Question

Topic: Strategy

Spare Parts Business: How To Fight Pirates And Defend Market Share?

Posted by Anonymous on 8/12/2004 at 4:38 AM ET 250 Points
I work for a company operating worldwide in the investment goods sector (textile machinery). The sales of spare parts is a major contributor to the firm's bottom line. We are facing fierce competition against low-cost pirates, especially in Asia.
Question: are there any smart ways to ward off pirates, in order to increase our market shares, and still keep the margins? (we are doing following right now: have a dedicated sales force for spares, organize maintenance seminars with customers to have them use original spares, combine spares with maintenance services to differentiate our value proposition to the customers). Any other ideas?
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RESPONSES

  • Posted by jcmedinave on 8/13/2004 at 10:28 AM Accepted
    The best way is to advertise and alert people about the differences between the original parts and copies. Are there differences? Not only in the appearance, but in the functionality and benefits. Advertise the differences in the same product, send them to the current customers, develop alliances with government departments in charge of taxes and interested in consuming legal parts.

    Bye,

    Juan Carlos
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