinese competitors.

3. Should Saurer enter the market for lower functionality twisting machines in China? What are the major advantages and disadvantages of doing this?

Historical data and current estimations show that the textile