Problem Case Study for Curtis Automotive HoistHow could Curtis Automotive Hoist (CAH) maintain its rapid growth and prestigious brand image with an expanded market share considering of its limited financial and human resources? Should it adopt a market penetration strategy in the United States or should it follow a market development strategy and expand to Europe? If it adopts the market penetration strategy, should it approach the US market through the creation of a sales office or through enhanced joint efforts with its current distributor? If looking to enter Europe, should CAH start with a licensing or joint venture agreement with Bar Maisse or with a direct investment?Key QuestionsCAH manufactures and markets automotive surface hoists in North America. The company successfully positioned its product as a superior offering and used extensive personal selling to promote and service the product. Its strengths lie first and foremost in its superior product quality and its wide range of products. Additionally, CAH has design expertise and owns four patents, including one for security key functionality. Second, CAH's sales force is critical to CAH's success. The sales force focuses on serving ¡°direct large accounts¡± and has been able to gain their approval. It established a network of distributors across North America and generated approximately 25% of annual unit sales. Finally, CAH's reputation allows it to charge a higher price while its competitors fight mainly on price. Despite CAH's skills, its distribution in the United States faces serious challenges. CAH's exclusive US distributor fails to actively promote sales of Curtis Lift. In fact, the elevator is only a minor product in the wholesaler's complete product line and represents only 20% of its total elevator sales. Given that the U.S. market currently accounts for 60% of CAH's sales and has potential for growth in the future, the current U.S. distribution system could be detrimental to CAH's growth. Another problem is the high production cost of CAH. Its cost of sale represents around 72% of sales, or at least 20% more than that of the dominant players. The relatively low contribution margin leaves the company with little flexibility in the face of competition. Competitive and industry analysis Hoist customers include new car dealers, used car dealers, specialty stores, chains and garages independent. CAH primarily targets the specialty store segment, particularly wheel alignment workshops. Since purchasing a hoist represents a significant investment, customers appreciate the features and brand of the hoist. Since parent companies of automobile or service dealerships often play a key role in the purchasing decision, thorough personal selling is necessary to convey the large amount of complex information in detail before obtaining corporate approval mothers..