Acknowledgement

First, we owe our particular gratitude to Mr. Harry Jayewardene the Chairman/ Managing
Director of Aitken Spence (pvt) Ltd for giving us the opportunity to carry out a research on
Competitive advantage of one of the subsidiaries of Aitken Spence group.
Mainly our sincere thanks goes to Mr. Kolitha Wijesundera, the Directors of ACE Elevators for
giving us his fullest support whenever needed, and highly appreciate the technical staff including
Mr. Rasika Amarasiri who helped us to gather information on technical background of elevators
in a short notice.
Most importantly we owe our gratitude to our lecturer-in-charge, Ms. Virangi De Silva, for her
invaluable guidance of this thesis. She has mentored and guided us for the past 5 months and
cultivated our capabilities of research. She gave us many insightful and constructive comments
along our research journey. It is always a pleasure to work with Ms. Virangi and appreciated her
remarkable help.
We would take this opportunity to thank each and every person not mentioned here, who helped
us to make this a success.
We dedicate this research for our friends and also who are interested in Business Management
field and future Researches.

Contents
1.0 GENERAL INTRODUCTION....................................................................................... 4
1.1 History of elevator industry......................................................................................... 5
2.0 Introduction to the Problem............................................................................................ 6
2.1 Statement of the Problem........................................................................................... 7
2.2 Research objective................................................................................................... 8
2.3 Purpose and scope of the study.................................................................................... 9
3.0 COMPANY PROFILE................................................................................................ 10
3.1 History of the company........................................................................................... 11
3.2 Management Hierarchy........................................................................................... 11
3.3 Product Portfolio................................................................................................... 13
4.0 Theoretical Perspective............................................................................................... 14
4.1 Chapter Overview.................................................................................................. 15
4.2 Competitive Advantages of ACE Elevators...................................................................15
4.2.1 Major Competitors of ACE Elevators....................................................................16
4.2.3 Gaining Competitive Advantage over Rivals...............................................................18
4.3 SWOT Analysis..................................................................................................... 20
4.4 Value Chain Analysis of ACE Elevators.......................................................................21
4.5 Porters Diamond Analysis to ACE.............................................................................23
5.0 Research Methodology............................................................................................... 25
5.1 Chapter Overview.................................................................................................. 26
5.2 Research design..................................................................................................... 26
5.3 Sources of data collection......................................................................................... 26
5.4 Sampling Plan....................................................................................................... 27
5.5 Assumptions......................................................................................................... 28
5.6 Research schedule.................................................................................................. 28
6.0 Data Analysis........................................................................................................... 29
6.1 Chapter Overview............................................................................................ 30
6.1.1 Analysis of the customer feed back..........................................................30
6.1.2 Market Share Analysis............................................................................... 35
7.0 Findings................................................................................................................. 40
8.0 Recommendations..................................................................................................... 44
2

9.0 Limitations.............................................................................................................. 48
10.0 Conclusion............................................................................................................ 50
11.0 Annexure............................................................................................................... 52
11.1 Bibliography.................................................................................................. 53
11.2 Questionnaires.............................................................................................. 53

1.0 GENERAL
INTRODUCTION

1.1 History of elevator industry.

History of this sector went to c. 287 BC c. 212 BC, the first elevator was made by Archimedes
probably in 236 BC. Some historical literacy source mention elevators as cabs on a hemp rope
and powered by animals or by hands. Some historical source mentions these kinds of elevators
were installed in the Sinai monastery of Egypt. In year 1000 al-Muradi author of the Book of
Secrets explained uses of an elevator-like lifting device, in order to raise a large battering-ram
to destroy a fortress. The archetypes of elevators were located in the palace buildings of England
and France in 17 century.
In this industry there was a new innovation happened, that was introduced screw driver elevators.
The first screw driver elevator was built by Ivan Kulibin and installed in Winter Palace in
1793. After few years later another Kulibin's elevators was installed in Arkhangelskoye. After
starting coal mines in 19th century elevators operated by steam power and used to move goods in
bulk in mines. In 1823 designed an ascending room for elevators it was designed for attracted
tourists and give panoramic view for passengers. This ascending room was built by two
architects, Burton and Hormer in London. A belt-driven elevator with a counterweight named
Teagle was innovated in 1835 by Frost and Stutt in England.
In 1846 Sir William Armstrong was invented hydraulic crane and that one added to elevators
because still they use steam power. In 1850 Henry Waterman was invented standing rope
control" for an elevators. Year 1852 was a another turning point of this sector, because Elisha
Otis invented the safety elevator that means if cable was broken cab of the elevator automatically
stopped and it will help to increase the safety side of this sector. Elisha Otis installed his first
elevator in New York in 1853. In 1880 the first electrical elevator was built by Werner von
Siemens in Germany and Frank Sprague was improved the safety side and the speed of the
electric elevators. Frank Sprague was the person who develops the idea about multiple elevators
in a single shaft.
J.W Meaker introduced a method which elevators doors to open and close safely and he had a
U.S Patent right about that idea. In 1887, American Inventor Alexander Miles of Duluth,

Minnesota patented an elevator with automatic doors that would close off the elevator shaft. In
2000 a vacuum elevator was offered commercially in Argentina.

2.0 INTRODUCTION
TO THE PROBLEM.

2.1 Statement of the Problem

World is moving fast, with a rapid development of technology. Current circumstance, leads
towards creation of people with different levels of needs. Circumstances will be strengthened
which is able to overcome it, the rest will perish or be extremely difficult to survive. All with all
the achievements yet there are certain negative constituents where ACE elevators must excel
their performances at.
With the prevailing technological devices ACE will have to struggle more when it comes to
installations and commissioning of elevators in order to outperform the competition. The existing
skilled laborers are insufficient to take up any comprehensive project. Lack of marketing efforts
to discomfit the competitors and most importantly quality issues with regard to installation
process minimizes the market share it has for their products.
During the recent past years the rapid spread of ACEs market share (see appendix ***)

2.2 Research objective

The objectives of the research mainly can divide in to as general and specific. These general
objectives directly emphasize on core purpose of the research and the specific objectives are
always act as supportive objectives therefore identify the general and specific objectives are vital
in order to meet the success of the research. Furthermore when once the researchers achieve the
supportive objectives eventually researchers may able to accomplish the core objective.
Researchers have set all the objectives with the intention of given time framework and available
resources in order to ensure the achievability of the goals. (Refer appendix 2)
Primary objective
Topic - "Analysis on Gaining Competitive Advantage of ACE Elevators in B2B Market.

