Saurer: The China Challenge (A)

Saurer: The Challge (A)

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Publication Date:
July 20, 2006


In December 2003 the managemt team at Saurer Twisting Systems (STS) was facing increasing competition in the critically Chinese market. Local competitors in were undercutting the price of Saurer’s CompactTwister, which was manufactur in , by over 50%. The company was considering the introduction of a lower cost machine target at Chinese and Asian customers, who would not buy its high cost machine. Margins were likely to be ificantly lower on the new machine, and the new machine might cannibalize their high-d product. If the STS team did decide to introduce the new machine, it would have to make some difficult decisions about positioning, pricing, naming the product, and sales strategy. It was also not clear how their Chinese competitors would respond to the propos new product.

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Saurer: The Challge (A)



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