Jolson Lift Case Essay

2052 Words Oct 5th, 2013 9 Pages
The lift market in North America is divided into two main segments of In-ground and Surface. Surface lifts (two posts, four posts, scissor, and other) take up 79% of the total market in 1999, while In-ground (single post, and multiple post) occupied the rest with 21%. There were a total of 49272 lifts sold in North America and the U.S. market is 10 times larger than the Canadian market. Hoists ranged from $3,000 to $15,000, while Jolson Auto motive’s average retail price was in the upper middle at $10,990 (company received average of $9,210). Scissor lifts account for 4.7% of the total lift market with 2316.

1.) 49,272 hoists sold each year in the U.S., 1054 being sold by Jolson.
Based upon the information given, if Jolson sold 1,054
…show more content…
Lift market.
While the U.S. has a larger market potential based on cars registered, 60% of Jolson lifts are sold to Canada. Since the U.S. has larger market potential, Jolson may try to capture a larger market share in the U.S. to capitalize on the fact there are more cars in the U.S. than Canada. 5.) Trading between U.S and Canada is duty free, while Trading between Canada and Europe would not be subject to standards or tariffs.
When trading internationally, there typically are taxes, tariffs, or other duties that are subtracted directly from the bottom line profits. Since trading is duty free, Jolson would not be subjected to additional costs of doing business related to taxes and tariffs.

6.) 40% of total US lift sales is controlled by AVH, while 20% of the total U.S. lift sales is controlled by Berne Manufacturing.
Jolson wants to enter the U.S. market, but 60% of the U.S. Market is dominated by two companies, AVH and Bern. Since 60% of the market is dominated by two firms, Jolson will have to look at the available market share to see if he can effectively capture an effective percentage of the market.

7.) There are a total of 169,300,000 cars in the top 5 countries in the EU.
If Jolson was interested in entering the European market, it would be wise for him to have an estimate of the potential market before considering entering it to see if it was profitable. With 169,300,000 cars that could possibly be used by

Related Documents