Stewart Glapat Corporation vs. Caljan (a)

10 Pages Posted: 21 Oct 2008

See all articles by James G. Clawson

James G. Clawson

University of Virginia - Darden School of Business

Andrew Spreadbury

affiliation not provided to SSRN

Jean M. Kane

University of Virginia - Darden School of Business; Vassar College

Multiple version iconThere are 2 versions of this paper

Abstract

This series of cases (see also the B [UVA-OB-0629], C [UVA-OB-0630], and D [UVA-OB-0631] cases) continues the story of the Stewart Glapat Corporation (see UVA-OB-0348 through UVA-OB-0352) with the description of a serious competitive challenge issued by a huge European firm in the early 1990s. In the A case, the company's major client informs it that bids will now be competitive, although Stewart Glapat has a dominant market position in the United States.

Excerpt

UVA-OB-0628

STEWART GLAPAT CORPORATION VS. CALJAN (A)

As he hung up the phone, William Tanner Stewart shuddered with the realization that, for the first time, his company had a real and dangerous competitor. For over 40 years Stewart Glapat Corporation (Stewart Glapat) had been the major manufacturer of long, structural-steel telescoping conveyors in the United States. But a procurement officer for Federal Express, one of Stewart Glapat's most valued customers, had just told Stewart that Federal Express had qualified a competitor for supplying its telescoping conveyor belts. After having used Stewart Glapat exclusively for the past five years, Federal Express had suddenly decided to consider Caljan as a qualified, additional supplier.

In recent years, Stewart had not considered that he might have a major competitor in his primary market niche. He knew Caljan: a Danish company that manufactured short telescoping conveyors, primarily for the European market, with some sales in the United States. But Stewart had just learned that Caljan, having expanded its operations in the United States, had designed a lower-priced, long conveyor that apparently met the needs of Stewart Glapat's customers. In the midst of his surprise, Stewart contemplated his options for response. He had always considered competing on price—rather than on quality, service, and track record—as a form of failure. Now, however, he might be forced to lead his small design and manufacturing company into a price war with Caljan, a large corporation.

Background

In 1985, Stewart left his teaching career at the Darden Graduate School of Business Administration, University of Virginia, to return to Zanesville, Ohio. Stewart succeeded his brother, Charlie, and became president and chief operating officer of the business that their father started in 1941. Charlie became chief executive officer. Before this transition, Stewart had pursued a career in engineering and business education. After graduating from MIT in 1969, he earned a Ph.D. at Ohio State University. He taught as an assistant professor at Purdue University for four years before moving to the University of Virginia, where he became an associate professor of operations at the Darden Graduate School. From 1969 to 1976 he had also served as vice-president of engineering for Stewart Glapat. Stewart, his brother Charlie, and their mother were sole owners of the business after their father died in 1978.

. . .

Keywords: entrepreneurship, strategic alliance, international, alternative business issue or setting

Suggested Citation

Clawson, James G. and Spreadbury, Andrew and Kane, Jean M., Stewart Glapat Corporation vs. Caljan (a). Darden Case No. UVA-OB-0628, Available at SSRN: https://ssrn.com/abstract=1281259 or http://dx.doi.org/10.2139/ssrn.1281259

James G. Clawson (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/clawson.htm

Andrew Spreadbury

affiliation not provided to SSRN

No Address Available

Jean M. Kane

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Vassar College ( email )

124 Raymond Avenue
Poughkeepsie, NY 12604
United States

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