Using the data given in Exhibits 1 and 2, critically evaluate the competitive performance of Fike Europe in 1992

Question

What will be an ideal response?

Answer 1

Data provided in Exhibits 1 and 2 would enable the students to perform competitive analysis of Fike Europe’s performance vis-à-vis the competition. Despite Fike’s commitment to quality and customer service—with a production facility in Antwerp, Belgium—the company’s market shares for rupture discs (Fike’s major product line) in the two major European markets (Germany and the United Kingdom) are only five percent and six percent respectively (see Exhibit 1). A similar trend of low market share for vents can be noted for the largest European market (Germany), as shown in Exhibit 2. Such low market share performance is rather surprising considering the fact that Fike has been marketing its products in Europe since the 1960s. From this evidence, it may be concluded that, in spite of Fike’s strong market position in the United States, the company does not seem to enjoy dominant market position in the leading markets of Europe. This evidence can also be interpreted to suggest that competition in the European markets is quite intense. Out of the six competitors for rupture discs, three competitors—A, B, and C—seem to enjoy significant levels of market strength in different European markets. Fike’s performance with its vents (Exhibit 2) is better than for its rupture discs (Exhibit 1). Even in the case of vents, two of the six competitors—C and D—seem to be quite strong. All of this evidence clearly points to the fact that competition in the European countries is quite intense. Such intense competition has many strategic implications for Fike’s European operations in the post-1992 fully integrated European Common Market.