Problematic Case Study for Curtis Automotive Hoist (CAH)How could Curtis Automotive Hoist (CAH) maintain its rapid growth and prestigious brand image with expanded market share given its limited financial and human resources? Should it adopt a market penetration strategy in the United States or follow a market development strategy and expand into Europe? If it were to adopt the market penetration strategy, should it approach the US market through the establishment of a sales office or through greater joint efforts with its current distributor? If it wants to enter Europe, should CAH start with a licensing or joint venture agreement with Bar Maisse or through direct investment? Key IssuesCAH manufactures and markets surface automotive hoists in North America. The company successfully positioned its product as a superior offering and used extensive personal selling to promote and serve the product. Its strengths lie first and foremost in its superior product and broad product line. Additionally, CAH has design expertise and holds four patents, including one for the key safety feature. Second, CAH's sales force is essential to its success. The sales force focuses on serving large direct customers and has succeeded in gaining approval from them. It built a network of distributors across North America and generated approximately 25% of annual unit sales. Finally, CAH's excellent reputation allows it to charge a premium when its competitors compete primarily on price. Despite CAH's expertise, its distribution in the United States faces serious challenges. CAH's exclusive US distributor fails to actively promote sales of the Curtis Lift. In reality, the elevator is but a minor product within the wholesaler's full product line, accounting for only 20% of its total elevator sales. Given that the US market currently represents 60% of CAH's sales and has growth potential in the future, the current US distribution system could harm CAH's growth. Another problem is the high cost of producing CAH. Its selling costs represent approximately 72% of sales, which is at least 20% higher than those of the dominant operators. The relatively low contribution margin leaves the company little flexibility in competing. Competitive and industrial analysisThe customers of the freight elevators are new car dealers, used car dealers, specialist shops, chains and independent workshops. CAH mainly targets the specialty shop segment, especially wheel alignment shops. Since purchasing a hoist represents a major capital investment, customers appreciate the features and brand of the hoist. Because auto dealership or service parent companies often play a key role in the purchasing decision, extensive personal selling is required to thoroughly convey the large amount of complex information before obtaining approval from the parent companies..