Swisher Electric motor Case Examination

 Swisher Engine Case Examination Essay

Wayne Swisher, President and Chief Executive Office of Swisher Mower and Machine Firm (SMC), was weighing the proposal of any private branding arrangement to get SMC's brand of riding mowers. He believed the request presented a chance but information should be researched more strongly.

Situation Analysis:

Company Backdrop:

Established in 1945 by Max Swisher, SMC grew steadily with unit volume to get SMC riding mowers peaking at 10, 000 units with product sales of $2 million in 1966. Inside the 1990s, the device volume continued to be constant with around 4, 250 using mowers annually. Compared with 1, 263, 000 unit revenue in using mowers and tractors industry, SMC just occupied about 0. 3% market share. Utmost Swisher, the current CEO, thought maintaining a small company image experienced also been a crucial aspect of his business viewpoint, which resulted in the good personal relationships with dealers and customers equally. SMC created limited but differentiated products. SMC's flagship product, the Ride King, was acknowledged with the first zero-turning-radius operating mower. SMC also produced a trail-mower called T-44 with a cutting width of 44 inches wide. Kits, the self-propelled push mower, accounted for 8. 2% of SMC's total product sales, though that did not provide a material contribution to the company's gross earnings. The auto parts for mowers posed a great business to get SMC, accounting for 20% of the total sales. The next table confirmed the detailed comparison of the percentage in total revenue and total gross income across several modes of mower together with replacement parts. 1995 dataRide KingT-44KitsReplacement

Modes of MowerRiding MowerTrail-mowerPush mower/

% of total Sales63. 60%8. 20%8. 20%20%

% of Gross Profits57. 80%13. 20%029%

SMC planned to increase SMC products in 1996 by launching a high-wheel string clipper product, Trim-Max, a high-wheel, walk-behind item. With manufacturing plant in Warrensburg, Missouri, SMC owned a capacity of 10, 1000 riding mower units about the same 40-hour-per-week switch with distribution mainly in nonmetropolitan areas. About 73% of sales of SMC were made in nonmetropolitan areas. SMC marketed 30% through wholesalers, 25% through direct-to-dealer, 40% while private-label, as well as the rest 5% as export products. It offered the Drive King through wholesalers, who located over the country, centering on farm traders situated in the south central and southeastern US. SMC remained a profitable company since its beginning with a net profit come back on revenue of 10 % or more each year. The sound financial position minimized the need for any significant short-term or long-term funding.

Industry Skills:

Riding grass mowers are classified because lawn and garden equipment with two basic configurations, the front-engine lawn tractors and back engine operating mowers. On the other hand there are some mid-engine riding mowers on the market, just like those produced by SMC. Front-engine lawn tractors are the most popular style followed by rear-engine and mid-engine models. Back engined garden tractors are perceived as stronger and more long lasting. Competition in riding lawn mower industry was fierce with 10 manufacturers including major rivals in 1995, while SMC only occupied around zero. 3%, based upon sales devices. All these businesses made Riding mowers under a nationally top quality name and at the same time were engaged in private-label development. It was predicted that private-label mowers be the cause of 65 to 75 percent of total industry product sales. Each driving mower maker priced its products at cost points. The representative full prices for national and private-label operating mowers typically ranged from hundreds of dollars to $5, 000. The manufacturer's selling price of Trip King of SMC, $ 650, was quite relative, compared with sector average. Sales trends of riding mowers were cyclical and highly seasonal. With slice fall of revenue in 1991, projections for 95 and 1996 point toward further raises in unit volume. Industry statistics show that over half of...

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