An Over View Of Industry Structure Marketing Essay

Otis Elevator Company, Inc. is the universe leader in the industry, care, and service of lifts, escalators, traveling paseos, and other horizontal transit systems. After more than a century in concern, Connecticut-based Otis has more than 1.2 million lifts and escalators in operation, commanding about 22 per centum of the universe ‘s lift market. Almost 80 per centum of the company ‘s concern is done overseas. Since 1975 Otis has been a subordinate of United Technologies Corporation ( UTC ) , a pudding stone that besides owns Pratt & A ; Whitney and Carrier. Otis contributes about 23 per centum of UTC ‘s one-year gross revenues.

Otis was acquired by United Technologies in 1976 and is a wholly-owned subordinate. The company has over 60,000 employees, with 2007 gross of US $ 11.885 billion. The company central office are located in Farmington, Connecticut.

Otis has besides dabbled in horizontal automated people-mover “ shuttle ” systems. In 1996, Otis formed a joint venture called Poma-Otis Transportation Systems with the Gallic company Pomagalski to advance these merchandises.

Otis Elevator Company purchased Express Evans Lifts in the UK. Evans Lifts was the oldest and largest maker of lift equipment in the UK and was based in Leicester, England before being acquired by Express Lifts of Northampton, to be known as Express Evans Lifts. Otis ‘ Customer Care Centre is still based in the old Express Evans Lifts edifice in Leicester. The edifice has since been extended by Otis.

There are still some installings of Evans Lifts being used today. Notably, an original Evans Lift is still in the Silver Arcade in Leicester. It once transported people to the upper floors, but the upper floors are no longer occupied so the lift is no longer used.

Gen2 Elevator

Otis entered the machine-room-less market with the debut of the Gen2 lift system. Otis designed a engineering system that employs level polyurethane-coated steel belts that replace the heavy, woven steel overseas telegrams which have remained the industry criterion since the late 1800s. The belts are about 3 millimeters ( 0.1 inch ) midst and let for a smaller sheave than conventional lifts. Together with a redesigned machine, this allows the machine to be mounted within the hoistway itself.

Kone Corporation


Public ( OMX: A KNEBV, Pink Sheets: KNYJF )




Espoo, Finland

Cardinal people

Antti Herlin ( Chairman of the board ) , Matti Alahuhta ( President and CEO )


Engineering and service


Elevators, escalators, automatic edifice doors


a‚¬4.603 billion ( 2008 ) [ 1 ]

Operating income

a-? a‚¬558.4 million ( 2008 ) [ 1 ]

Net income

a-? a‚¬418.1 million ( 2008 ) [ 1 ]


34,830 ( 2008 ) [ 1 ]


Kone Corporation ( officially typeset KONE and pronounced “ ko-nay ” ) , founded in 1910 and headquartered in Espoo, Finland, is an international technology and service company using some 32,500 forces worldwide. The house is the 4th largest maker of lifts worldwide, provides care services and modernisation solutions. In add-on, Kone physique and services automatic doors and Gatess. The company provides local service for builders, developers, edifice proprietors, interior decorators and designers in 800 locations in over 40 states. Since 1924, Kone has been owned by one of Finland ‘s wealthiest households, the Herlin household. After Harald Herlin purchased the company in 1924, he served as its Chairman until 1941. Afterwards, his boy, Heikki H. Herlin, took over his male parent ‘s station from 1941-1987. Control of the company was so handed down to his boy, Pekka Herlin, which he retained from 1987-2003. The current Chairman of Kone ‘s Board of Directors from 2003 onwards is Antti Herlin.

Company History

Kone ( so known as Osakeyhtio Kone Aktiebolag ) was founded in 1910 as a subordinate of Gottfr. Stromberg Oy. Stromberg ‘s licence to import Graham Brothers lifts was transferred to the new company. Kone sold merely a few units before ending the licensing understanding in 1917. Kone, so a company with merely 50 employees, started to do and put in its ain lifts in 1918. Six old ages subsequently, in 1924, enterpriser Harald Herlin bought Kone from Stromberg and became the new president of the company ‘s Board of Directors. His boy, Heikki Herlin, joined the company and was appointed proficient manager in 1928. His office was located in a former oleo mill on Haapaniemi Street in Helsinki that Kone had bought and converted into an lift production installation the old twelvemonth. Heikki Herlin took over as Kone ‘s president in 1932. Kone ‘s first foreign subordinate – AB Kone Hissar of Sweden – was established in 1957.

Significant confederations & A ; acquisitions

1985 – the acquisition of Montgomery Elevator ‘s Canadian subordinate opens an confederation with Montgomery in the U.S. that leads to the entire integrating of Montgomery into the Kone organisation after 1994.

1995 – an confederation was formed as Kone and MacGregor worked together to make lifts for managing rider traffic on modern sail ships. This confederation commands the taking place in marine lift market.

