Generally speaking, the paper "How Has Atlas Copco Managed Its Market Entry" is a great example of a marketing assignment. The entry of Atlas Copco into the market can be described as average. It is average because Atlas Copco managed to excel where other foreign compressor manufacturers had failed. Atlas Copco was able to enter the United States markets and immediately established a very effective organization of service and sales. These were some of the things that gave its entry into the US market a head start. However, a few mistakes that were made at the beginning do not allow this assessment to give the company an excellent score.
The company was very strategic and aggressive in its operations as it entered the market. It had 1% of stationary air compressor market which was able to grow substantially to a bigger market share. In the meantime, it was growing its market share in places such as Europe, South America and Asia. To add to this it had taken its first 22 years after opening to establish itself in the markets of Germany, France, Norway, Sweden, Italy, Spain, Philippines, Brazil, Italy, Japan and Korea.
These achievements made it stronger and gave it the power to enter the US market with success. Its entry into the US market met some challenges but due to proper and strategic planning, all these challenges could not interfere with its growing market share. The reciprocating compressors made by the company at the time of its entry into the North American market were designed according to the European standards Coughan et al (2006, 410). This was a potential pitfall that could have messed the company’ s prospects.
However, measures were put in place to ensure that compressors that could suit the US market standards well were designed and brought forth. It is, however, worthy to note that the company’ s entry into the market could have had a better score if this blunder was not there. The management failed to do a thorough survey of the market in order to know which type of compressors were suitable for the market before launching out. The fact that they launched out without knowing what the market expected of them proved that they were not thoroughly prepared for this entry.
However, the company’ s reaction to the challenges was good. Another thing the made the company’ s entry into the US market to be average was the design of a broad range of compressors suitable for the US market. Among its strong points was the investment made into the rotary screw technology which was applicable in rotary air compressors that are stationary. In this technology, the company managed to stay ahead of its competitors. Atlas Copco also failed to excel in another instance.
The company in its desire to build market share failed to secure distributors because it lacked an installed base of machines. This was a failure on the part of the company that could have been avoided with proper planning, strategy and market survey Coughan et al (2006, 367). The machines available required a lot of maintenance, spare parts and repair. After learning from its mistake the company had to change strategy in its phase two entry. Generally, the performance of the company immediately after entering the US market was average.
The company was not a total failure neither did it excel because of the mistakes and challenges it had. Many of these mistakes were rectified in phase two and the company picked up and gained a good share of the market.