Marketing of MonoSpace Case Study Example | Topics and Well Written Essays - 2250 words

Marketing of MonoSpace - Case Study Example Hatala is contemplating the following issues: Political: 90% of Kone's sales come from international markets. This makes it very vulnerable to political stability in its global markets for example Italy is one of the markets of Kone and elevator regulations are governed in Italy by parliament. Thus , to bring MonoSpace i.e. an elevator without a machine room in compliance with standards , it would require an act by the parliament. Economical: The performance of elevator industry is directly proportional to the performance of the construction industry. The construction industry has maximum potential in developing countries rather than the developed countries. The reason for this is that the developed countries have maximized their growth potential whereas the developing countries would require heavy spending on construction to build malls, offices and other infrastructure. Thus, the most economically feasible regions for Kone products would be the less developed Asian and Australian markets as compared to the developed European and EU markets. Social: It can be argued that the MonoSpace elevators are a hard sell since it requires a unanimous decision of people from different backgrounds for e.g. the owner might be affluent and influential wanting perfection in the looks and features of the elevator, the contractor would be worried about the cost benefit analysis and the property developer would be thinking about the cost saving versus the benefit of space saved. Technological: elevator market is a technologically driven market. However, technology that is being applied is at the back office rather than on the consumer side. The consumer is only impressed by the ride comfort and speed of the elevator. The customer i.e. the owner investor or the property developer, contractor etc would be interested in the performance (maintenance cost, Hazards involved), initial investment and the space that is being used by the elevator machine room. This space is rendered useless for the owner since the elevators are using it. The reason behind the margin erosion phenomena is that the features directly impacting the customer (the owner, contractor and property developer) are similar by all the various competitors and there is not much differentiation in the end product. Gearless Traction Gear traction Hydraulic 10% 30% 60% Commercial Buildings High rise Less than 6 floors Low rise Legislative: In France, Kone had received approval only for ten installations. It can be deduced from this that having a machine room less elevator is a benefit provided to the customers however, it has widespread concerns and ambiguities and customers as well as the various governments would like to test the new MonoSpace product first for reliability before letting it be installed all over their regions. Environmental: Unlike the hydraulic elevators, which use two hundred plus liters of oil,