The Finnish company is one of the largest manufacturers of elevators and escalators worldwide, and also provides maintenance services and modernization solutions. In addition, Kone (www.kone.com)
builds and services automatic doors and gates. The company provides local service for builders, developers, building owners, designers and architects in 1,000 offices in over 50 countries. Since 1924, Kone has been owned by one of Finland’s wealthiest families, the Herlin family.

There are four global large elevator and escalator companies. These are, in addition to KONE: Otis (part of the United Technologies group), Schindler and ThyssenKrupp Elevator (part of the Thyssen-Krupp group).
Otis is regarded as the world market leader for new equipment. Kone has around 18.5 per cent market share in the world market for new equipiment. There are also many more local competitors. The new equipment business has a much higher degree of consolidation than the service business, which is more local.
Questions
1. Try to describe the complex decision-making process regarding choice of supplier for installation of new elevators and escalators in a building.
2. What are Kone’s key challenges in establishing long-term relationships with its new global customers?

Transcribed Image Text:

FIZOX Kone elevator test building Source: copyright KONE Corporation. Kone Glass Elevator 1000 600