To identify the different competencies owned by Ace Elevators in achieving competitive

advantage.

The general objective clearly confer correct path to researchers, in order to achieve a successful
research outcome. It mainly comprises the basic core competencies of Ace elevators. The basics
of the study exposed as to how they should retain the consumers and further recommending ways
to ameliorate the installation process through continuous improvement.
Secondary objectives

To identify the drastic competition faces by Ace Elevators

This objective demonstrates determine the comprehensive competition that Ace elevators is
exposed to and in identifying the ascendency of industrial competitors the researchers are
expecting to use stratified sampling method. Accomplishment of this goal is vital to researchers
due to highlight the relationship between competitive advantage and competition.

To identify hidden technical and human capital issues faces by Ace Elevators.

Researchers have used several research techniques to gather relevant information, knowledge
and to get better experience in order to fulfill this objective. This comprises human capital
related issues and other technical barriers in gaining competitive advantage.

2.3 Purpose and scope of the study

Since 2009 Ace elevators has been achieving significant improvement through winning
significant contracts both local and foreign. Therefore the research study is basically dealt with
identifying the core and threshold competencies hold by Ace elevators. Foremost significances of
the study are engaged with following aspects.

To identify the satisfaction levels of the consumers.

Provided the questionnaires to industrial consumers (B2B) therefore, the study allows the
researches to make a clear judgment on the consumer satisfaction with regard to their
performances.

To identify the core and threshold competencies of Ace elevators

This assists to gather information and provide instances on credibility, professionalism, recourse
based competencies etc. of Ace elevators which assist them to achieve competitive advantage
over the aggressive competition.

To identify the areas of improvements

3.0 COMPANY
PROFILE

10

3.1 History of the company

Established in 2009 as a subsidiary company of Aitken Spence Company, now AE Lanka
(PVT) LTD is the local sole agents for KOYO lifts & escalators (China), DALDOSS micro
lift (Italy) & ACORN Stair lifts (UK). As the Professional designer, installer and provider of
mechanical service of Elevators, Escalators, Passenger conveyors and car parking system
they serve more than three overseas countries including Maldives, India and Singapore.

3.2 Management Hierarchy

Chairman- Mr. D.H.S Jayewardene

11

He is one of Sri Lanka's most winning businessmen and heads many successful enterprises in
very diverse fields. He is the Founder Director and current Chairman/ Managing Director of
Aitken Spence group of companies.

Deputy Chairman Mr. J.M.S Brito

Together with multi-disciplined knowledge, he also brings with him a wealth of 35 years of
international experience working with a number of international organizations. Presently Mr.
Brito is the Deputy Chairman and Managing Director of Aitken Spence PLC.

Finance manager - R. E.V. Casie Chetty

He is the Company Secretary and finance manager of Aitken Spence PLC., and a Director of
Aitken Spence Group Ltd

Director (Subsidiary) Mr. A.A.K.M Wijesundera

He is the first person to introduce GEN2 elevators to Sri Lanka and the driver of the success of
the company, whos responsible for handling business development issues and sales of the
company,

3.3 Product Portfolio

This compromises of the following items:

1. Passenger elevators.
12

o A passenger elevator is designed to travel people between a floors of the building

2. Freight elevators
o Freight elevators are designed to move goods and heavy items rather than for
passengers.
3. Panoramic elevators
o Panoramic elevators are with transparent walls offering observations of the
surrounding area from the cabin elevator.
4. Escalators
o An Escalators is a conveyer transport equipment or a moving stair case which
moves passenger between different of the building.
Heavy duty escalators
Light duty escalators
5. Car Lifts
o Car elevators typically use to move cars into the parking garage and specially uses
with in a building with a limited capacity.

6. Chair Lifts
o Modern Chair lifts are with a wide range of features with adjustable seat height,
battery isolation switch etc.which is mainly designed to fit in to a stair case to
carry disable or old passengers. (Refer Appendix 03)

13

4.0 THEORITICAL
PERSPECTIVE

14

4.1 Chapter Overview

This chapter typically deals with a comprehensive analysis about information and surveys which
are based on different concepts of the title of the research study.
4.2 Competitive Advantages of ACE Elevators
The Concept of Competitive Advantage
The concept of competitive advantage has been a major element of each and every companys
Business strategy. Statements regarding competitive advantage abound, but a direct definition is
not to be found. When studying the use of the term competitive advantage in the strategy
literature, the common theme is value creation. Competitive Advantage was established in early
1985 as the vital companion to the Competitive Strategy. While competitive strategy mainly
focused on the Industry, Competitive Advantage concentrated more on the firm. It is an
advantage that a firm has over its competitors, letting it to make greater sales and retains more
customers than its competitors. Competitive advantages allow a company an edge over its
competitors and a capability to generate greater value for the company and its stakeholders. The
more sustainable the competitive advantage, the more challenging it is for other firms to
neutralize the advantage. Competitive advantage includes communicating a greater value to the
target market than its competitors. This can be accomplished through many avenues including
providing a better-quality product or service, reducing prices and increasing marketing efforts.
Sustainable competitive advantage means maintaining a healthy position over the long term,
which can aid to increase a company's good will and reputation at the marketplace, its valuation
and its long term earning potential.

