...KONE: The MonoSpace Launch in Germany Case Study Problem Statement: By 1996, KONE’s financial condition in Germany had deteriorated compared to previous years. Forecasts were bleak indicating little to no improvement for the near future. KONE business director, Raimo Hatala anticipated the launch of KONE’s latest offering, MonoSpace to improve the company’s financial position. Conversely, as initial test markets began, fears about the product’s ability to master the German market were raised. Hatala contemplated a successful entry strategy that would position the product appropriately and permit the company to leave a durable impression on the German market. Before the launch of MonoSpace in Germany, it was test marketed in select countries. Merely 40 units were sold in France although 300 were expected, even worse, no units were sold in the United Kingdom. The market became saturated; the construction boom terminated abruptly and demand for elevator gear was projected to fall by 15 percent. Competition for new installations was intense, large companies sold their equipment at or below cost to customers. Service contracts were commonly closed with companies that originally installed the equipment. Six major companies dominated the German market in 1995: Schindler, Otis and Thyssen, with KONE placing fourth. 150 small local companies, as well 30 mid-size players comprised the total market share. This resulted in a fragmented market. The largest construction...
Words: 684 - Pages: 3
...training be harnessed to improve international horizontal communication in an MNC? * * They analyzed a Finland based MNC (Kone Elevators?) where the corporates official language is English. * * The Reasons were they wanted to gain in-depth understanding of different ways communication goes between subsidiary staff (lower staff) in different countries. * * * Interviews: * * The interviews were with Kone staff, and there was an analysis of the company’s language and communication training program. * * The interviews were made with levels 1. Top management 2. Middle management 3. Operating management * * The Interviewees were from different countries (Europe, Mexico, and the far east.) and the interviews were spoken in different languages depending on the nationality who they were asking questions to. * * The Kone key informants (person who gives information to others) where interviewed on the telephone and email: 1. The specific role that language is perceived to play in horizontal communication. 2. Language training in Kole * * Those informants intervewees represented: 1. Human resources 2. Language training 3. Management development 4. Technical training 5. Customer Service * * * The company: * * Who is Kone Elevators? * It is one of the leading business in the world for elevators and escalators. * In 2000 the companies net...
Words: 273 - Pages: 2
...TURKU SCHOOL OF ECONOMICS 11 Comparison of internationalization process of Finnish firms Similarities and differences Submitted by: Sarada P Sahu Student Number - 601502 Table of Contents Introduction 3 Internationalization process of the Raisio group 3 Internationalization process for Jaakko Poyry Group 5 Internationalization process for Kone elevators 7 Comparison in the internationalization process of firms 8 Similarities 8 I. External environmental conditions: 8 II. Leadership and top management: 8 Differences 9 I. Strategy for Internationalization 9 II. Outlook of the company 11 III. Organizational and business structure: 12 Conclusion 13 Introduction The study of the Internationalization process for Finnish firms has been quite interesting in terms of the variety of the methods used by the companies to do so and in the nature of the learning that can be gained from the same. While studying about processes and the tactics being used by the companies’ one also has to pay importance to the external environment in terms of the economy, government and social and cultural factors that play a very important part in the decision making during the internationalization process. The major factors that have led to the internationalization process in Finnish firms can be classified into five major categories as mentioned. The first factor is the competence development in individuals and exploitation of the critical events that occur in the world...
Words: 4213 - Pages: 17
...CAN FOR KONE : THE MONOSPACE Launch In Germany. SUBMITTED BY RAJESH KUMAR ,PRAVEEN & SONY EEPM : 04 IIMK Nov 1996 Raimo Hatala- Director of Konie Construction Industry slump, Low Differentiation among competiton, lead to low pricing and low margin in the Industry. Margin of Kone came down to 6% of turnover in 1st 8 mths of 1996. New Revolutionary Pdt- MONO SPACE. Concern of Raimo Hatala Size of Monospace in Germany.How to Price & position Monospace.How will it canabalize Sales of KoNes Existing Low ise elevators.Launch strategies? Elevator Industry: Mainly dominated by 5 companies..New Equipment mkt accounts for : 9 Billion Dollar & Servicing mkt for : 13 Billion Dollars . 80% of all service Contract were given to Original equipment manufactures. Elevator Technology Gearless-10%(High speed – high rise commercial building)Geared Traction-30%(Low raise building).Hydraulic -60%(50% low cost than Geared transaction But high on oil consumption) Machine Room Requirement Gearless Elevators: 11-15 Square meters, Geared Traction:11 Square meters,3 Fixed Placement option, TOP OF THE SHAFT (PT) LOWEST FLOOR(PU):Expensive because of complex roping arrangement. Slightly above top floor & to the side of the shaft(PS):Most expensive & least Common. Hydrulic Elevator machine room(PH): 5 square meters Total elevator Cost: 50% Equipment+50% for construction of shaft /machine room/Instalation cost. About KONE: Established in 1910 in...
