Stihl Incorporated: Go-to-Market Strategy for Next-Generation Consumers

Author(s):  
Richard E. Wilson

Andreas Stihl AG is the world's leading manufacturer of chain saws and other outdoor handheld power equipment. Based on marketing challenges in its high-volume retail channel—mass merchants such as The Home Depot and Lowe's—Stihl's U.S. unit has narrowed its distribution system to a single channel: independent retail dealers specializing in yard maintenance equipment. This risky and highly publicized decision has proved extremely successful, raising profits, attracting more dealers into exclusive relationships with Stihl, and strengthening the brand's top-quality positioning. But Stihl management are concerned that this channel system may not fit tomorrow's demographics, dominated by homeowners from the so-called Generation X and Generation Y. The case outlines Stihl's business and channel systems and customer needs, then poses a series of questions that management believes must be answered to determine whether to maintain or move away from reliance on its specialty retailers and how to adapt its system.To understand issues related to retail channel strategy development in fast-changing consumer markets, as well as the challenges of adapting legacy routes-to-market systems to changing consumer service output demands.

Author(s):  
Richard E. Wilson

How does a mature business develop new growth markets, assuming it already has new products? That was the challenge facing The Coca-Cola Company and its global system of bottlers in the 2000s when demand for its core line of carbonated soft drinks flattened. The Australian bottler, Amatil, pinned its hopes on energy drinks, a fast-growth, youth-oriented category that was capturing headlines and share away from traditional products. To wrest control from the upstart brands that originated them, Amatil was targeting the retail context where young people congregated and formed their preferences, in pubs, nightclubs, healthclubs, and sporting events. This international case explores the challenges encountered when a mature company with considerable distribution assets, well-honed systems, and entrenched operating procedures attempts to sell into an underserved retail channel with requirements quite unlike those of the company's mainstream buyers. How does it attract market interest? How does it develop new routes-to-market without undercutting the cost efficiencies and delivery value that have earned it dominant position elsewhere? How does it win over what could be its core customers of the future without alienating today's faithful? These are just some of the questions that Amatil management was determined to solve.Understand issues related to retail channel strategy development in fast-changing international consumer markets, and the challenges of adapting legacy routes-to-market systems to changing consumer demands.


2019 ◽  
Vol 40 (3) ◽  
pp. 3-9 ◽  
Author(s):  
Marc André Baumgartner ◽  
Esther Tippmann

Purpose Strategizing in a multinational corporation requires balancing global and local strategy. The purpose of this paper is to provide some insights into how multinational corporations succeed in this endeavor. Design/methodology/approach The authors conducted a detailed qualitative investigation of the strategy-development processes at Gamma – a European multinational corporation in the materials industry. Specifically, the authors investigated strategy development in the DACH region (i.e., for the German, Austrian and Swiss subsidiaries). To collect data, they conducted interviews with key informants at the corporate headquarters and the subsidiaries and collected archival data. Findings The data revealed that Gamma had found an approach to strategy development that balanced its global strategy with local conditions, finding a suitable way to align its global and local strategies. The authors therefore unravel three key insights revolving around subsidiaries’ unique interpretations of the basic idea of global strategy, idiosyncratic strategy development processes in subsidiaries and globally and locally synchronized temporal structures. Originality/value Knowing how to balance the strategic needs of headquarters and subsidiaries allows multinational corporations to follow a general strategy while simultaneously developing a local market strategy responsive to the individual market requirements.


Author(s):  
Richard E. Wilson

Colfax Corporation was a young, privately held collection of pump-manufacturing companies from the United States and Europe. Intending to go public, it was eager to find a story for investors of how it could grow at rates faster than its subsidiaries had historically grown in their home regions and core-customer industrial markets. This case describes a singular new-growth opportunity: selling Colfax solutions into state-owned petroleum enterprises in the Middle East at a time when these producers were straining to add capacity. Designing the optimal marketing system required Colfax to weigh a complex of issues, including global resource allocation and deployment, a process for customer-relationship building, and estimates for revenue streams versus investment outlays. The design process was, in short, far more than “sticking sales rep pins in the map.” Case readers are asked to think along with the Colfax global management team in deciding, “How much can we afford to risk our current income model in order to build new capacity in a new region in a new way?”Understanding issues related to global B2B marketing channel strategy development, as well as complexities of entering unfamiliar new international markets such as Middle East oil and gas.


