Baxton Technology Case Final Copy 
Baxton Technology Case Study
1) What is the problem that Mark Baxton is facing? What is the strategic aspect of the problem?
The problem Mark Baxton facing is how to approach expansion for his company and where to focus the expansion to continue Baxton’s successes. Europe presents the best area to expand because it is now considered a single market, there is significant market potential, as of 1999 importing/exporting became duty-free, and there is yet no dominant manufacturer of hoists/lifts in Europe like there is in North America. Mark has three options to evaluate. These options include: a licensing agreement, a joint venture, and making a direct investment. Baxton’s strategy has been successful in Canada and in the U.S., but has to determine which option will bring the most success in Europe while weighing the risks of each option as well.
2) What information does Mark need to know to develop a solution to the problem or address the opportunity?
The information Mark needs to know would include the specifics of the three different options, Baxton’s market share in North America, the market potential in Europe, and a break-even analysis for the direct investment option. The licensing option would include agreeing to let Bar Maisse to manufacture and distribute the patented Baxton scissor lift throughout Europe. By agreeing to this, Baxton would in turn receive 5% royalties. The joint venture would include partnering (“50-50 split”) with Bar Maisse. By doing so, it would alleviate some risk while capitalizing on the network Bar Maisse has already established in Europe. The direct investment option would include Baxton establishing its own manufacturing facility and management group to market the lift in Europe. By going this route, there lies the most risk out of the three options while having to more heavily invest. However, all of the profits would go directly to Baxton Technology. Baxton’s market share in the North America is estimated to be
1) What is the problem that Mark Baxton is facing? What is the strategic aspect of the problem?
The problem Mark Baxton facing is how to approach expansion for his company and where to focus the expansion to continue Baxton’s successes. Europe presents the best area to expand because it is now considered a single market, there is significant market potential, as of 1999 importing/exporting became duty-free, and there is yet no dominant manufacturer of hoists/lifts in Europe like there is in North America. Mark has three options to evaluate. These options include: a licensing agreement, a joint venture, and making a direct investment. Baxton’s strategy has been successful in Canada and in the U.S., but has to determine which option will bring the most success in Europe while weighing the risks of each option as well.
2) What information does Mark need to know to develop a solution to the problem or address the opportunity?
The information Mark needs to know would include the specifics of the three different options, Baxton’s market share in North America, the market potential in Europe, and a break-even analysis for the direct investment option. The licensing option would include agreeing to let Bar Maisse to manufacture and distribute the patented Baxton scissor lift throughout Europe. By agreeing to this, Baxton would in turn receive 5% royalties. The joint venture would include partnering (“50-50 split”) with Bar Maisse. By doing so, it would alleviate some risk while capitalizing on the network Bar Maisse has already established in Europe. The direct investment option would include Baxton establishing its own manufacturing facility and management group to market the lift in Europe. By going this route, there lies the most risk out of the three options while having to more heavily invest. However, all of the profits would go directly to Baxton Technology. Baxton’s market share in the North America is estimated to be