15

4.2.1 Major Competitors of ACE Elevators

After the end of the civil war in Sri Lanka, countrys economy is vastly growing and it invites
both local and foreign businessmen to invest in businesses. Due to that fact, ACE Elevators has
to face competition from both local and foreign competitors. Local competition basically divided
into two categories.

Internal Competition
External Competition

ACE Elevators internally compete with the OTIS Elevator Company. World's leading
manufacturer of vertical transportation systems is OTIS Elevators; they are mainly aiming
on elevators and escalators. Even though both companies produce the same variety of products,
they are running as two separate businesses managed by two different administrations. This is
done basically to increase the productivity of the company and to improve quality by originating
a competition within the firm. Both these companies are subsidiaries of Aitken Spence Company.

In the External Competition, ACE Elevators has to face both local and foreign competition.
Though there are higher number of foreign competitors, company largely emphases on the fewer
number of local competitors who can mark massive impacts on the companys success. Some of
their local competitors are listed as follow.
SANYO Elevators and Escalators (PVT) LTD - They are the exclusive distributors and
sole agents for Sanyo Yusoki brand elevators, escalators, home elevators and car parking
system in the Asian territory namely Maldives and Sri Lanka. The company has been set
up by experienced and qualified professionals who had rich and long experience from
worlds top elevator companies. However, main principle and manufacturing factory
being based in Taiwan they still struggle to beat the competition due to price skimming
strategy used by them.
KONE Partners Lanka Elevator Engineering Company - Expanding Its operations
into the Sri Lankan market and have entered into a distributorship with Lanka Elevator
16

Engineering (Pvt) Ld., which has about 30 years of experience in installing, preserving
elevators and escalators. But still they have not being able to grab a significant market
portion in Sri Lanka compared to ACE; nevertheless KONE will be an upcoming giant in
future.

None of these Firms manufacture Elevators inside Sri Lanka, what they are undertaking is, when
a particular customer place an order, firms send an order to their principal company in order to
import Elevators and their spare parts and then assemble and install them in Sri Lanka. ACE
Elevators has to compete with those foreign firms, so they are getting into agreements with
foreign manufactures who supplies products for a lesser price but with a higher quality. Their
foreign competitors are,
Mitsubishi elevators and escalators - A foremost name in elevators and escalators
since the 1930s whose the biggest competitor of ACE , Mitsubishi elevators has built-up
a status for creating breakthroughs that make getting around more comfortable, secured,
and yet inspiring. Mitsubishi elevators and escalators are explicated by the
slogan, Quality in Motion. Its a concept that has developed out of an attention to point
that manifested in exceptional-quality products which provide a clear customer attraction
towards their products.

4.2.3 Gaining Competitive Advantage over Rivals

One way, ACE Elevators have gained their competitive advantage is their low prices. Customers
have a bad perception as lesser priced products are not up to the standards. But ACE Elevators
have proven that wrong by providing high quality products for a lesser price. Key reason for this
is that the company ACE Elevators were able to come to an agreement with a foreign
17

manufacture from China, KOYO Elevator Co, LTD who supplies quality assured raw materials
for an affordable price. Also due to the economies of scale, ACE Elevators were able give their
consumers quality products for a lesser price. Also in the year 2011, the company has reduced
their price by 10% to 20% in order to become competitive with their main foreign competitors,
Mitsubishi and Sigma.
Higher degree of Customer Focus is another factor which has facilitated the company to gain
competitive advantage. Through the questioner provided to ACE Elevators consumers, it was
proven that virtually all the consumers have rated companys customer focus as Excellent. This
is generally because of the information they provide and every consumer can access to their
information. ACE Elevators are sustaining a budgetary price list which is available for Sri
Lankan and Maldives Market. Also they have the ability to present a firm quotation on request.
Superior after sales services and regular communication with the consumers has aided the
company to gain competitive advantage. Elevators must be regularly tested in order to assure its
safety and it is a key aspect which customers look into before they purchase. ACE Elevators offer
an efficient service supported by totally qualified lift engineers. They respond quickly to call outs
and repairs and their capability to manufacture in-house combined with technical expertise
means that their clients see them as easy to do business with. The company has highly skilled
resident engineers. All of these features add up to one huge benefit for their clients. They get
a cost effective, one-stop lift engineering company able to meet all requirements with speed and
efficiency.

ACE Elevators has recognized that conducting standardized after sales services can gain them an
advantage over their rivals. As after sales services they are mainly providing,

18

Regular Cleaning.
Precautions to be taken before start up.
Ensure no pending works.
Ensure all rescue tools are in place.
Energizing practice.
Test the alarms and Interphones.
Indication and door operation.
Providing service technicians and call back technicians.

They have assured the safety of their products to their customers and in their Mission Statement
they have stated, that their main aim is to achieve 100% lift safety and 100% lift reliability to
reduce inconvenience and costs to their customers, caused by lift breakdowns. Their mission is to
accomplish this by great quality preventative lift maintenance tailored to each individual lifts
needs, joint with unique, innovative solutions formed through constant in-house research. In
short, their aim is to provide excellence through innovation.

4.3 SWOT Analysis

Strengths
ACE Elevators uses latest technology in their manufacturing process that excels the quality of
their products and the company has stable clients that ensure specific amount of revenue can
19

generate per year. ACE Elevators is a large scale business organization which also runs in
Maldives, gaining advantage of cost leadership pricing.
Weaknesses
ACE Elevators are facing internal competition (OTIS Elevators Company) that has risk of
employees might go outer of the company goals, vision & mission which causes conflicts.
Employee safeness is not fully met by the company because of poor safety strategies and
unreliable safety kits.

