The KONE Case Executive Summary

EXECUTIVE SUMMARY In 1996, global construction slumps and unhopeful return differentiation in the elevator industry resulted in significant price controversy and margin erosion. KONE developed the Monospace elevator that uses revolutionary technologies. It test merchandiseed the harvest in three European countries with varying degrees of success. KONE was to launch the proceeds as a strategical dominant of the low-rise residential elevator grocery in Germany, which was its largest country tallyet in Europe and vital to its general success. This company is faced with the chore of how they should market it without cannibalizing their existing product lines. Basically KONE have two options. They could market the product any in-between the hydraulic and the adapt traveling bag or they could position it as top of the line. Considering the decreasing boodle of KONE, I would recommend that KONE position MonoSpace above the gear handle products, market its distinctive featur es with high-end price and keep the hydraulic as their low-end model. Since there was less demand for bran-new elevator installation, KONE should decoct on profits and not on market share. In this way, the new product could neither cannibalize their existing geared hairgrip line nor their low-end market.

However, this segmentation faculty allow MonoSpace wear outside(a) its high-end geared market. But since the product could be used on the nose as 8-13 person elevators for up to 12 floors buildings, the erosion is limited. early(a) problem we learned from the preliminary markets was that customers worried that KONE would be up to(p) to price gauge them since KONE was the only on e with this sort of technology. KONE power! fulness have to provide some kind of service move to fix the problem. If you want to get a full essay, mark it on our website: OrderEssay.net

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