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Verklar is the leading maker of roof windows based in Europe. Its Austrian subsidiary has historically dominated the Austrian market, with about 85% market share. However, at the time of the case, its market share has dropped to about 75%, and many of its dealers have either dropped the line entirely or are buying not from the company, but from the few remaining large dealers who still buy directly from Verklar. This has prompted the president of the subsidiary to devise a new way—called the Quota System—to run the distribution channel in the country to improve performance. Asks the reader to examine the sources of market share decline and whether the proposed Quota System solves the channel's problems.
© The Kellogg School of Management at Northwestern University
2001
Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. The company name and certain facts have been disguised at the request of management. The case is set in the mid-1990s, but the exact timing of the case, and the name of the company, have been disguised in the interest of company privacy. To order copies or request permission to reproduce materials, call 847-491-5400 or e-mail cases@kellogg.northwestern.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Kellogg School of Management
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