Words: 1060 - Pages: 5
...1. KONE has targeted MonoSpace directly at Europe’s largest new-equipment market segment: low-rise residential elevators. Put yourself in Hätälä’s shoes and develop a detailed marketing plan for launching the MonoSpace in Germany. Kone was to launch the MonoSpace in the low-rise residential elevator market in Germany, which was its largest country market in Europe and vital to its overall success. 96% of elevators purchases in GER Kone has two real options: • They could market the product either both lines together MonoSpace and the hydraulic and the geared traction • They could position it as top of the line. Set a price for the MonoSpace (to facilitate comparison with prices of existing products as given at the bottom of case page 4, price a low-rise, 4-floor elevator) and specify clearly how it is to be positioned relative to the current product line (PH, PT, PU, or PS). MonoSpace fits relative to product lines. Based upon the above mentioned two options of MonoSpace launch plan, KONE can have the following two strategies to position MonoSpace in the elevator market, so that it should not cannibalize its own products and should be differentiated among its competitors. • Approach 1: Rather than adopting price-skimming strategy in extremely sensitive German market, KONE should price the MonoSpace similar to products offered by SCHINDLER and OTIS, but emphasize MonoSpace benefits to customers. • Approach 2: KONE should position MonoSpace above the...
Words: 1071 - Pages: 5
...Problem Statement: By 1996, KONE’s financial condition in Germany had deteriorated compared to previous years. Forecasts were bleak indicating little to no improvement for the near future. KONE business director, Raimo Hatala anticipated the launch of KONE’s latest offering, MonoSpace to improve the company’s financial position. Conversely, as initial test markets began, fears about the product’s ability to master the German market were raised. Hatala contemplated a successful entry strategy that would position the product appropriately and permit the company to leave a durable impression on the German market. Before the launch of MonoSpace in Germany, it was test marketed in select countries. Merely 40 units were sold in France although 300 were expected, even worse, no units were sold in the United Kingdom. The market became saturated; the construction boom terminated abruptly and demand for elevator gear was projected to fall by 15 percent. Competition for new installations was intense, large companies sold their equipment at or below cost to customers. Service contracts were commonly closed with companies that originally installed the equipment. Six major companies dominated the German market in 1995: Schindler, Otis and Thyssen, with KONE placing fourth. 150 small local companies, as well 30 mid-size players comprised the total market share. This resulted in a fragmented market. The largest construction companies controlled 20 percent of the market, while...
