What impact has JCB had on its market
I will be investigating the impact which JCB has had on the construction, agriculture and material handling equipment market. I will be using information from the media, the JCB website (www.jcb.co.uk) and from notes I took at a presentation given by Jason Sankey from JCB. I think that my research will show that JCB has had a major impact on the market and I believe the company will continue to be a main competitor in the market.
Growth And Expansion
The company started off as a “one man band”, however they now emply over 6,000 people this is the first indication of their siccess and growth. The graph shown on appendix 1 (5 year growth) shows that JCB has grown rapidly since 2002. It shows that the company’s production has almost doubled over the past five years. The company currently manufactures 279 different machines, five years ago JCB only had a range of 180 products, this shows that JCB has grown as a company. JCB targets many different market segments, they produce machines for use in the construction, agriculture,defence,groundcare,waste and recycling,industry and demolition markets.
The fact that the company meets the needs of so many different market segments shows that they are diverse and that they have had a broad impact on the market. It also suggests that the company has built on it’s success as it originally only catered for the construction and agriculture markets. The second graph shown on appendix 1 (backhoe loaders) shows the growth in production of backhoe loaders since 2001. The graph illustrates that JCB is producing more backhoe loaders than ever, suggesting that the company dominates the backhoe loader market and that they are more successful in this market than their competitors.
The graph shows this as it shows that their production levels are continually growing and have not levelled off. JCB’s domination of the backhoe loader market is also shown by thefact that one in every three backhoe loaders in the world is made by JCB. The company has expanded immensly since it’s beggining in 1945. JCB now has 17 factories worldwide and has 1,000 outlets in 150 different countries. The company is currently targeting emerging markets such as China and eastern Europe. The company’s globalisation shows that they are having an impact on markets worldwide and that they are managing to compete against manufacturers from many different countries.
JCB’s chief executive John Patterson says that JCB has become ” a truly global player”. In an article featured in the Guardian newspaper in october 2007 John Patterson comments on JCB’s globalisation and how the company has been effected by the pound riding high against the dollar saying, “we would have felt the effects much more keenly a decade ago. JCB has evolved into a global manufacturer over the past few years, which has mitigated some of the impact of currency.”
JCB’s worlwide development has produced dividends for shareholders, not least at a time when the pound is riding high against the dollar.JCB currently has around a 10.4% global share of the market, this is a substantial share considering the amount of competition. The company is at present the world number 3 leader in the market, proving the company’s success and emphasising it’s impact on the market. JCB is the world leader in the production of backhoe loaders and was the world’s first to manufacture 100,000 telehandlers, these “claims to fame” show that JCB has had an impact on and advanced the market.
JCB’s main competitive advantage is their unrivalled customer support. They provide all customers with on site help, worldwide. This high level of customer service gives them an advantage over their competitors. Appendix 2 shows some statistics proving JCB’s dedication to customer care. “Our strategy is to deliver the best customer support in our industry – putting the customer at the very heart of our business” says Mr.Assetcare. This “world class customer support” has allowed JCB to build a strong relationship with it’s customers, therefore they have achieved a good reputation, allowing them to compete successfully in the market.
One of JCB’s competitive advantages is that they have increased international sourcing of components. This means that they can always get hold of their components from wherever they are cheapest, giving them competitive advantage over some of their competitiors. Other advatages that the company has over it’s competitors include the superb quality of their products, their innovative ideas and the company’s creative marketing.
The brand map shown on appendix 1 details all the things that JCB believes gives it such a good reputation in the market, it includes their innovation, their responsible ethic, their straight-talking, inspiring attitude, their hard working workforce and their world-wide reputation. All of these features give the company their good reputation and strong brand name giving it a competitve advantage. Having so many advantages over it’s competitors has enabled JCB to become a greater competitor in the market and have a large impact on the market.