2020 ◽  
Vol 164 ◽  
pp. 09025
Author(s):  
Tetiana Mirzoieva ◽  
Violeta Heraimovych ◽  
Iryna Humeniuk ◽  
Olga Tomashevska ◽  
Olena Cherednichenko

The article presents a study of today’s market of medicinal plants in Ukraine. It was discovered that the world’s demand for both medicinal plants and herbal medicines is rapidly growing.Today production of medicinal plants is a promising and profitable activity. The purpose of the article is to research the level of concentration and to determine the leading medicinal plant growers in Ukraine, as well as to assess risks of collective monopolization of Ukrainian medicinal plants market. Object of the research –a pool of enterprises-producers of medicinal plants in Ukraine, according to official statistics. The assessment of medicinal plants market concentration was carried out using the following coefficients (indices): concentrationratio, Linda Index, Herfindahl–Hirschman Index, relative concentration, entropy index, market share dispersion among leading firms, variation index, Gini index, Hall-Tideman index. In order to clearly demonstrate the level of uneven distribution of medicinal plants in the market between the leading producers Lorenz Curvewas built. The assessment of Ukrainian medicinal plants market concentration and monopolization showed the signs of limited oligopolypresence. The analysis of oligopolynucleus dispersity, which determines the ratio between the sizesof individual firmscomposing it, showed the uneven distribution of market shares between enterprises-competitors. Further detailed research of the medicinal plants market will make an important contribution tothe market strategy development of this sphere in Ukraine.


2020 ◽  
Vol 10 (19) ◽  
pp. 6983
Author(s):  
Xue Qi ◽  
Heebo Ha ◽  
Byungil Hwang ◽  
Sooman Lim

Printing technology enables not only high-volume, multipurpose, low-impact, low-cost manufacturing, but also the introduction of flexible electronic devices, such as displays, actuators, and sensors, to a wide range of consumer markets. Consequently, in the past few decades, printed electronic products have attracted considerable interest. Although flexible printed electronic products are attracting increasing attention from the scientific and industrial communities, a systematic study on their sensing performance based on printability has not been reported so far. In this study, carbon black/Ag nanocomposites were utilized as pastes for a flexible wearable strain sensor. The effects of the rheological property of the pastes and the pattern dimensions of the printed electrodes on the sensor’s performance were investigated. Consequently, the printed sensor demonstrated a high gauge factor of 444.5 for an applied strain of 0.6% to 1.4% with a durability of 1000 cycles and a linearity of R2 = 0.9974. The sensor was also stable under tough environmental conditions.


Author(s):  
Mengli Huang ◽  
YULIN ZHANG ◽  
HAOWEN FAN

Online retailing provides alternative shopping channels, where the retail platform can either let manufacturers directly sell to consumers or open a self-operated channel, or even both. Regardless of sales channels, consumers often pay attention to the income gap between themselves and enterprises (named consumer's fairness concern). In this work, we explore how consumers’ fairness concerns affect the optimal decisions of both manufacturer and retail platform under different retail channel modes (single-channel mode and mixed-channel mode). The results show that consumer’s fairness concern has a negative impact on the retail price under low production cost in single-channel mode, while the retail prices in mix-channel mode are jointly determined by consumer’s fairness concern and revenue sharing ratio. Besides, if the market channel mode has not yet formed, the retail platform can choose either a self-operated channel or manufacturer consignment channel, depending on the consumer’s fairness concern level and revenue sharing ratio. By contrast, if the market channel mode has already been formed, the retail platform should make effort to reduce consumer’s fairness concern if only the self-operated channel exists, while maintain consumer’s fairness concern and revenue sharing ratio at a moderate level if there exist mixed channels.


Author(s):  
Yu Liu ◽  
Chunming Ren

Based on the measured parameters, including core power distribution, system pressure, inlet coolant temperature and flow, departure from nucleate boiling ratio (DNBR) can be calculated on-line. This paper presents a strategy to develop the DNBR online monitoring and protection system for PWR nuclear power plant (NPP). The main functions are to provide core DNBR status to operator and to replace the delta-T protection in conventional PWR NPPs. The system structure consists of two different levels respectively for monitoring and protection. There are four cabinets in each level to insure the reliability. DNBR on-line algorithm is on the basis of a modified single channel thermal-hydraulic model. A computer program was developed and verified through comparison with the sub-channel code.


Sign in / Sign up

Export Citation Format

Share Document