Comparing apples with apples : Compac Sorting targets California

Abstract

Compac Sorting is an Auckland, New Zealand, based designer and manufacturer of fruit grading and sorting systems. The company was founded in 1984 by Hamish Kennedy based around a solution he designed while still at university for his family’s kiwifruit farm. By 2001, Compac had diversified into a range of fruit sorting applications, and had become the dominant equipment supplier in the domestic market. Overseas sales had been opportunistic through their first decade, but through the mid and late 1990s, the company had established strong distribution relationships in key global markets. This case study follows the firm’s attempts to enter the lucrative Californian market, a sales initiative led by David Buys. The choices Compac faced in making this move are presented, offering a practical learning situation for growing technology-based enterprises seeking to enter major new markets. Includes questions for dicussion. NOTE: This case is also available as a teaching case from the University of Auckland Business Case Centre, Case Number: UA-2005-005