1998 – Kone ‘s confederation initiated with Toshiba of Japan.

2001 – Kone-Toshiba confederation is strengthened as the companies signed a historic understanding to interchange portions and extend Toshiba ‘s licence to market lifts based in Kone MonoSpace engineering.

2002 – Kone acquires the industrial technology company Partek


Corporation TYO: 6503


Tokyo, Japan ( 1921 )


Tokyo, Japan

Cardinal people

Setsuhiro Shimomura, President & A ; CEO




Energy and electric systems, Electronic devices, Industrial mechanization systems, Home contraptions, Information and communicating systems


$ 32.6 billion USD or 3,855 billion Hankerings ( Consolidated, as of June 28, 2007 ) [ 1 ]


102,835 ( Consolidated, as of Dec 2007 ) [ 2 ]


Mitsubishi Electric Global

Mitsubishi Electric Corporation ( , Mitsubishi Denki Kabushiki-gaisha ) ( TYO: 6503 ) is a Nipponese company based in the Tokyo Building in Tokyo, manufactures electric and architectural equipment, every bit good as a major worldwide manufacturer of photovoltaic panels [ 3 ] . The Corporation was established on 15 January 1921.It patrons a PGA Champions Tour event at Hualalai, Hawaii.


Mitsubishi Electric Global [ 1 ]

Mitsubishi Electric America [ 2 ]



Mitsubishi Electric Asia & A ; Oceania [ 3 ]


Australia / New Zealand


Hong Kong




There are 11 installations and 2 research labs, for illustration, Kobe, Amagasaki and Kamakura.





Mitsubishi Electric Saudi Ltd. ( MELSA ) – Saudi Arabia [ 4 ]

Mitsubishi Electric Europe [ 5 ]




Irish republic


Portuguese republic

Soviet union


Sweden / Denmark

Finland / Norway

United Kingdom

The Schindler Group




Corporate histories


Lucerne, Switzerland ( 1874 )

Founder ( s )

Robert Schindler and Eduard Villiger


Ebikon, Switzerland

Cardinal people

Alfred N. Schindler ( Chairman )


Vertical transit


Elevators, Escalator clauses


CHF13,835 million ( 2007 ) , a-? 24.6 % from 2006


44,000 ( 2006 )


Schindler Holding Ltd


The Schindler Group

The Schindler Group was founded in Switzerland in 1874 and is the 2nd largest maker of lifts universe broad. Schindler installs and maintains lifts and escalators in all sort of edifices ( Residential, Commercial and High-Rise ) . The company is present in more than 130 states and employs 43,000 individuals worldwide. The production installations are located in Austria, Brazil, China, France, Slovakia, Spain and the USA.

The 2nd concern division of the Schindler Holding is the ALSO Group. It is a sweeping and logistics company in the information and communications engineering sector and the consumer electronics sector. The ALSO division concern is chiefly in Switzerland and Germany.

Company history

The company was founded in Switzerland in 1874, by Robert Schindler and Eduard Villiger who set up the corporate articulation partnership Schindler & A ; Villiger. Shortly thenceforth, a mechanical technology workshop was built on an island in the River Reuss in Lucerne, Switzerland, for the production of raising equipment and machines of all types.

Schindler entered the North American lift market with the purchase of Toledo, OH based Haughton Elevator Company in 1979 — briefly branding their merchandises as Schindler-Haughton. In 1989, the company dramatically increased their presence in the United States after geting the Elevator/Escalator division of Westinghouse Electric, one of the largest manufacturers of lifts and escalators at the clip. Presently, Schindler Elevator Corporation, the United States operations of Schindler Group, is based in Morristown, NJ.

ThyssenKrupp AG


Public ( FWB: TKA, LSE: THK )




Dusseldorf, Germany

Cardinal people

Ekkehard Schulz ( CEO and Chairman of the executive board ) , Gerhard Cromme ( Chairman of the supervisory board )


Steel, technology, capital goods


Steel, chromium steel merchandises, automotive engineerings, works engineerings, lift systems, marine systems, ship building, services


a‚¬53.43 billion ( 2007/2008 ) [ 1 ]

Operating income

a-? a‚¬3.572 billion ( 2007/2008 ) [ 1 ]

Net income

a-? a‚¬2.276 billion ( 2007/2008 ) [ 1 ]


199,370 ( 2007/2008 ) [ 1 ]


ThyssenKrupp Nirosta, ThyssenKrupp Marine Systems


ThyssenKrupp AG ( FWB: TKA, LSE: THK ) is a big German industrial pudding stone, with more than 200,000 employees. The corporation consists of 670 companies worldwide. ThyssenKrupp is one of the universe ‘s largest steel manufacturers. It operates worldwide in three concern countries: steel, capital goods, and services. The steel unit concentrates on C steel and chromium steel steel, while the capital goods unit consists of three sections: lifts, automotive ( parts, sub-assemblies, and faculties ) , and engineerings ( machine tools, large-diameter bearings, cement workss, bulk stuff managing systems, chemical / refinement workss and industrial doors ) . The services sector provides bespoke stuffs, environmental services, mechanical technology, and scaffolding services. The company is the consequence of the 1999 amalgamation of Thyssen and Krupp, and is headquartered in Dusseldorf. As of 2008, 25.01 % of the company portions are held by the Alfried Krupp von Bohlen und Halbach Foundation.

