Airwide InternationalBy Akshay Chaphekar-32503 Vaibhav Kolhatkar-32517
Introduction Airwide is big AC producer co. in Europe Based in York, England Airwide was the one of the top suppliers of commercial and resedential AC in europe Its also automobile systems to export oriented OEMs. Product included Air conditioning chillers, Air handlers, terminal devices and other controls Airwide is in also Energy efficient system and filtered air system
Contd Airwide had more than 3000 employees across 25 locations in 10 countries of Europe. Airwide has 9 Manufacturing locations such as Poland, Hungary, England, Czech Republic etc Organisation StructureDivided into 4 Division> United Kingdom ( England, Ireland ,Scotland) > Western Europe( Germany, Italy, Spain, Greece) > Scandinavia ( Denmark, Finland, Norway, Sweden ) > Eastern Europe ( Poland, Hungary, Romania, Bulgaria)
Airwide Product Line Airwide has 4 product line such as Windows, portable, split, and Multizone Split. Windows System:> Longest Serving Air conditioning types > Cooling capacity 5000 to 30000 BTUs > Higher the BTUs long area under cooling
Portable Units:> The units are movable from one place to another > Cooling capacity 6000 to 60000 BTUs > It comes into two types i.e. Split and tube
Split System:> Unit Come in two parts i.e. inside unit and outside unit > Condensid part placed outside and evaporating unit is placed inside
Multizone Split system:> In this unit a single outdoor unit can connect multiple indoor units of different sizes and operated separately by remote control. > Main market is commercial buildings and large residential units.
Competitive Environment In Europe according to survey AC market was centered on the warmer regions of southern Europe such as Italy, Spain, Portugal. Number of competitor in European market was higher in split and multisplit market. 75 different companies are working such industry. Competition through aggressive pricing and breadth of product line targeting low end system. Now a days there are declining in growth of AC market The big market of Italy have only 12% of homes have AC and just 11% in Spain.
Change In Market Condition In decade of 2000 Airwide was not market leader but was leading competitor. The dot com bubble had been one of the drivers of growth during last years of 20th century. The growth of IT enable thousand of entrepreneurs to set up companies in Europe. Not only IT but also restaurants, shopping malls, theatres, etc also started use of AC . The other factors such as increasing in Income level of people, increasing population, changing climatic conditions affect the growth of AC industry.
But at the end of 20th century the dot com bubble burst because of unrealistic expectation of growth from such sector. Due to such situation Airwide sales come down. Airwide sales comedown by 7% in 2000 as compare to its peak in 1998. In Italy, Aiwides largest market it come down by 16%.
Distribution Model Distribution through broad network according to wide geographical areas Its supported by CSOs, there were 45 total CSOs through out Europe. CSOs deal with property agents, or architectures or consulting persons to promote their product. Airwide master distributor had exclusive agreement with product lines and territories. He can also handle other product lines of other companies but not same product line of competitive co.
Distributor supported by sales team and technician also. Sales representative helps the master distributor to increase business but not allowed to go in daily business. The distributor and sales force had mutual understanding that they are working for big company to improve their business. Multiple countries with different cultures, climate Europe is big challenge for business.
Channel Conflict The distribution network divided into four parts. In each part there are Master distributor and local dealer. The dealer are different part in channel, they are few in numbers and existed only in Italy, Spain, and France. They served in small market areas with strong market industrial or commercial pockets. The dealers are very traditional in market.
The relation between Master distributor and Dealer were not so good. Both want to capture all market solely The contract between Dealer and Co on the basis of mutual trust and relations. The master distributors are equipped with technician, sales force but dealer was just intermediate who had only relations with customers. Due to personal relation with customer dealer can able to deliver good service rather than MD.