National Tractor and Equipment Company Case

National Tractor and Equipment Company

Case Summary:

Mr. Lawrence investigated the situation of the National Tractor Company having been surpassed by its main competitor on sales performance on 1975. After having been in the lead since 1970, it recently got overtaken.

The graphs and tables gathered by Mr. Lawrence shows the sales performance of both brands. It shows also several factors translated into sales figures. In addition, other tables showed the degree of customer loyalty of National to be quite unsatisfactory.

It is decided that the need for product design improvement and market research is to be the immediate action for the National to stay on the lead possibly in the next 2 or 3 years.

I. Case Context

In 1975, the National Tractor Company was surpassed by their main rival, Competitor A on the sales of a certain category of product which is Tractor X. William Lawrence analyzed the different data of the company, comparing it with Competitor A, dating from 1970. Some important information was drawn out from the tables and graphs, such as sales figures, market penetration, and warranty costs, all prepared by Mr. Lawrence

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II. Problem Definition

The case shows the concern of National Tractor Company having been surpassed by its main competitor during 1975. It shows the different graphs and tables between both companies over the years. The sales data is specifically important as it shows the breakdown of the difference of sales numbers at different factors.

III. Framework for Analysis and Areas of Consideration

Some points to consider is the sales data presented in Exhibit 3, comparing both companies. It shows a considerable increase of the number of tractor units of Competitor A vs. National on 1975. It also explain on 1974 the sales figure Competitor A is below National due to the fire on one of Competitor's plants. Another worthy point to note at is the product differences of both companies. Also shown on the table is the price position of National. It is vague in translating the sales estimate using this factor.

Also another area to consider is the customer brand loyalty. Table 1 and 2 shows how Competitor A's customer prefers the same brand when purchasing new tractor units.

Another thing to consider is the advantage of Competitor A on the number of owner bodies against National. Exhibit shows the number of units in operation using Competitor A vs. National. It is important to note the increase of percentage of National units over time relative to A.

The warranty table shows the relative warranty expenses per year at different model, as well as the design costs. This data does not show a comparison on Competitor A's warranty information.

IV. Analysis

Sales figure is definitely in advantage of Competitor A during 1975. Also showed is the sales translation