Merchandises and gross revenues

ThyssenKrupp generates 33 % of its amalgamate gross revenues on its place market. The remainder of the EU ( European Union ) ( 28 % ) and the NAFTA part ( 21 % ) are the cardinal foreign parts for its concern outside Germany. ThyssenKrupp companies hold taking places with their merchandises in legion international markets.

Amalgamations and acquisitions

ThyssenKrupp itself is the consequence of the 1999 amalgamation of Thyssen and Krupp. In 2005, ThyssenKrupp acquired Howaldtswerke-Deutsche Werft ( HDW ) in Kiel from One Equity Partners. ThyssenKrupp Marine Systems ( TKMS ) is now the most of import European group of shipwrights. In add-on to HDW, Blohm + Voss in Hamburg every bit good as Nordseewerke at Emden are besides subordinates of TKMS. One Equity Partners holds 25 % of the TKMS portions.

In early 2002, ThyssenKrupp acquired 90 % portion of ECE Industries Limited, Elevator Divison, India. Now it is 100 % subordinate of ThyssenKrupp AG, Germany.

In December 2005, ThyssenKrupp acquired 60 % of Atlas Elektronik from BAE Systems, with EADS geting the staying 40 % .

In August 2007, ThyssenKrupp Materials North America acquired, a small-quantity distributer of semi-finished metals and plastics based in Seattle, WA.

In early 2008, ThyssenKrupp Aerospace acquired Apollo Metallic elements and Aviation Metals, both providers to aerospace and defense mechanism.

Four decennaries in lifts

Today, No. 1 in South India and No. 2 in India

Over Rs 500 crore gross revenues in 2007.A

5000 elevators/year.A

19,000 installings to day of the month.

ISO 9001 company.A

Puting industry benchmarks: A

New engineering adapted for Indian conditions.A

Professional installing teams.A

Quickest service response.

2 extremist modern mills – in Chennai and Nagpur, India.

Comprehensive merchandise scope in lifts and escalators.

Over 1500 employees. 800 installing forces.

Offices all over India. Overseas in Srilanka, Male and Nepal.

4.3 Competitors Activities in South India:

Bangalore: OTIS, Kone, Schindler are aggressive an taking the maximal portion of orders finalized. ThyssenKrupp & A ; Johnson are dong good. Mitsubishi yet to capitalise the market through they have gaps.

Hyderabad: OTIS, Kone & A ; Johnson are aggressive. Schindler, Mitsubishi & A ; ThyssenKrupp are making normal. Unorganized Sectors are aggressive.

Madras: Kone & A ; Johnson are aggressive. Schindler, Mitsubishi are making good. ThyssenKrupp making normal. Unorganized sector ‘s making good.

Cochin: Kone & A ; Johnson are aggressive. Kone is following a distress merchandising. Schinder, Mitsubishi, ThyssenKrupp are making normal. OTIS is on lowkey selling attempts. Unorganized sector is steadily bettering their market portion.

Goa: Unorganized Sector making sharply. OTIS, Kone, ThyssenKrupp, Schindler, Johnson are making normal. Mitsubishi yet to capitalise the market through they have gaps.

4.4 Market Targeting:

The undermentioned captions/slogans are utilizing by assorted companies on their selling of new gross revenues

Otis: ” The World ‘s Number One ”

“ Quality is installed good before the lift is ”

KONE: ” The Heart of your edifice ”

“ Reach new highs with us ”

SCHINDLER: ” Smart inventions to function you better ”

MISTUBISHI: ” Quality in Motion ”

THYSSENKRUPP: ” Accept No Limits ”

The undermentioned captions/slogans are utilizing by assorted companies on their selling of Maintenance/Service contracts.

Otis: ” When it concerns user safety we leave no rock unturned “

“ A kid is now perfectly safe ”

KONE: ” Global presence local excellence ”

SCHINDLER: ” Quality for everyone

Value for money

Quality and Value for all

Comfort with efficiency ”

MITSUBISHI: ” Trend compositors in lift and escalator industry ”

“ Elevator people of the gulf ”

“ We do our best ”

“ Our concern is to transport people with safety ”

“ Our slogan – client satisfaction ”

“ Round the clock, 365 yearss service ”

“ Advanced, of all time progressing engineering ”

THYSSENKRUPP: ” The World in Motion ”

“ Endless Mobility ”

“ Would you handover your Child to a Stranger?

