Ingersoll-Rand Competition
Now Viewing Ingersoll-Rand's competition in: Manufacturing Sector
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What kinds of customers buy the company's products? - Some products appeal to a certain customer market and some to multiple markets.
How large an area does the company service? - Manufacturers can have international, national, regional, or local distribution channels.
Who are the largest individual customers? - Manufacturers with a few large customer accounts dominating the majority of their accounts receivables have a higher customer default risk.
How does the company find new customers? - Companies advertise in trade publications, use a sales force or manufacturer representatives, and participate in trade shows.
Does the company exhibit at major trade shows? - Trade shows are an excellent way to advertise; evaluate competitors; find new suppliers, vendors, and distributors; and meet new customers.
Does the company have special programs to retain customers? - Some companies assign special sales representatives to big customers.
How does the company price its products in relation to competitors'? - Pricing strategy depends on product characteristics, the maturity of the product life cycle, the size and growth rate of the target customer market, the number of alternative products available, and the level of direct competition.
Is a company in the industry the price leader? - Some industries have one or more firms that become the benchmarking standard for the industry.
Who are major competitors? - Some competitors will be direct (appealing to the same specific target market) and others indirect (appealing to the same general market).
What competitive advantage does the company have? - Highest quality product, unique product, lowest prices, best service, etc.
Competitive Landscape
Demand ultimately depends on consumer spending. The profitability of individual companies depends on efficient production and distribution. Large companies often have large economies of scale in purchasing, production, and marketing. Small companies can compete effectively by producing specialized products. The industry is capital-intensive and highly automated: annual revenue per employee varies greatly due to the large variety of production operations but averages more than $350,000.
Business Challenges
CRITICAL ISSUES
Highly Dependent on Consumer Spending - Production in the manufacturing sector depends on consumer spending and retail sales, and can change rapidly during an economic slowdown. For example, US manufacturing grew at an average annual rate of 5 percent during much of the 1990s, but dropped 5 percent during a recent recession. In some sectors, like industrial machinery, production dropped more than 30 percent.
Competition from Low-Cost Imports - US imports of manufactured goods have increased rapidly, because products with large labor content are much cheaper to produce in low-cost countries like China and Mexico. To remain competitive, many US manufacturers have moved production facilities abroad or have shifted to products with higher technology content. China recently surpassed Canada as the largest source of manufactured goods for the US.
Industries Where Ingersoll-Rand Competes
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Industrial Manufacturing(primary)
- Fluid Control Equipment, Pump, Seal & Valve Manufacturing
- Automotive & Transport
- Construction
- Construction Materials
- Security Products & Services
