Singers Globalization

US Environmental Issues
Patent War
Each major sewing machine company held patent for

some parts. Elios Howe wins lawsuit against singer because of which singer has to pay hefty lawsuit on $25 on each machine sold (25% of the retail price).

Strategies Adopted
Strategies Sold territory rights Creating branch office in major cities like Boston, Philadelphia, New York. Will have managers, demostrators,salesm an and a mechanic Pros to avoid patent fight with competitors Dont have to pay to commission offices the hefty fees. Cons Hefty fees to be provided to commission office Expensive marketing strategy

Albany Agreement: Common patent pool. Singer,Gorge and Baker Additional Revenue. , Wheelerand Wilson Faster growth. and Howe formed a patent pool. So any other company selling a sewing machine need to pay $15 to the group.

Initial Selling Strategies - US

Hire Purchase Plan (First Time In History)
$5 down payment $3 monthly payment

50% discount to ministers in churches Trade in programs

Exchange Offer

British Market Overview

Advantages
Very high per capita income. Political center of global empire. Low Tariff and no restriction to foreign ownership. Robust legal system and politically stable.

Skilled & low cost labor force.

Good shipping facilities.

British Market Issues

High freight charges.

Lower price in British market.

Meeting supply with demand. Poor workmanship in imported machine.

Woodruff Strategies To Tackle UK Problems

Local foundries to build weighty stand.

Weeded out lazy agents.

Discounts to agents based on volume sales. Instead of reducing price , company offered free

sewing machine lessons, instruction manuals and catalogs. Introduced new factory in Bridgeton with weekly capacity of 2000 units (served the rest of the European demand as well). Exclusive sales force to sell only singers sewing machine.

Woodruff Strategic Impacts

Explosive increase in demand.

Introduced largest sewing machine in US with

daily production capacity of 1000 units. Introduced 2nd plant with production capacity of 10000 units per week in Kilbowie.

Woodruff Innovative Strategies

Introduction of door to door salesman.

Separated canvassers/collector roles.

Introduction of fixed and variable pay ( First Time

In History)
15% commission on money received from initial

sales 10% commission on money collected on installments.

Promotion of canvassers to high sales region

based on performance. Introduction of fidelity funds. Guarantee Fund.

Fidelity & Guarantee funds

Fidelity Funds
1 pound as a special assurance against dishonesty

and embezzlement. Contribution was refundable based on embezzlement.

Guarantee Funds
Every canvassers has to produce fund of 50 pound. This fund was created from weekly payments

withheld from canvasser's commission. Interest to be provided on this fund collected.

Branch Office System & Its Operation

Branch office opened in larger cities which would server secondary markets as well.
Increase in demand

Create Branch Offices in Secondary Market Places.

Agents become familiar in town and cities

West To East
Reduced demand for post sales service.

Increased competition.
Britain began to tax profits of foreign companies.

Russia Environmental Analysis

Per capita income was very low.

Population spread across different places making

difficult to supply, oversight and marketing difficulties. Unavailability of skilled machinist. Yet to join Industrial Revolution. Capital, Legal and Credit institutions were underdeveloped.

Russia
1859- Started Sales 1860- Signed a non exclusive with an independent agent
1867- Selling variety of consumer product

Operational Deficiency In Russia

Year 1860 -70 Issues Approach Non availability of Promotion done Singers personnel to through independent demonstrate or conduct retailers. after sales service. Worldwide depression

1873-79

Most of the Singers agent in Russia was from Austrian and German. Half of all employees were doing translation from German to Russian.

Alfred Flohr Strategies In Russia

Combined the role of canvassers and collectors. Monitored the agents through hire books. Collected deposits from agents of amount 300

ruble or payment of 20% of sales commission. Collections commission were higher than sales commission (opposite to that in US). Agents account were limited to 100( to have effective control on the customers). Eliminated good and bad account distinction. Increased the credit period from 2 to 4 years and introduced barter system.

Alfred Flohr Strategies In Russia

Eliminated contract with agents to avoid paying

stamps and income taxes. Guarantee Fund

Smaller part of agent commission paid immediately. Larger part kept until customer has completed

payment. Once the man left Singers employment all accounts were cleared.

Issues Faced In Russia

Inability of Russian to manage people.

Demand much higher than production capacity.

Podolsk Factory Issues & Solution

Issues
Russian workers has no experience in working in

modern production facilities. Holiday Evil

Work only 233 days in a years i.e. 19 days in a month.

Lacking commitment towards work.

Solution
European and American workman to teach recruits. More foreman and assistant foreman to watch over

inexperienced workers. Paid 75% more.

Podolsk Factory Result

Managed to make the factory one of the efficient

production system. Able to extract 10 hour workdays, 58.5 hour workweeks, and 288 day work year.