Hence, production volume could be consistent with sales volume as shown in Table A. Also can be terminated by any party with a 6-month notice. The experience includes management, marketing, operation and technology experience. Also, we ignore the inventory financing cost for Limited capacity could hamper the introduction of new product, say missing the good timing, or could lead SMC to miss the good chance to grow current brand, Swisher motor case analysis if demand for current brand increased.
Private label production would consume a certain part of the limited and valuable corporate resources. Incremental Income Table D Based on the assumption and calculation above, total incremental income can be derived as follows.
Front-engine lawn tractors are the most popular design followed by rear-engine and mid-engine models. Industry statistics show that over half of manufacturer shipments of these products occur in the four-month period from January to April. Further actions should be taken if SMC decides to accept the proposal: Furthermore, SMC should expand the newly introduced products and reduce the reliance on its old flagship product, the Ride King, which was designed in the s.
Finally, SMC should consider other potential costs. Sales trends of riding mowers were cyclical and highly seasonal.
Kits, the self-propelled push mower, accounted for 8. In the s, the unit volume remained constant with around 4, riding mowers per year. The additional revenue arising from the sales of private label may possibly increase profits in SMC. Riding lawn mower sales are very seasonal. Wayne had to decide whether or not to accept the proposal as well as the next step to grow SMC.
For example, mowers used in cutting the grass in garden offer great potential for SMC since SMC are already quite specialized in movers used by farmers. They were currently selling three main mower units.
SMC did not need to make any promotion effort to either the chain or the consumers. Capacity Analysis Table C Assume SMC could manage to arrange a smooth production without significant fluctuation to counter the seasonal delivery. ALaunching of new product: One is that the mower producer had committed two third of its current capacity to one single distributor.
This is what Wayne Swisher had been concerned for several years. With the coordination among its relevant functional area within the firm, SMC could gradually drop the whole product line of Kits if it could not improve its profitability.
Furthermore, SMC could consider vigorously promoting its product to the untouched part, the western part of US, and help to set up the national distribution channels.
On the other hand, SMC should consider further actions to develop alternative strategies if it rejects the proposal to produce the private label. EMore advertising Obviously, the introduction of the new product should be fully assisted by full-scale advertisements and vigorous promotions.
SMC can promote its products in the current geographic scope of distribution channel to expand the sales. Accept the proposal and, in the long run, develop own brand based on the experiences of private label production: Swisher Mower and Machine Company?
For example, sudden expanded production might lead to quality insurance challenges. The following table showed the detailed comparison of the percentage in total sales and total gross profits across different modes of mower together with replacement parts. The other is that the contract would be terminated midway, i.
Accepting the proposal is confronted with two uncertainties.Swisher Mower and Machine Company Case should take the distribution proposal with the Retail Merchandise Chain. The company alone isn’t receiving a large amount of sales and this opportunity is a great one for them to increase sales and receive a larger portion of market share.
Swisher Mower and Machine Company Case Analysis Company History Swisher Mower and Machine Company is located in Warrensburg Missouri. Max Swisher founded Swisher Mowers in Max began manufacturing riding mowers in Max’s ingenuity in riding mowers has not been fresh-air-purifiers.comr Mowers was the first to introduce the zero turn radius mowers, the Ride King.
Case analysis for the Marketing Problems class, Odette School of Business, University of Windsor.
Case analysis for the Marketing Problems class, Odette School of Business, University of Windsor. Create Explore Learn & support.
Get started. Log in.
Pricing. Get started Swisher Mower. Group 5 Swisher Case Max Swisher founded Swisher Mower by being lazy and using his brain. He lived in rural Missouri where one of his chores was to mow his.
Swisher Mower and Machine Company Situation Analysis A. Industry Within the lawn and garden industry, 74 percent of sales came from finished goods, such as lawn mowers, in Swisher Mower and Machine Company Case Analysis Company History Swisher Mower and Machine Company is located in Warrensburg Missouri.
Max Swisher founded Swisher Mowers inDownload