Opportunities
Due to globalization ACE Elevators are getting opportunities to connect with quality material
suppliers & new customers around the globe which help them to enhance revenue & reputation.
Under Mahinda Chinthana government program there are many infrastructure development
projects available to launch, which can increases demand for ACE Elevators various types of
products (lifts, escalators etc).
Threats
ACE Elevators are facing threat from external competitors in the industry (Mitsubishi, Hitachi
etc), that diminishes orders from clients. Exchange rate changes & inflation rate fluctuations has
high possibility of increasing the entire process cost, which affects profitability of the company.
Also there is high chance of migrating skilled labors at present, which can restrict the company
to find most appropriate candidates. (Refer Appendix 04)
4.4 Value Chain Analysis of ACE Elevators

Inbound Logistic
ACE Elevators do not make their products their own, they used a third party. They import all
parts from china well recognized company called KOYO Elevators and they assemble in that

20

part in Sri Lanka. But all the parts they imports maintain quality standers that was created by
ACE Elevators. They used J.I.T approach to handling imports.

Operations
This is the step where imported parts are assembled. Individual process could include organizing
the parts to make elevators and checked the safety side of the each equipment. ACE Elevators are
famous for their reliability which comes from efficient operation.

Outbound Logistics
Output of the production process at the plant, ACE Elevators Company directly supplies their
products to customers. They manage their own showrooms in different countries.

Marketing and Sales

ACE Elevators imports their high quality parts from china (KOYO Elevators), because of that
comparing to other competitors in this industry price is low. As well as they have good adoption
to global culture and customs.

Service
Provide service to enhance or maintain the value of the products. This includes all the areas of
service. In ACE Elevators they provide good after sales service, final safety checking,
complaints handling, and training. As well as ACE Elevators value their customers.
Firm Infrastructure
21

ACE Elevators have high brand recognition among their industrial customers. In Sri Lanka they
work as a sub company of well known company called Aitken Spence Groups, to assemble
their products they used fully computerized systems with human as operator.
Human Resource Management
Employees are very important and an expensive resource to ACE Elevators. They consider their
employees as Human Capital. They used recruitment, selection, training and development,
compensation to retain employees.

Technology Development
They mainly focus giving more user friendly products to their customers and always try to
protect elderly people who are using their products. Uses emergency response technology where
it gives a signal whenever there is an error or when lift gets stuck.

Procurement
They used distribution agreement, parts purchasing agreements and agreement between their
customers for their procurements.

4.5 Porters Diamond Analysis to ACE

(Refer Appendix 05)

Factor Conditions

ACE Elevators has highly skilled workforce who are extremely focused and diligent, which is
the biggest strength of ACE. They consider their employees as Human Capital. Although lack
22

of training and development for their employees, restrict them from gaining new technological
advancements in to practice. Further ACE Elevators have good capital resources and
infrastructure. But they do not make their products their own, they used a third party. They
import all parts from china well recognized company called KOYO Elevators.

Demand Conditions

The company is involved in the manufacture, supply, export and service of all kinds of lifts
catering

to

number

of

places

like

hotels,

hospitals,

office,

banks

and

etc.

Ace Elevators is Business to Business organization (B to B). They understand their customers'
needs, preferences and offer products/product features that suits to their organizational
requirements, built for all industrial purposes and available with a range of choices and
specifications. One of the most important of our strengths is the strategy of competitive pricing
that they follow. Then customer bargaining power is low. Because there price is low and
maintaining good quality.

Related and Supporting industries

Government can influence the supply conditions of key production factors, demand conditions in
the home market, and competition between firms. Government interventions can occur at local,
regional, national or supranational level. The Ace elevators import all parts from china. It means
produce there inputs which are important. Then industries provide cost-effective inputs, then the
government charge import tax.

Firm Strategy, Structure and rivalry

Ace Elevators, established in the year 2010 its one of the most respected a prominent
manufacturers of all kinds of lifts. It involves in the manufacture, supply, export and service of
all kinds of lifts to the B to B market. An ace Elevator is a world famous company, but they have
many competitors. The largest competitor is Mitsubishi elevators. The second largest is Sigma
Elevators. Then People can choose varieties of products. But it is not big affect to the Ace
elevators, because one of the most important strengths is the strategy of competitive pricing that
23

they follow. And also provide after sale support to their customers for training on operation of
the equipment including repairs, if needed. (Refer Appendix 6)

24

5.0 RESEARCH
METHODOLOGY.

25

5.1 Chapter Overview

This chapter basically explains the methodology used to identify How Ace elevators has renewed
customer confidence and made remarkable progress. It also describes how the sampling was
done, and the data collection methods (primary and secondary) implemented and also
emphasizes on the assumptions and the limitations which involved in gathering, and analyzing
the data accordingly throughout the research.

5.2 Research design

The main objective of this research is to identify how Ace elevators has renewed customer
confidence and made remarkable progress. While addressing this objective we came across the
issues which the company faces. Therefore finding out new ways/ strategies to overcome the
issues, while continuously improving ACE elevator-products, were also considered throughout
the research.

5.3 Sources of data collection

The data gathering process and sampling plays a major role in order to define the problem and
coma up with recommendations. The sources of data collection can either be direct or indirect
but should be accurate
Primary sources
o Questionnaires
o Interviews
The sources from which the first hand data can be gathered are primary sources. Data which are
gathered from these sources are not manipulated or processed therefore the reliability is very
high.
During the research we have used several methods to gather primary data. These methods are
more reliable, quick and accurate. Basically, to gather customers information we used a
questionnaire and to assess the engagement of human capital in achieving the competitive
advantage a separate questionnaire was prepared for employees.

26

Other than that to have an overall knowledge of the company and its operations we had
interviews with the respective people in the particular company. We conducted an interview with
the general manager of Ace elevators to gain a better knowledge about the company background,
its competitors and the issues which the company is facing.
The product details and all information regarding sales, technical issues, competitive products
etc. were gathered by the interview conducted with the product manager.

