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Medium Market Expansion

Tristar Home Appliances (2017)

#Manufacturing
ProHub Comment

This is a market entry case that requires candidates to perform market sizing calculations and evaluate distribution channel options. The case tests practical mental math and data interpretation skills, as candidates must quickly synthesize multiple charts to determine if a new B2B channel is viable and which customer segments to prioritize.

Estimated Time 15 minutes
Difficulty Medium
Source Columbia
50 / 100
Tristar is a large international manufacturer of electronics, home appliances, software, and biotech products. Their home appliance line (refrigerators, washers & dryers, microwaves) has been very successful in the United States, mostly through a B2C model: they get their products into retailers like Best Buy, Sears, Home Depot, etc. Tristar management has set aggressive revenue targets for the coming year, and the home application business unit director has some concerns about meeting them. She has asked your firm for help in evaluating a new opportunity: B2B sales, specifically the home builders market. Tristar would sell appliances to builders, who would then install them in their new units. Sales could also occur for home remodeling.

Clarifying Information

  1. The builders market is split 50/50 between two competitors: GE and Whirlpool.
  2. If the candidate needs guidance to recognize the difference in the market, you can explain that with a retailer like Best Buy the firm simply supplies sufficient inventory, whereas in the builders market deliveries must occur on a particular day to a particular building site.
  3. Tristar has strong sales throughout the US.