Mueller-Lehmkuhl GmbH:
Statement of the Problem
Mueller-Lehmkuhl GmbH (MLG) is in a very curious position. In 1985, MLG was comfortably perched on top of the European apparel fastener industry, and while it has neither technological advantage nor other competitive strength against rivals, it has protected market share due to its long-standing relationship with its customers.
A new competitor has entered the mature European market, called Hiroto Industries (HI). HI has completely changed the landscape by successfully entering the market by giving a 20% discount to MLG’s prices and by attacking the high volume low-quality segment of the market, which makes up ...