– Decidedly non!

They why do the same to your lift?

– Let the people, who know the Elevator attention for it! ”

4.5 Mergers & A ; Acquisitions:

Before the construct of Globalization and liberalisation there are few companies established in India independently and besides had a tie up of engineering issues by some foreign companies but after the construct of Globalization and liberalisation many Multi National Companies entered into the Indian market by geting the bing companies and besides at the same clip the transmutation of Indian beginning company to Multi National Companies began to take topographic point. Now there are 2 or 3 Indian beginning companies that which are decently organized, but it is really hard to vie with Multi National Companies.

Globalization & A ; Liberalization:

Multi National Companies

Acquired Indian Company

1.United Technologies – Otis

2.ThyssenKruppElevator AG ( Germany )

E C E Industries Ltd

CARE Elevators-Mumbai

3.Kone ( Finland )

Bharat Bijlee Ltd

4.Mitsubishi ( Japan ) through ETA Melco

7.Fujitec ( Singapore )

5.Schindler ( Europe )

8.Fuji ( Singapore )

6.Hyundai ( Korea ) through a joint venture with Kinetic India

9.Hitachi ( Japan )

Indian & A ; Organized


The Indian Elevator industry is made of organized sector and unorganised Sector. The organized sector constitutes about 70 per centum of Elevator market while the unorganised Sector constitutes the balance 30 per centum.

The organized sector comprises OTIS, ThyssenKrupp, KONE, JOHNSON, SCHINDLER, MITSUBISHI, etcaˆ¦While the unorganised comprises of Freelancers, one adult male lift companies and caters to the low terminal section.

A Comparative Study



Huge capital

Very Less

Installed base

In minority

Skilled adult male power


R and D installations


Service backup

Lack of service capableness

Handiness of spares

No Inventory

Guaranteed Service support

Not dependable

4.6 Future Status of The Industry:

The Elevator industry today is lifting to unprecedented highs. After seeing dead volumes during the early 1890ss, Elevator production increased aggressively last twelvemonth by 50 % . This higher growing rate is a effect of structural alterations in the existent estate market/increased rate in imparting bank loans with less involvement rate, etc. , There is non merely a pronounced acceleration in the orders booked in the recent past old ages but today there is besides a crisp pickup in the enquiries, proposing that the robust demand growing will go on in the hereafter excessively.

The factors forcing the state ‘s hitherto small letter Elevator industry into a new growing orbit are:

The structural alterations in the building industry, which is a major purchaser of Elevators.

The recent economic liberalisation, which has non merely boosted building demand but besides brought in a host of new, choice witting purchasers.

Therefore non merely will the industry grow faster in future, it will besides see the extract of high-tech lifts. This will take to a quantum leap in lift gross revenues fuelled by both faster growing and higher monetary value realisations. The runaway rise in existent estate monetary values in tube and major metropoliss in the past few old ages, has led to a large leap in gross revenues of better quality and safer lifts. Real estate purchasers now pay immense amounts of money and expect builders to supply high quality installations. The liberalisation of regulations and processs for easing Non – Resident Indians ( NRI ) investings in lodging have besides had a similar impact.

Another important alteration in recent old ages has been the turning corporatisation of existent estate concern. More and more Non Resident Indians are returning to India and seek out a life manner every bit near as possible to the 1 they enjoyed abroad and it is for this ground that builders believe that all their buildings have to be highly sophisticated and epicurean utilizing merely the really best stuffs and installations available. Corporate central office which are acquiring swankier demand state-of-the-art lifts.

The increased demand in this section is besides related to the monetary value of existent estate with people paying more per inch, they expect the best installations. Since this section is non price-sensitive the demand for quality lifts has picked up in tandem.

A figure of big corporate like Great Eastern Shipping, Reliance, Mahindra and Mahindra, Essar, Ashok Leyland, Lloyds steel, Videocon are now active in belongings development while many of traditional large builders like the Raheja ‘s, Brigade Group, Prestige Group, DLF are now more corporative. This has led to a important rise in the quality of building and of installations provided to belongings purchasers. It has besides encouraged more people to put in belongings because of the greater trust reposed in corporate builders.

The displacement towards better engineering and more complex merchandises will take to higher keeping of service income and output better borders on both care and new installings. Service income is a major subscriber to net incomes because it offers higher borders than on equipment gross revenues. Baring the first twelvemonth after a lift is installed ( guarantee period ) the maker receives service income at around 5 – 6 % of the value of the Elevator.

India is emerging as a fast turning market, and is seen as a immense ‘potential ‘ market for lifts.