Secondary sources
o Company web site
o Company Annual report
o Customer complaint reports
o Tender Documents
The sources which the previously gathered data can be extracted are secondary sources. These
data are prerecorded and noted before by someone (not by the user) and are available in a more
detailed manner.
Some secondary sources are also used in order to prepare the report with more detailed. The
internal secondary sources such as the customer complaint records and feedback reports and
previous researches done by the company itself and the external secondary sources such as the
official company website, and few other websites

5.4 Sampling Plan

Sampling plan is the method which uses to analyze the total population by analyzing a small
group which is selected from the population.
Sampling Method - The population which considered for this research was all the building
construction companies (B2B) who use ACE elevators for their projects. Since the number of
such users is comparatively limited, it was possible to consider the majority of the population
with less constraint. The sampling method used for this research is random sampling method.
This method gives an equal chance of being selected for the sample. Therefore the consumers
were randomly selected.
Sample size The number of consumers which was selected for the sample is the sample size
for this research. According to the sampling method we could select industrial consumers
(construction companies) who are smaller in numbers. However, the researchers have been able
to distribute 30 questionnaires, out of which 27 has been returned by the company.
27

5.5 Assumptions
Basically in any research the researchers are making certain assumptions. One of the important
assumptions the reseachers made was that selected sample is representing the population.
Further, one of the basic assumptions the researchers had to made is that the information
provided by the customers and the competitors are true and up-to-date.

5.6 Research schedule

Particulars

Number of days

Understanding the requirements of the research

Selecting a suitable research topic and an
organization
Study the background of the company and find out
how we could start doing the research
Identified the consumers (construction companies)
of the company.

05
02
05
03

Preparation of questions

03

Distribution and recollection of the questionnaires

Visiting the organization and meeting the general
manger.

05
04

Meeting with the product manager

03

Data analyses

10

Report preparation

10

Total number of days

50

28

6.0 DATA ANALYIS.

29

6.1 Chapter Overview

In this chapter, researchers describe and analysis the final results of the data, which were
gathered through the relevant methodologies. The analysis of the final results is presented
through tables and graphs.
6.1.1 Analysis of the customer feed back
(Refer Appendix 11)

Product Quality
Table 01

Ratings
0%-20%
21%-40%
41%-60%
61%-80%
81%-100%
Total

Customers
0
0
0
11
16
27

Inference:

Product Quality
20
15
10
5
0
Customers

11

16

Product Quality

Rating

According to this
graph we can clearly identify customers have good attitudes about product quality of ACE
30

Elevators (Pvt) Ltd. We found out of 27, 16 customers said Ace Elevators product quality is
excellent.
Figure 01

Communication

Table 02
Ratings
0%-20%
21%-40%
41%-60%
61%-80%
81%-100%
Total

Customers
0
0
01
12
14
27

Inference:-

31

Communication

Customers

16
14
12
10
8
6
4
2
0

12

14

1
0

Communication

Rating

Accord
ing to this graph it indicates ACE Elevators maintain good communication process with their
customers as well from our research we found out of 27 customers, 16 customers are satisfied
with their communication process.
Figure 02

Customer Focus
Table 03
Ratings
0%-20%
21%-40%
41%-60%
61%-80%
81%-100%
Total

Customers
0
0
09
12
06
27

Inference:

32

The graph shows that the customer centric approach taken by ACE is average. According to the
research we found all the 27 customers being approached by the researchers paid interest in
giving better ratings under this topic.

Figure 03

Customer Centric
14
12
10
8
6
4
2
0
Coustomers

12
6

Customer Focus.

Rating

Delivery

33

Table 04
Ratings
0%-20%
21%-40%
41%-60%
61%-80%
81%-100%
Total

Customers
0
0
13
12
02
27

Inference:
The following graph shows up the satisfaction level of customers on the Delivery Process.
According to this graph it illustrates more than 25 customers have not been satisfied with the
delivery process of ACE elevators.

Figure 04

Delivery
14
12
10
8
6
4
2
0
Coustomers

12

13

2
0

Delivery

Rating

After Sales Service

34

Table 05
Ratings
0%-20%
21%-40%
41%-60%
61%-80%
81%-100%
Total

Customers
0
0
13
09
18
27

Inference:
This graph illustrates the customer satisfaction level with regard to ACEs after sales services

provided to their customers.

Figure 05

After Sales Service

Customers

20
18
16
14
12
10
8
6
4
2
0

18
9

After Salse Service

Rating

35

6.1.2 Market Share Analysis

Table 06

Year

ACE Elevators

Competitors sales

sales
2009
2010
2011
2012
2013

10
39
47
44
57

247
290
345
406
476

Inferences:
The below graphs signifies the analysis of market share hold by the ACE Elevators for five
consecutive years from 2009 to 2013 Mid.

Market Share
500
450
400
350
300
250
200
150
100
50
0

476
406
345
247

10
2009

290
ACE Elevators

39
2010

Competitors

47
2011

44
2012

57
2013

Figure 06

36

Sri Lanka and Maldives Market Caption under Maintenance

Table 07
2009

2010

2011

2012

Total Market

968

1160

1235

1487

ACE Share

480

510

558

596

Inferences:
This particular graph shows the market share occupied by ACE in providing maintenance
services in both the countries that they are serving compared to total market.

37

Figure 07

Sri Lanka and Maldives Market Caption under Maintenance

1600
1400
1200
1000
Sales

800

Total Market

ACE Share

600
400
200
0

2009

2010

2011

2012

Years

Main competitor offers Vs ACE offers

Inferences This particular table shows the price comparison between ACE elevators and the
main competitor Mitsubishi.
Table 08

Date

26th
June

Ref: No

Q/Ace/P/13/06/
784-(D)-12

Site

Hambantota
Harbor

Specifications

TKJ800Model
passenger elevator

CIF Price
ACE

Mitsubishi

US
$20,788/per

US$
29,820/pe
38

Price
Diff
(%)
56.5%

2013
16th
Ace/KW/PP/041
October /12
2012
4th
Q/Ace/P/11/10/5
October 03
2011
1st
Q/Ace/P/12/02/
Februar 563
y 2012
25th
Q/Ace/P/12/07/
July
497-(B)
2012
(Refer Appendix 06)

unit

r unit
US$
6,798/per
Unit
US$
32,390/Pe
r Unit
US$
27,820/pe
r Unit
US$
28640/Per
Unit

Colombo
Dockyard Ltd.

