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Jolson Auto Case Examination

 Jolson Automotive Case Analysis Essay Jolson Automotive Case Analysis Essay

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Emily Kimbell

3/25/13

MK 4900

Jolson Auto Hoist, Incorporation. Case

My spouse and i. Situation Research

Industry

Scale Industry -- Sales Dollars/Units

 About 49, 000 hoists are sold each year in North America

 The price of an individual hoist runs from $3, 000 to $15, 500 making the purchase a capital investment

u Using these price ranges, total industry product sales can be predicted at $147, 000, 1000 (if every hoist can be $3, 000) to $735, 000, 000 (if every single hoist can be $15, 000)  Hoists are purchased by simply automotive shops that support and repair cars. Including: o New-Car Dealers

 New-Car Dealers account for an estimated 30% of units bought from a given yr or 14, 700 products per year.

o Used-Car Traders

o Specialized Shops

o Chains

o Independent Garages

 The hoist sector is divided by two different types: In-Ground and Surface area o In-Ground hoists require a pit to become dug " in-ground" the place that the piston is usually installed.  These hoists are broken into two types: single-post and multiple post  In-ground elevates accounted for around 21% of total United states unit revenue or twelve, 347 devices

o Area lifts had been installed on a flat surface, generally concrete  These hoists are split up into four types: two-post, four-post, scissor, and also other.

 Surface area lifts made up approximately 79% of total North American product sales or 38, 925 units.

 Firms getting hoists are thought part of the automobile aftermarket industry o This kind of industry is involved in supplying parts and services achievable and used cars to The Canadian industry was estimated for $54 billion dollars at selling in 1999 um The industry serviced approximately 14 mil cars in Canada

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o The industry contained the following type stores:

 Over some, 000 Fresh Car Sellers

 More than 400 Canadian Tire Stores

 Over 100 Firestone and Goodyear Chain Retailers

 Above 220 Rust Check Sequence Stores

Growth Rate

 Between 97 - 1999, total Hoist Unit Revenue both grew and declined resulting in minimal growth in the three years. (Appendix 1a)

to Between 1997 - 98, unit product sales increased simply by 4. 05%

o Between 1998 - 1999, unit sales reduced by 1 ) 8%

 Between 97 - 99, In-ground Hoist Sales both grew and declined causing minimal progress over the three years. (Appendix 1b)

o Between 1997 -- 1998, unit sales increased by 15. 89%

to Between 1998 - 99, unit product sales decreased by simply 14. 55%

o Development in Multiple Post Sales in 1998 (37. 68%) caused the the overall progress

 Among 1997 - 1999, Area Hoist Sales grew above the three years (Appendix 1c) u Between 1997 - 1998, unit revenue increased simply by. 67%

o Between 98 - 1999, unit product sales increased simply by 2 . 35%

Competition

 Sixteen corporations compete in the automotive lifestyle market in North America. This consists of:

o 4 Canadian organizations

o doze US Firms

 The industry may very well be an oligopoly as two US businesses (AHV Elevates and Berne Manufacturing) dominate the sector.

o With each other these firms account for 60 per cent of the industry

o AHV Lifts are the cause of 40% from the market or perhaps $60 , 000, 000

 AHV Lifts provides a complete brand of hoists yet focus primarily on the inground market as well as the two-post area market.  AHV Take you competes upon price and is the only firm that experienced its own direct selling force

to Berne Manufacturing accounts for 20% of the market

 Berne Manufacturing focus primarily on the in-ground industry and the two - post surface marketplace.

 Trompe Manufacturing competes on selling price and utilizes a combination of wholesales and organization salespeople.

 The remaining companies were companies that managed in a regional market and offered a limited product line

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Company

Size and Sales / Growth

 During the 1st year of sales in 1991, Jolson Vehicle sold twenty three units which usually equated to $172, 500.

 By simply 1999, firm dollar product sales had boost over 5500% to $9, 708, 1000 and improved over 4400% to 1, 054 units. (Appendix 1d)

 Between 97 - 99, dollar and unit product sales have elevated each year. (Appendix 1e) o The product sales growth rate has increased by a...