Airwide Case Study

Airwide International is a rapid growing company of commercial and residential air conditioning systems in Europe. The company is broadly broken up into four divisions, one of which is Italy (Western Europe). Italy will be the country that the current dillema will be held in. Airwide shares competition with approximately 75 different manufactures of various air conditioning units. The existence of Asian companies has intensified the competition.

Italy is the largest producer of air conditioning units but they are only found in j12 percent of homes. This is significantly low considering the United States has an average of 71 percent in homes. This is a problem that Airwide has been evaluating for some time. Since Airwide would like to increase the percentage of air conditioning units throughout Europe, especially Italy. It came to no surprise that a dealer from Genoa approached the company in hopes to persuade them to sell the units at the higher discount.

Giacomo Marino, the dealer, stated that if he were to purchase the price to distributer for each unit, that his sales would increase sales because the salespeople would get the opportunity to take away business from retailers that sell Asian brands. Airwide International is facing a common problem that most companies of their size go through. Should the dealer maintain title of a dealer but pay the same for the air conditioning unit. This has been an ongoing proposal from Nuova Climatizzazione to Airwide.

The dealer would like to be granted the same financial status as a master distributer. Nuova has proven its success in their numbers. They serve approximately 320 accounts located in Genoa. In this proposal, Nuova stated that if they were to receive the higher discount this will increase Airwide sales by 20-25 percent in the next two years. One of the main concerns Airwide has with this proposal is that they have a master distributer in the northern region who believes the dealer will take away their business.

The dealer has shown that the distributer has done a poor job in development through the region because it is too focused on high margin systems. This would be an issue for Airwide, however the distributer accounts for more than 70 percent of Airwide product sales. Airwide must choose to either give the dealer the higher discount or not. There is a conflict between the master distributer and the local dealer. The local dealer would like to decrease in market share and engage in the competitive industry.

While the dealer would like to partake in the higher discount, he will have to determine if they will be able to support the minimum $3 million inventory cost. Currently, the dealer has $1. 2 million in sales. He forecasts, with the discount, his sales will increase by 25%. As a result, his overall sales for the year will be $1. 5 million within a two year period. This is half of the inventory minimum. If the dealer would like to be considered for the discount, he will have to show a business plan as to how he will support the initial cost to obtain inventory.

The distributer had $9. 7 million in sales of the residential and light commericial units in 2000. An alternative to allowing the local dealer to obtain the higher discount is to do nothing at all. Both parties are contributing well to the company’s success, so like the say, don’t fix what isn’t broken. This may impact the dealer in how they go forward with pushing Airwide business; however the company would not be as impacted on this situation as they would if the distributer were to be upset.

The dealer is successful at selling the smaller units and the distributer is successful at selling the larger units since they have the funds for inventory. If Airwide will not give the dealer the higher discount, but they want to challenge him to see if he can gain sales up to 25%. The solution that best fits the company at this time would be to maintain what is currently the process. The dealer has not proven that they will be able to financially afford the minimum inventory budget. The distributer has a higher overall selling rate than the dealer.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
excellent job thank you Your Score 166.25/ 175- A 1. Current Culture 15% of total grade 18.37 Criterion "1. Current Culture" has textual feedback Criterion Feedback I see interesting points, though, in general they are not about the culture.
Customer 452773, June 4th, 2023
Nursing
Impressive writing
Customer 452547, February 6th, 2021
LEADERSHIP
excellent job
Customer 452773, August 12th, 2023
Human Resources Management (HRM)
excellent job
Customer 452773, June 25th, 2023
Business and administrative studies
Thank you for your hard work
Customer 452773, October 19th, 2023
Leadership Studies
excellent job
Customer 452773, August 26th, 2023
Nursing
I just need some minor alterations. Thanks.
Customer 452547, February 10th, 2021
Business and administrative studies
excellent job
Customer 452773, March 12th, 2023
Nursing
thank you so much
Customer 452749, June 10th, 2021
Psychology
Thank you!
Customer 452545, February 6th, 2021
Business and administrative studies
looks good thank you
Customer 452773, March 3rd, 2023
Business and administrative studies
excellent paper
Customer 452773, March 3rd, 2023
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp