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c)Can-Am sells more at home than overseas.
d)Can-Am operates in several different countries.
e)The biggest manufacturers of American sporting goods are outside the US.
ΘWe talked to Can-Am’s International Vice President, Thomas Willhite, who gave us some background information on the company. He is concerned about Can-Am’s European sales.
ΘListen to the recorded interview with Thomas Willhite and then correct the errors in the journalist’s notes below. Then sum up the conversation.
Interview with Thomas Willhite
Background information on Can-Am
Willhite position in Can-Am
International Vice President, responsible for export sales
Type of company - Multinational corporation
Manufactures and markets sporting goods
Main product lines
Baseball equipment, American football equipment
Position in market – 7th
Main markets 75% of annual revenue is in US
European market important
Sales in UK poor. European distributor – Touchline Trading UK
Exercise 3. Complete this index card on Can-Am. Use the information in the interview and in the extract from the international handbook. Then fill in a card for your own company.
Company: Can-Am Sports |
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Company: |
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Headquarters/Head Office: |
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Headquarters/Head Office: |
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Address: |
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Address: Can-Am Center 52 |
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Bloor Street West, |
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Toronto, Ontario M5W 1A3 |
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Telephone Number: (416) 555-8000 |
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Telephone Number: |
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Fax Number: |
053-3660 |
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Fax Number: |
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Type of organization: |
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Type of organization: |
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a) |
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a) |
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b) |
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b) Sporting Goods Manufacturer |
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Main Product Lines: |
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Main Product Lines: |
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Main Markets: |
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Main Markets: US, Canada, South |
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Korea, Philippines |
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Main Subsidiaries: |
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Main Subsidiaries: |
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Market Position: |
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Market Position: |
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Annual Revenue: |
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Annual Revenue: $ 864 million |
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10
Θ Thomas Willhite arranges a meeting with Touchline Trading UK. Before the meeting, he contacts a friend from business school, Annique Demeyer. Mademoiselle Demeyer runs Associes Demeyer of Brussels, a market research organization. Willhite asks her to prepare an independent forecast of Can-Am’s sales in Europe for the next three years.
Read the following extract from Annique Demeyer’s report.
TABLE I: Sales of Can-Am products in Europe to date.
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Year |
Sales ($US) |
Annual Increase |
Market Share (Europe) |
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UK |
Other |
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1 |
180 000 |
- |
5% |
- |
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2 |
385 200 |
114% |
9% |
- |
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3 |
701 064 |
82% |
14% |
- |
Current |
4 |
1 030 564 |
47% |
18% |
- |
The European market is composed of a number of independent national markets. These markets have different purchasing patterns and distribution systems. Touchline is strong in the UK market. 85% of their sales, including sales of Can-Am’s products, are in the UK.
Our research indicates that interest in baseball and American football is growing fast in Europe. This is a direct result of coverage of these sports on satellite and cable TV. We understand that the European market for baseball and American football equipment is growing at an annual rate of 17%.
This growth is not just in the UK. Continental Europe represents over 60% of the total European market. Touchline does not appear to compete significantly outside the UK.
It is true that sales of Can-Am’s products in the UK have risen dramatically in the last four years. But this is partly because your major US competitors show little interest in the UK market. This may change as the market grows. Touchline may find it difficult to maintain its share of the market.
However, continental Europe is too important to ignore – as the following figures indicate.