Micro
Elevator

Freight

US$ 4,178/per
unit

Hotel
-Kandy

TWJ 1000 Model

Passenger elevator

US$
26,900/per
unit
US$
22,350/per
unit
US$ 20,980/
per unit

Devon

Softlogic
Holding Plc

TWJ 1000 Passenger

elevator

Blue Water Hotel

TWJ800
Model
Passenger elevator

62.7%

20.5%

24.4%

36.5%

Price comparison6 Information were abstracted from ACE elevators quotations and
documents provided for certain Business entities offering prices.

Assessment of Human Capital possess by ACE Elevators

ACE elevators submit that its problematic that individual resource is often used as the unit of
analysis to investigate competitive advantage. In assessing the internal capacity of ACE the
researchers have conducted an employee assessment process as well. The results of the same is
as follows:
Table 09
Ratings

Categor
y 01

Categor
y 02

Categor
y 03

Category
04

Categor
y 05

39

Strongly Agree

08

05

08

05

09

Tend to Agree
Neither Agree nor Disagree

04
00

06
01

04
00

05
02

03
00

Tend to Disagree

00

00

00

00

00

Strongly Disagree

00

00

00

00

Total

12

12

12

12

12

Category 01 - Proud when I tell others I am part of this organization

Category 02 - Would recommend ACE elevators as a better working place.
Category 03 - Think that providing incentives would increase employee performances
Category 04 - ACE provides room for creative excellences in employees
Category 05 - ACE has superior technology to outperform the competition

Inferences:
This particular graph shows the operational or floor level employees attitudes towards the
company and its operations in relation to other brand competitors.

40

9
9

8
7
6

6
5

4
3

Category 01

Category 02
Category 03

Category 04

Category 05

0
0

0 0 0 0 0

0 0 0 0 0

Figure 09
(Refer Appendix 07 )

See Appendix

07 to

find the attached employee questionnaires and feedback given by the

employees.

41

7.0 FINDINGS.

42

The study reported that stakeholder management helps to sustain competitive advantage through
advancing a firms resource capacity, commitment, developing capabilities, and building
relationships. Stakeholder management has also impacted ACE Elevators by generating several
isolating mechanisms that preserve competitive advantage, including time compression
diseconomies, casual ambiguity, social complexity, and transaction cost.
As per the gathered information the relevant findings are s follows:
Table 01
According to the gathered information out of 27 businesses there are more than 15 industrial
customers who are highly satisfied with the Product quality which represent 59% of the total.
The rest of the feedback was between 61%-80%. It implies that the high quality of equipments
gain competitive advantage. (Installation and commising)
Table 02
According to the analysis customer satisfaction towards the communication process of ACE
elevators are at a higher level where out of 27 customers (B2B) 51% have ranked as Excellent.
Higher number of approaches to customer requirements, higher number of visits paid to sites and
effective problem solving techniques that have been used by ACE elevators brings in competitive
advantage over competitors. (Refer Appendix 08)
Table 03
The word Customer Centric denotes ACE elevators ability to orient the products to fulfill the
customer requirements.
This graph clearly indicates that the customer Centric of ACE elevators is in the moderate
level. According to the research, the researchers have found more than 77% of customer
perception towards the particular process is in between 41%-80%, despite of that 22% of
customers rated Excellent with regard to Customer Centric.

43

Table 04
According to this graph it illustrates that ACE Elevators has been underperforming in the
delivering process, because more than 92% of customers satisfaction with their delivering
process is moderate. KOYO the manufacturers of elevators and escalators who are based in
China needs more time to proceed with the manufacturing and the long distance between two
plants results in long delay in shipment. In order to mitigate the risk ACE takes a less time period
for installation and commissioning process. (Refer Appendix 09)

Table 05
According to this graph it illustrates ACE Elevators have been performing well in delivering
after sales services to their customers where more than 70% customers have paid interest to place
Excellent in the given questionnaire with regard to after sales services. Within the given
warranty period, the services provided for customers will be at no cost. Further on call services
will also be provided by the maintenance engineers, which assist to excel their performances
over the competitors. (Refer Appendix 10)

Table 06
According to the bar chart, can identify in the year 2009 ACE Elevators had 4% market share in
the industry which is very low. That has increased in the year 2010 by 8%. It is a reasonable
improvement in ACE Elevators. That might be due to their rapid customer after sales service,
usage of latest technology and opportunities such as increase in globalization, expansion of
businesses, newer life styles. That figure has continuous to the year 2011 as well. There is a 2%
decrease in the year 2012 sales units but that has increased to 11% in the mid of year 2013.

44

Table 07
In total the revenue gain from Maintenance only in both Sri Lanka and Maldives of ACE
elevators seems to be relatively high than competitors. In 2012 grabbing more than 40% of the
entire market ACE elevators has shown their high potential of their services. From 2009 to 2012
ACE has been able to keep up the market share at a stable rate with slight improvements which
testify the competitive ability possess by ACE.
Table 08
Competitive pricing strategy of ACE elevators is one of the most supportive factors in gaining
competitive advantage over the competitors. This particular table depicts the main comparison of
prices between ACE and the most powerful brand competitor (Mitsubishi). Over the 4
consecutive years ACE has been able to maintain a significant gap with the competitors prices
where in 2012 the price difference has grown up to 36% which is exceptional. The price
advantage gain by ACE elevators is in fact visible in the table which again reflects the low cost
of production, installation and commissioning enjoyed by ACE elevators.

