PALO ALTO, CA — Frost & Sullivan’s recent analysis, North American Ignition Wire Sets Aftermarket, selected Prestolite Wire Corp. as the recipient of the 2005 Competitive Strategy Leadership Award for outstanding achievement in capturing significant market share. This is no small achievement in the mature wire sets aftermarket. Prestolite Wire Corp. has been a supplier of automotive ignition wiring products since 1911.
Every year, Frost & Sullivan presents this award to a company that has successfully implemented unique and innovative strategies that have strengthened its competitive standing in the market.
“The competition in the North American ignition wire sets aftermarket is rated as extremely high with participants vying for a shrinking base of vehicles and channels for distribution,” said Frost & Sullivan Research Manager Jasmine Sachdeva. “Armed with this knowledge, Prestolite embarked on a process to enter the market by instituting a sound strategy that has resulted in significant market and mind share growth for the company during 2005.”
Realizing that the declining original equipment (OE) installation of traditional wire sets was likely to affect its OE role in the long term, Prestolite started developing an aftermarket program for ignition wire sets. The company began this process as far back as 2000, much ahead of its actual entry into the wire sets aftermarket.
Supported by extensive market research, Prestolite identified that its key end-user group — the installers — had a strong preference for OE fit, form and function ignition wire sets. Using this research and building upon its OE experience and expertise, Prestolite was able to introduce products that accurately addressed these needs, said Frost & Sullivan.
According to the firm, this astute combination of strong OE experience and rigorous market research led to a phenomenal increase in demand for OE fit, form and function wire sets from retailers and private labels. Prestolite obtained a significant market share for a new entrant into the market in 2004. This metric is significant since it indicates Prestolite’s increasingly strong competitive position and is propelling other participants to introduce premium wire products in an attempt to remain competitive.
By building alliances with original equipment service (OES) channels, Prestolite has further leveraged its OE fit, form, and function platform. Today, a substantial number of OES channel members source wire set products from Prestolite. This indicates that the company provides these channel customers and participants with the quality demanded by installers in this channel and independent installers.
“In terms of a competitive strategy, this has allowed Prestolite to gain greater mind share within established OES brands and through the aftermarket,” said Sachdeva. “Prestolite’s innovative approach truly distinguishes it from other market participants and makes it the deserving recipient of the 2005 Frost & Sullivan Award for Competitive Strategy Leadership.”
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