Course Code: MKT525 Course Title: Business to Business

Marketing
Course Instructor: Dr. Roktim Sarmah
Academic Task No.: CA1 Academic Task Title: Case Study
Columbia Industries, Inc
Date of Allotment: 01-08-2020 Date of submission: 13-08-2020
Student’s Roll no: A043 Student’s Reg. No: 11910540

Learning Outcomes: With the help of this case study of Columbia Industry Inc. , I
learned about the network and able to understand how things takes place in corporate
world.

Declaration:

I declare that this Assignment is my work. I have not copied it from any other students work
or from any other source except where due acknowledgement is made explicitly in the text,
nor has any part been written for me by any other person.

Student’s Signature: Jyoti Pathak

Evaluator’s comments (For Instructor’s use only)

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Evaluator’s Signature and Date:

Marks Obtained: - ................................................. Max. Mark :- ……………………………
Columbia Industries, Inc.

Introduction: -
Columbia Industries (CI) has rapidly become one of the largest producers of code-approved
products in the construction industry. It was established in 1948 in Vancouver, British
Columbia. The Canadian-based company manufactures for the purpose of linking, modifying,
minimizing and restoring pipes used in waste applications for sewer and drainage. Over the
years, demand has grown exponentially and Columbia Industries has expanded. Columbia
Industries grew and established a subsidiary in Toronto in 1994. They decided to open a new
branch in Los Angeles, California, in 1997 globally. Columbia Industries needs to adapt its
capacity to support product control with over 950 employees. By 1997, CI had revenues of
$176 million.

Presently the plant utilizes Hyster company lift trucks to handle delivery of goods. The lift
truck tends to transport vast volumes of materials from one place to another. However, health
issues about the new lift trucks have been posed due to near-accident scenarios. Stability of a
truck is challenged when hitting heavy bulk on elevated shelves is required. To ensure proper
usage and a healthy warehouse, it is important to select a new lift truck which will fulfil their
increasing requirements.

Problems Identification: -
In 1999, the plant manager, industrial engineer and the plant engineer recommended to the
company’s general manager that the current lift truck be replaced and they require 7 new lift
trucks. Lift trucks were essential at the warehouse as they are used to move heavy objects
from one place to another. There are countless reports of the company lift truck needing
costly regular maintenance or repairs and making its employees unhealthy conditions. The
issue with the old lift trucks were that there were safety concerns and one of the driver had
recently experienced a near accident while working. As the product size of CI has increased
rapidly in weight, the trucks demonstrate that they can be unstable while carrying the heavy
loads, which is a safety issue that the labour union has supposed to be taking care of
management.
 The other concern of union is the manoeuvrability of the trucks in the small
spaces in the plant, which the drivers recognize as a safety issue. To order to stop raising
several repair costs, servicing difficulties with transmission and other components result to
lack of revenue as a consequence of production difficulties dependent on lift truck capacity.

Another explanation the current lift trucks demand is that the Vancouver plant has undergone
fast growth and demand over the past couple of years. However, the company was unable to
meet customers ' needs at that particular moment due to the lack of proper lift trucks, and
ultimately needed to lose valuable customers. With Columbia Industries increasingly
growing, truck downtime may be counterproductive to the production of their plant. The new
lift truck will be able to overcome the following problems regardless of such complications:

 Lift performance features

 Downtime due to maintenance
 High maintenance expenditures
 Unsafe condition with employees
 Insecurity level
 Lift truck and production capacity severely constrained

Columbia Industries therefore wants 7 new truck lifts which are capable of doing the job and
delivering a really efficient operation. Also, they should consider the cost of these lift trucks
and try to buy life trucks that have low maintenance costs. We will always consider
purchasing vehicles that have minimal downtime that don't get easily depreciated. These are
the five main success indicators or requires Columbia Industries will remember while
purchasing the latest lift trucks.

Analysis: -

Columbia Industries requires 7 modern lifts to provide their workers with a safer workplace
and these truck lifts would also enable them satisfy current customers’ expectations and
needs. The industry wants to look at multiple vendors and the goods they sell.

Mr Stuart West was the industrial engineer responsible for effective appliances and
machinery distribution, including lift trucks. So in this case Mr. Stuart West was charged
with identifying seven lift trucks which would adequately suit the company's needs. The
purchasing agent reviewed the credentials of low down time, security, good service and
maneuverability. He then studied the different offerings, and reduced the decision to five
brands. He contacted the various companies at this point, and asked each company to send a
salesman to meet and give him a quote. The quotations were formally requested on June 1,
1999.

 Yale: - Yale was the first manufacturer to give a quotation, and the offer delivered
on 6 June 1999. Columbia Companies purchased goods from Yale earlier also. The
sample truck that they sent in was very distinct from the Hyster trucks that Columbia
was already using so the operator needed some time to test it. Finally, though, they
were comfortable in their capacity to use the unit and were pleased with their
capabilities.

 Komatsu: - Komatsu 's proposal came up the same day as Yale 's proposal. A few
days before the arrival, the Komatsu salesperson had invested much time engaging
Mr. West with the specifications and advantages of the Komatsu lift truck. Komatsu's
salesman identified the competitor’s product's potential drawbacks but were unwilling
to submit a demo truck to the operators to look into.

 Caterpillar: - The third quotation from Caterpillar, Inc. delivered June 7. The
salesperson sent Mr. West a detailed description and told him to clarify what features
of a lift truck the company was seeking. He then sent the truck to Columbia Industry
for demonstration. The Caterpillar salesperson described in depth how they will profit
from the advantages of the Caterpillar lift truck and how that fulfilled all of their
specifications.

 Hyster: - The fourth quotation that was issued on June 9 came from Hyster. The
Hyster dealer has earlier visited Mr. West and given a rather interesting demonstration
on the Hyster brand and the functionality of lift trucks. The lift truck operators were
satisfied with the Hyster truck's maneuverability, and were assured that they could
handle them. They were however also worried about the trucks' reliability and
protection when there was a complete load with the mast being completely extended.

 Toyota: - Received the last quotation came from Toyota. The salesman was well-
informed about lift trucks and his company. Mr. West had initially been really
 involved in this company as he had heard about the durability and efficiency features
of this lift truck. The lift truck operators were pleased with the truck's efficiency and
ease of handling, but the lift truck operators were unable to check the pipes to the full
height necessary.

The Company will recognize five important components when evaluating a new lift
truck. The characteristics evaluated in equal weight include: size, cost, company
partnership, warranty, and safety.

Solution: - Each of those considerations would decide which company will be selected.
The truck's efficiency was identified by assessment of the prototype case. Client partnership
was assessed by period of follow-up and integrity in the business. Although Security has been
stated by likeliness to function and fulfil the conditions of operation, there is also a contrast
of each external aspect seen. Analysing if the client sold a prototype vehicle, easy-to-use
equipment, trading price for current vehicle rise, follow-up call efficiency, and achieving the
necessary mission output capability would include a strategic roadmap for the business.

In my point of view, the Caterpillar lift truck is better in comparison to the other four
lift truck. The Caterpillar lift trucks are easily transportable and had advanced features. The
caterpillar lift truck with mast fully extended with a full load and performed very well under
these condition. According to the case, the operator of Columbia Industries was also
impressed with the truck and was confident that he could address any problems that might
arise. As long as the greed for quality than money, there will always be an assurity of
durability, maintainability, capacity and last but not the least EXCELLENCE. Though, the
cost of Caterpillar is high but it is superior in every possible way.