Table 09
Through the gathered information using the questionnaire the researchers have been able to
conclude that current customers are extremely contented with ACE elevators except for few. The
given questionnaire deals the employee feelings which helps to assess the possibility of the
continuation of the prevailing competitive advantage into future. However, most importantly
67% of the employees strongly agree that providing performance related incentives would
enhance the capacity of them to work, place which is positive points captured by the researchers
in order to develop strategies to improve competitive advantage. And more than 60% of
employees would recommend ACE elevators as a better working which would attract high
caliber applicants.

45

8.0
RECOMONDATION.

46

 Making Social contacts with the Competitors.

As an adopter of penetration pricing ACE elevators would not be able to exist in the business for
a long period if the competitors also to apply the process of price reductions, it would cause a
price war in the market. Rather than that ACE elevators can come to an agreement with other
potential competitors to maintain a selective price range with in the market creating the entire
market an Oligopoly.
Developing strategic marketing tools to increase ACE products sales.
Increasing the availability of sales binders (Standard equipment binders) for KOYO products,
increasing the availability of adjustment manuals for GEN2 and for all elevator models,
increasing the availability of technical auditors to support in order to secure projects in Sri Lanka
and Maldives and availability of modernization packages for standard product ranges would
increase their competitive advantage.
Conducting trade shows.
ACE elevators can carry out trade shows in emerging locations with the assistance of the foreign
partner KOYO and grab more industrial clients into business. Therefore ACE needs to be more
precise in differentiating their products, processes from the rest in the industry in order to gain
more competitive advantage.
Employee training and development.
Most of the employees at ACE Elevators have stated in the questioner that they need more
training in order to enhance their abilities. Rather than getting specialists from China to consult
the activities, it will be more supportive to the company if they can conduct an employee
performance evaluation and find out the employees who need proper training and send them to
China for training sessions to master their skills.

47

 Establishment of knowledge sharing system among the employees.

Establishment of a regular model of inter-firm interactions, that permits the transfer,
recombination, or establishment of a specialized knowledge. The researchers argue that
developing greater inter-firm knowledge-sharing customs through alliance partners will be the
most significant source of new ideas and information that result in performance boosting
technology and innovations.
o This particular process can be facilitated by ensuring the optimistic side of
employee-specific absorptive capacity and evading its negative aspect such as
using incentives to promote transparency and discourage free riding.

Establishment of an automated oxygen discharging system inside elevator cabins.

If lift lock in between two floors people cant stay for a long time inside the lift because there are
limited air to breath, to overcome that problem we can recommend, that the company can fix
oxygen tanks and make a system where after the lift locked oxygen tanks automatically turn on
and give fresh air to people.
Establishment of a automated signal generator
Whenever there had been a technical error within the elevator panel or escalator in a particular
site/ Building ACE elevators can infix a system which indicates instant signaling to the service
provider instead of a manual process, where the client call the company and accuse the company.
This automated process will be a efficient way of customer complaint handling and would
strengthen the customer supplier relationship.
Establishment of branches in various other locations.
Due to the higher number of sites, buildings and various other upcoming projects being
implemented due to Mahinda Chinthana Concept, it would be much more beneficial for ACE
to establish agents or technical assistants in various other locations including Hambantota,
48

Jaffna, Galle etc in order to improve the efficiency of the delivery service and technical
assistance.
Establishment of a new bell ringing system, to ensure safety.
ACE Elevators has few issues with regard to security of elevator cabins in operation. They do not
use proper safety tool kits for installation. We can recommend a special bell ringing system in the
first try out, if the lifts and elevators have certain problems. That ensures the safeness.

49

9.0 LIMITATION.

50

 When taking customer feedback using questionnaires it is difficult to agree with 100%
accuracy of information. Because based on the situation they just fill the questionnaire
without proper attention. Some customers may misunderstand questions and provide
inaccurate answers.
Companies do not provide all their information to external parties because they have
confidential systems, processes which help to increase competitive advantage. Therefore
the reliability of information is less.
Since the company is competing with an internal competitor, OTIS Elevators and the two
businesses are run by two separate administrations, ACE Elevators management were
unwilling to give some information because we also had an appointment to meet the
Operation Manager of OTIS Elevators to get some information about their business in
order to compare and contrast between the two companies.
Out of 30 questioners provided to the industrial consumers there were only 27 replies
since some of ACE Elevators industrial consumers were reluctant to give their feedback
and in the labor questioner also there were few employees who did not provide their
feedback and we had to analyze and research about the company only through the
received questioners.
We were unable to meet the Finance Manager of ACE Elevators because the day we
visited the company there was an internal audit and the finance manager was reluctant to
provide information due to busy schedules.

51

10.0 CONCLUSION

52

Research examined how ACE Elevators has renewed customer confidence and made remarkable
progress throughout the life span of their business. This research challenged and examined the
context in which people and technology is valued within the scope of their business. Under
theoretical perspective, competitive advantage, SWOT, value chain and Porters Five Force have
been analyzed in order find out the factors which are affecting ACE Elevators both intrinsically
and extrinsically. Questioner provided to the industrial consumers showed that they are highly
satisfied with ACE high quality products and it indicates that ACE Elevators has stable client
base. Product quality, communication, customer focus and after sales services done by the ACE
Elevators has been rated highly by its industrial consumers although they are having certain
issues regarding their delivery and 92% of their consumers are not satisfied with their delivering
process and their delivery is an area of improvement for ACE Elevators. In order to renew
consumer confidence and to make remarkable progress, ACE Elevators has used their core
competencies and was successful in facing the competition. Through their low prices mainly due
to economies of scale, and being consumer focus and by providing superior after sales services
the company has been able to outperform the competition successfully.
Research shows the drastic competition faces by ACE Elevators, their internal and external
competitors and hidden technical and human capital issues faced by the company. There are
certain thresholds and core competencies that ACE Elevators could have used to gain and to
excel their competitive advantage for another step forward. Currently the company does not
initiate any marketing and advertising campaigns to make awareness within the existing market
which could have help them to gain more market share and through employee questioner, it has
been emphasized by most employees that there is requirement for more training and
development in order to improve their efficiency and effectiveness.
By analyzing the company background, operations and current market trend we can come up
with several recommendations which will smooth the future growth potential of ACE Elevators.