Words: 450 - Pages: 2
...CASO KONE ANÁLISIS DEL CASO El caso Kone es un caso sobre el lanzamiento del elevador MONOSPACE en el mercado alemán. La economía se encuentra en contracción y el producto ya ha sido lanzado en tres países de Europa teniendo diferentes experiencias en esos mercados. CASO KONE ANÁLISIS DE LA SITUACIÓN EXTERNA REGION ENTORNO ECONOMICO CONSTRUCCION SE DESPLOMA EN LA REGION POCA DIFERENCIACION DE OFERTA DABA LUGAR A EROSION DE PRECIOS Y MARGENES ALEMANIA ENTORNO ECONOMICO CONSRTUCCION EN CRECIMIENTO DESDE 1988 POR LA REUNIFICACIÓN DE LAS ALEMANIAS MERCADO DE NUEVOS ELEVADORES CRECIO DE 8000 EN 1988 A 15.500 EN 1995 (94%) EN 1995 SE DETIENE EL CRECIMIENTO Y VA A CAER UN 15% AL AÑO 2000 MERCADO CARACTERICTICAS: DOMINADO POR LA CONTRUCCION RESIDENCIAL 1995: 74% EN BAJOS EDIFICIOS Y NO CAMBIA EN LOS PROXIMOS 5 AÑOS TIPOS DE ELEVADORES HIDRAULICO: 60% DEL MERCADO DE BAJOS EDIFICIOS CON ENGRANAJES: 40% (DOS TERCERAS PARTES DEL TIPO CARO PU : MAS CARO QUE ph) PARTICIPACION DE MERCADO: NUEVO Y EN SERVICIO 2. SCHINDLER SUIZA : 19,4% - 13,3% 1. OTIS USA: 11,6% - 11,3% THYSSEN ALEMANIA: 12,9% - 12,4% 3. KONE FINLANDIA: 9,2% - 4,9% KONE POCA PARTICIPACIÓN EN SERVICIO MERCADO CARACTERISTICAS: COMPETENCIA GLOBAL Y FUERTES EN MERCADOS DOMÉSTICOS NEGOCIO EN DOS SECTORES: NUEVOS EQUIPOS $9 BILLONES AL AÑO SERVICIOS: $13 BILLONES AL AÑO DEMANDA EN 1996 : CONTINENTE EUROPA 78.000 38% AMERICA 40.000 19% ASIA Y AUSTRALIA 90.000 43% TIPO DE ELEVADOR: ALTURA EDIFICIO BAJO: 78% MEDIO: 16%...
Words: 2527 - Pages: 11
...KONE: The MonoSpace Launch in Germany Nature of the Situation: KONE Aufzug is the Germanic branch of KONE from Finland. During November 1996 Raimo Hätälä, the New Elevator Business director, was planning to launch a new product in the low-rise building market. The elevator industry in Germany was highly competitive and mature. From 1995, when the construction boom ended abruptly, until 2000 they expected the demand to shrink by 15%. This provoked the prices to fell between 5% and 7% in 1994 and 1995, generating loses for Schindler and Otis (two of the six major competitors in Germany). The German low-rise building market was divided, as in other European countries, in geared traction technology (PU and PT), and hydraulic technology (PH) that accounted for 8% and 92% respectively. KONE’s new product, MonoSpace, was mainly characterized for its new technology, the EcoDisc, which provided a more comfort ride, did not need for a machine room, and reduced energy consumption. Before the launch of MonoSpace in Germany, it was test marketed in France, United Kingdom (U.K.) and The Netherlands. In the latest, MonoSpace was a complete success. It gave higher profits and 62% of the low-raise market (up from 52%). But in France only 40 units were sold of the 300 expected and in U.K. no units were sold during the first month after launch. Results that gave Hätälä cause for concern. Finally, a pre-launch had been done: During November 1995, 4 PH customers converted their orders to...
Words: 335 - Pages: 2
...Case Preparation Questions The case preparation questions are intended to help you identify and address the key issues in the case while preparing the case analysis note for each case before the discussion in the class. Session No & Date 1&2 PV Technologies Inc: Were they asleep at the Switch? 1. What could be the reasons for the unfavorable evaluation of PV technologies by Greg Morgan? 2. Evaluate alternative course of action available to PVT to gain favorable evaluation by Solenergy for the Barstow Project? 3. What short term and long term policies and processes should PVT develop and implement to effectively improve its marketing programs? 3 Kunst 1600 1. What are the major, quantifiable value and price elements associated with the Kunst 1600? What additional value placeholders, elements not presently quantified, merit consideration in your value model? Construct a customer value model for the Kunst 1600 in the residential AC, home refrigerator, and light commercial refrigerator repair market segments. Using your value model, select a target market segment(s) for commercialization efforts. Justify your choice. Case: Preparation Questions 2. 3. 4. 4 5. Write a value proposition for the Kunst 1600 for the target market(s). SAP: Building a Leading Technology Brand 1. What should SAP stand for? What is its brand promise? 2. Would you make any changes in the branding elements? SAP brand architecture, logos? 3. How can SAP ensure consistent messaging and consistent...
