Peak Garage Door Inc is a privately owned regional manufacturer of residential and commercial garage doors. The company manufactures both insulated and non-insulated steel residential garage doors and supplies springs, cables, rollers and side roller track for its products. The survey conducted by the dealers indicates that majority of the doors are for the purpose of replacement and a very few percentage of sales is for the new residential housing market and commercial replacement garage door market. The company currently has 300 non-exclusive dealers and 50 exclusive dealers. Peak Garage door Inc has a sale goal of reaching $12.5 million in 2004, and this is increase in sales of 36% over 2003 projected yearend sales. To achieve this it has to overcome a number of challenges:
* Peak Garage Door Inc was a small firm and there were a number of large firms existing in the market. * Peak Garage Door has gained just 2% of the market share in the industry. * People were not aware of the brand of Garage Doors. Only 10% knew the brand. They gave importance to price, quality and reliability. Considering all these factors, a few strategies have been formed by the firm to overcome these challenges. * The first strategy is to increase the number of dealers in existing markets. * The second strategy is to develop formal exclusive franchise program. * The third strategy is to reduce the number of dealership without granting any formal Exclusive franchisees.
I feel that it is feasible to adopt the third that is to reduce the number of dealership without granting any formal exclusive franchisees because exclusive dealers contributed to 70% of sales and non-exclusive dealers produced only 30%. The Peak Garage Door, in order to increase their sales by 2004 should gain more exclusive dealers as they are the ones who contribute high profits to the company.