STRATEGY ANALYSIS of ARPAC Storage Systems Corporation (ARPAC) 91

Page 64

KSF

Importan ce

Williams Machinery

ARPAC

(15 percent of market)

(8 percent market)

Mason Lift of

(15 percent market)

Price

5

5

1

2

Brand

2

2

3

5

Customer relationship

1

3

4

5

Sales expertise level

1

1

3

5

Service skills level

1

2

5

4

35

23

34

TOTAL: (importance

of

index X performance index)

The second performer in the segment is Mason Lift. The company demonstrates that the differentiation model can work in LT cost markets if it is associated with reasonable costs. Mason Lift offers equipment at moderate prices. Most of its success is attributed to Toyota’s promotional efforts and a public groundswell of favourable wordof-mouth publicity, which allows offsetting the price at least to some extent. Mason Lift is able to maintain the best performance in the brand factor because of its association with the Toyota brand. Mason Lift’s sales expertise and customer relationship levels are the highest, due to its longest-established presence in the LT segment and its relatively low employee turnover. In summary, moderately priced products, supported by strong performance in brand and other activities, allows Mason Lift to compete effectively against the cost leaders in the segment. ARPAC’s major disadvantage is the high price of its products in a very costsensitive market. Its price disadvantage comes as a result of Nissan’s LT products. Nissan 65


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