Words: 703 - Pages: 3
...MIB International Marketing Kone MonoSpace Case (for week 8 in-class discussion) For your consideration, but don't limit your exploration, analysis & recommendations to: This is a complex case with a lot of moving parts. It is usually used in the 2nd year of a 2-year MBA program, and often in either the capstone strategy course or an upper level marketing course. We are going to try to limit our analysis and discussion to a few of the key issues. You are not limited to addressing the questions found below, rather include anything else you feel to be important. • • • How important is this product launch in Germany for Kone? What are the implications for the company and it's future? What can be learned and applied from the prior launches in the 3 other countries? How does Germany's market differ and what approaches can be used to better ensure success there? This is a new product, and quite different from existing products. Different is not always better, and some markets are sometimes slow to adopt innovation. Summarize the new features and benefits for each market segment and DMU. How would you position the MonoSpace for launch in the German market? Which (who) are the major customer segments you think will respond favorably? Closely related, how would you price it? What are your pricing objectives and goals? (this is the heart of the case, explain and justify your choices here) How might Kone's competitors react to this product launch (based on your pricing and positioning...
Words: 932 - Pages: 4
...for launch the MonoSpace® in Germany is using low price to gain market share. This suggestion is based on the following reasons: First, the Germany market is shrinking. The expect market of Germany in year 2000 is 4000 renovating unit (26% of 15,500 unit in 1995) and 13,000 new unit. (85% of 15,500 unit in1995) Since ј of the expected market will be renovating projects, which cannot utilize the most significant strength of MonoSpace® (No machine room) I suggest we split the marketing strategy of MonoSpace® into two parts: renovation market and new equipment market. For renovation market, property developer, who primly concerned with the overall cost, will be the focus customers. We will emphasis the long-term cost saving for replacing an old elevator to a MonoSpace®, such as better energy saving benefit and lower maintain cost. For new equipment market, we will focus on architects, because most small contractors rely on architects to select elevators. Thus, property developers, general constructors, and architects will be our target customers. Second, mid-size player and “cowboys” count for a 35.5% German elevator market share. They are our main competitors in Germany market. Since the end of construction boom brought price competitions, which effectively squeezed the space for mid-size or small players, we should price the MonoSpace® at a low price in order to gain market share from those mid-size or small players. My suggested pricing police for MonoSpace® are to set the...
Words: 316 - Pages: 2
...|The case preparation questions are intended to help you identify and address the key issues in the case while preparing the case analysis note| |for each case before the discussion in the class. | |Session No & Date |Case: Preparation Questions | |1&2 |PV Technologies Inc: Were they asleep at the Switch? | | |What could be the reasons for the unfavorable evaluation of PV technologies by Greg Morgan? | | |Evaluate alternative course of action available to PVT to gain favorable evaluation by Solenergy for the Barstow | | |Project? | | |What short term and long term policies and processes should PVT develop and implement to effectively improve its | | |marketing programs? | |3 |Kunst 1600 | | |What are the major...
Words: 677 - Pages: 3
...competencies 13 6.2 Strategic alignment 14 7 Marketing objectives 16 8 Marketing strategy 16 9 Implementation 19 9.1 Product 19 9.2 Price 19 9.3 Place 19 9.4 Promotion 19 9.5 People 20 9.6 Processes 20 9.7 Physical evidence 20 10 Milestones and leaderships 20 11 References 23 12 TELESCOPIC OBSERVATIONS Strategic Framework 26 13 SWOT Strategic Framework 30 Executive summary Since Kone Corporation was founded, the company has experienced remarkable growth and performance, which it continues to enjoy to date. However, the recent global economic crisis has resulted in decline of business in traditional markets, which has hampered projected growth. Competition has also intensified in market which requires more effort and strategies to ensure that performance does not declines. Several strategies have been identified to ensure that the company maintains its position as a leader in the business. This includes, introduction of digital marketing, market expansion, and acquisitions (Kone, 2014a). Key issues Kone has a strong reputation as a leader in the industry as a leading manufacturer of elevators, automatic building doors, escalators, and integrated solutions. Its remarkable performance has also enabled it to build a strong financial foundation, which can...
Words: 6429 - Pages: 26
