1. Lauren Knott, Brian Taylor, Kelsey Baker
Duncan Industries
Lauren Knott, Brian Taylor, Kelsey Baker

2. Case Summary
Mark Duncan established Duncan Industries in 1990 in Lachine, Quebec
Duncan Industries sell surface automotive hoist
Hoist lift cars from the ground so that auto mechanics can work on the underside or tires on the car
Hoists range from $3,000-$15,000 so it is a serious investment for a business; approximately 49,000 hoists are sold each year in North America alone
Duncan is the safest and highest quality automotive hoist on the market; but also one of the most expensive
Duncan hoists mostly sold to automotive outlets that service cars, car dealers (new and used), specialty shops, and chain stores
Expanded to the United States in 1996; since then sales grew by $3,490,000

3. Case Summary Continued
Sixteen competing companies; four Canadian and twelve United States Firms
There are different types of hoists
In-ground (only 21% of hoists sold)
single-post, multiple post
Surface ( 79% of hoists sold)
Two-post, Four-post, Scissor
Only two competitors produced scissor lifts (pictured in first slide); AHV Lifts sold for 20% less than Duncan but did not provide the extra safety features; the second was a small restricted company, Mete Lifts, who only sold to California and Oregon which sold for 5% less than Duncan
Safety is an important feature to businesses purchasing the hoists because when they do malfunction they frequently have serious injuries as an outcome
Duncan Industries had developed a good name for themselves by early 2000; they had a strong reputation for good quality and customer service

4. Case Summary Continued(2)
The company saved money by having three types of distributors (a company sales force, Canadian distributors, and a U.S. automotive wholesaler) and only four salespeople plus Pierre (who handles the marketing)
Duncan Industries succeeded in the United States and so they started to consider expanding to Europe as well
The market for the Duncan Lift hoist depended on the number of vehicles in the country
Four countries in Europe consisted of more than 20 million active vehicles
There were three options for expanding the company into Europe
Licensing- giving Bar Maisse (European company) permission to produce and sell Duncan Hoists for a profit to Duncan Industries
Joint Venture- a 50/50 proposal where two companies shared the investments and the profits
Direct Investment-Duncan Industries would establish a manufacturing facility alone
The decision was left up to Mark Duncan with the advice and help of Pierre and his research

5. Problem Definition P R O B L E M
Should Duncan Industries expand the company to Europe?
If so what part of Europe should Duncan Industries expand to?
Which investment option should Duncan Industries use?

6. SWOT Hoists are fully hydraulic Alignment turn plates
Strengths
Weaknesses
Hoists are fully hydraulic
Alignment turn plates
A leader in automotive lift safety
Four patents on the machinery
Exchange rate
Hoists are a capital expense for most automotive businesses
Exchange rate
Majority of buyers are not well informed

7. SWOT Penetrate the European market Expand the North American market
Opportunities
Threats
Penetrate the European market
Expand the North American market
(Cater to New England and the Mid- Atlantic States)
Europeans keep cars longer
(More maintenance needed)
Majority of hoists sold are surface lifts
Competitors sold 60% of all hoists sold last year

8. Market Information: Consumers

9. Financial Statistics 1997-1999
1998
1999
Sales
$6,218,000
$7,454,000
$9,708,000
Cost of Sales
4,540,000
5,541,000
6,990,000
Contribution
1,678,000
1,913,000
2,718,000
Marketing Expenses
507,000
510,000
530,000
Administrative Expenses
810,000
820,000
840,000
Earnings Before Tax
361,000
583,000
1,348,000
Units Sold
723
847
1,054

10. Market Information: Competitors
North American Competitors
AHV Lifts
Is the largest U.S. firms
Annual sales of $60,000,000
Focus mainly on the In-Ground and Surface hoists
20% less cost than the Duncan Lifts
Not as many safety features as the Duncan Lifts
Mete Lifts
Small regional company; sales only in California and Oregon
5% less cost than the Duncan Lifts

11. Courses of Action
We feel it’s a good idea to do a licensing agreement with Bar Maisse
With the licensing agreement we would receive 5% sales and the contract is only for 3 years
This would give Duncan Industries a chance to get our feet wet in the European market without a long-term contract
So why not direct-investment or joint- venture?

12. Recommendations
Mark Duncan needs to research what Bar Maisse has accomplished in the past and meet with them face to face to discuss the deal in more detail
Mark and Pierre should go to a trade show in Europe to research and get more in-depth information about the market for hoists in Europe
Go to Europe open-minded, in hopes for other business opportunities