Baxton Technologies: Background
Baxton Technology, referred as BT hereafter, is a Quebec based company which manufactures hoists (scissors type surface) with its operations in Canada and US. It competes in the speciality shop segment particularly with shops that deals with wheel alignment. It had already developed a reputation and was known as the Mercedes of Hoists and had sold 1,054 hoists, with 60% sold in US and rest in Canadian Market.
Industry:
Total hoists sold annually in North American hoists market was around 49,000, typically purchased by new car dealers, used car dealers, speciality shops, and automotive outlets for serviced or repaired cars. The Canadian hoists market more than $54 bn at retail in 1999, servicing around 14mn cars on the roads. The cost of hoists usually ranged from $3,000 to $15,000.
Market Study:
16 companies competed in the North American market, 12 US and 4 Canadian. The In-ground hoists accounted for 21% of the market share, and 79% was contributed by Surface hoists. Two major firms controlled sales for the US markets were, AHV lifts and Berne Manufacturing. Compared to its immediate competition, the price of BT was approx 20% higher. And, the other major contributor charged 5% lesser than BT. The retail price per lift was $10,990; however, the amount received by BT was $9,210. The sales were achieved using three channels: 1. Direct selling at the retail price. ($10,990) 2. Canadian distributor at 80% of retailer price. ($8,792) 3. US wholesaler at 78% of the retailer price. ($8,572)

Problem definition:
The organization wants to exploit the various opportunities of increasing sales by either entering EU market using the ways of: 1. Licensing Agreement 2. Joint Venture 3. Direct Investment, or increasing sales in existing USA Market by opening up a branch office in New York.
Alternative Evaluation: