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CM'S verdict

12th January 2006
Page 9
Page 9, 12th January 2006 — CM'S verdict
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Which of the following most accurately describes the problem?

IT WAS certainly Daf's year. Fora company to lead the market in all sectors is an outstanding performance which demands more than a decent product line-up and some shrewd marketing (although both of these factors have apart to play).

Industry observers point to Dars pricing and its pencil would appear to be sharper than most... if we didn't know better, we'd say it was due to discounting. However we do know better.

We know parent company Paccar does not risk profitability, and being market leader in the UK won't be driving the strategists in Seattle. Therefore we can only assume the reason Oaf can offer trucks cheaper than anyone else is because they can build them cheaper than anyone else.

The Oaf organisation is one that delivers high value to customers at a competitive cost. The rest of the marketwill need to realise that and react if wants to challenge Daf's dominance.

Tags

Organisations: Oaf
Locations: Seattle