Loading presentation...
Prezi is an interactive zooming presentation

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

CAH Case Study


Louise Nguyen

on 8 January 2016

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of CAH Case Study

Business growth strategies and investment options for CAH

Strategic - Finding the best growth track for the company

Tactical - Further analyze on European market and the available options
U.S Market
North America
EU Market
Marketing Mix
North America
Primarily focus to expand North America market
Thank you
Case Study
Financial Analysis
North America

North America
Set up a Direct Sales Team in U.S (New York office)
'Push' U.S wholesalers to sell Camar Lift
European Market
Licensing - Receive 5% Royalty
Joint Venture - 50% Profit Sharing
Direct Investment - 100% Profit
- Required Cost: $1.5 million
- Variance 20%

10x bigger than Canadian market
Camar Lift is a minor product in US wholesaler's total line (accounts for less than 20%)
Eastern states are closer to the factory in Canada
CAH receives 78% of the selling price from wholesalers
Positive Net income & Constant GPM
Low profit after 10 years in business
Sales team (4 persons) contributed 25 % of the revenue in 1999
Direct sale has a contribution margin of 40%
CAH specialized on Surface Hoist (85% revenue from Wheel Alignment, 15% from General Repairs)
European Market
No dorminant manufacturer in Europe
More vehicles equals to greater number of service and repair facilities which vehicles need to be hoisted
1 German firm manufacturing scissor lifts
Lack of knowledge on European market
Well understanding of market & consumer behaviours
Limited data on EU competitors
+ Lowest risk
+ Save resources on marketing expense
- Less control over the business growth
- Small profit to serve a "fast growth" track
Joint Venture
+ Much higher return
+ Spread the risks between CAH and Bar Maisse
+ Gain share and awareness in EU market
- Expense on marketing and distribution efforts
Direct Investment
+ 100% profit
- High risk due to lack of understanding on the market
- High cost (1.5 million investment)
Profit & Loss Analysis
Small market share!!
Step-up commission plan for the wholesalers
Build strong 'aftersales services' team as a USP
Set up a direct sales in New York
Promotion plan
Up to 400 units sold: 22% comission
401-600: 23%
> 600: 25%
Provide excellent service to differentiate from competitors
Direct sales force to a 80-20 ratio: 7-8 pax for Wheel alignment, 2-3 pax for General Repairs
Discount Plan (e.g. Buy more than 2 get further discount)
Sales discount for immediate Trade-in of existing hoist
EU Market
Joint venture
5-year JV agreement with Bar Maisse or an alternative company
Manufacturing technology (CAH)

Admin + Distribution (Partner)
Marketing Plan
Product Training
Direct Marketing
Trial products to various repairs shops and chain
Full transcript