53

11.0 ANNEXURES .

54

11.1 Bibliography

Aitken Spence. (2010). [online]. Last accessed 05th August 2013 at

http://www.aitkenspence.com/about_us/hotels_logistics_power_sri_lanka.asp
Competitive advantage. (2013). [online]. Last accessed 20th August 2013 at

http://en.wikipedia.org/wiki/Competitive_advantage
Competitive advantage researches. (2010). [online]. Last accessed 22nd August 2013 at

http://www.competitiveadvantageresearch.com/
Company Profile. (2010). [online]. Last accessed 01 September 2013 at

http://www.aitkenspence.com/about_us/hotels_logistics_power_sri_lanka.asp
History of elevators. (2007). [online]. Last accessed 10th August 2013 at

http://www.ideafinder.com/history/inventions/elevator.htm
History of elevators. (2013). [online]. Last accessed 11th August 2013 at
http://www.columbiaelevator.com/main/elevator-history/

Mitsubishi elevators. (2013). [online]. Last accessed 13th August 2013 at

http://www.mitsubishielectric.com/elevator/
Otis elevators. (2013). [online]. Last accessed 10th September 2013 at
http://www.otisworldwide.com/

11.2 Questionnaires

55

This Questionnaire is being produced in order to collect information about the employee
attitudes and satisfaction towards the company policies and operations.
1.
Strongly
Agree

Tend to
Agree

Neither
agree nor
disagree

Tend to
disagree

Strongly
disagree

Proud when I tell others I am part of

this organization
Would recommend ACE elevators as
a better working place.
Think that providing incentives
would increase employee
performances
ACE provides room for creative
excellences in employees
ACE has superior technology to
outperform the competition

2. Do you think bringing in engineers from China for local installation of elevators would
enhance the productivity and effectiveness of work?
YES
NO

IF,

0%- 20%

21%-40%

41%-60%

61%-80%

81%-100%

3. Do you prefer if ACE establish branches out of Colombo?

YES
NO

4. Where would you work if it wasnt for ACE and why?

5. I wish if ACE had

56

Appendix 01
Market Share of ACE Elevators

2009

2010

4%
ACE Elevators

12%
Compititors

96%

2011

12%
ACE Elevators
Competitiors

88%

ACE Elevators

Competitor

88%

2012

10%
ACE Elevators

Competitors

90%

57

2013

11%

ACE Elevators

Competitors

89%

Appendix 02

RGTS ope sni dec airfin ctl hi f y ht i de de rinffa est r iec nh ct o icmoa mpl eap tnei dt eo hn uc fmiae cs en so cw a np ei tda lb iys Au ce s E l e v a t o r s i n
oOfba cy hj eAi sc tvebi vnyEeglAs cv oea mtEo plres v tai t ov re s .a d v a n t a g e .
58

Appendix 03

Panoramic Elevators

Panoramic Elevator is a special design of passenger

elevators. Panoramic elevators are elevators with any
kind of transparent walls offering views of the
surrounding area from inside the cabins. Views from
panoramic elevators can be inside or outside the
building, or both.

Passenger Elevator

A passenger elevator is designed to move

people between a building's floors. Passenger
elevators capacity is related to the available floor
space. Generally passenger elevators are available
in capacities from 450 kg to 2,700 kg. Generally
passenger elevators in buildings eight floors or less
is hydraulic or electric, which can reach speeds up
to 200 feet per minute (1.0 m/s) hydraulic and up to
500 feet per minute (150 m/min) electric. In
buildings up to ten floors, electric and gearless
elevators are likely to have speeds up to 500 feet per
minute (2.5 m/s), and above ten floors speeds begin
59

at 500 feet per minute (2.5 m/s) up to 2,000 feet per

minute (10 m/s).

Freight Elevator
A Freight elevator is an elevator designed to carry
goods, rather than passengers. Freight elevators are
generally required to display a written notice in the
car that the use by passengers is prohibited, though
certain freight elevators allow dual use through the
use of an inconspicuous riser. In order for an
elevator to be legal to carry passengers in some
jurisdictions it must have a solid inner door. Freight
elevators are typically larger and capable of
carrying heavier loads than a passenger elevator,
generally from 2,300 to 4,500 kg. Freight elevators
may have manually operated doors, and often have
rugged interior finishes to prevent damage while
loading and unloading. Although hydraulic freight
elevators exist, electric elevators are more energy
efficient

for

the

work

of

freight

lifting.

60

Car Lift
Vehicular elevators are used within
buildings or areas with limited space (in lieu of
ramps), typically to move cars into the parking
garage

or

manufacturer's

storage.

Geared

hydraulic chains (not unlike bicycle chains)

generate lift for the platform and there are no
counterweights.

To

accommodate

building

designs and improve accessibility, the platform

may rotate so that the driver only has to drive
forward. Most vehicle elevators have a weight
capacity of 2 tons.

Escalator
An escalator is

moving

staircase,

conveyor transport device for carrying people

between floors of a building. The device consists of
a motor-driven chain of individual, linked steps that
move up or down on tracks, allowing the step treads
to remain horizontal.
Escalators are used around the world to
move pedestrian traffic in places
where elevators would be impractical. Principal
areas of usage include department, shopping
malls, airports, transit, convention
centers, hotels, arenas, stadiums and public
buildings.
61

Chair Lift

Vehicular elevators are used within buildings or areas

with limited space (in lieu of ramps), typically to
move cars into the parking garage or manufacturer's
storage. Geared hydraulic chains (not unlike bicycle
chains) generate lift for the platform and there are no
counterweights. To accommodate building designs and
improve accessibility, the platform may rotate so that
the driver only has to drive forward. Most vehicle
elevators

have

weight

capacity

of

tons.

Appendix 04
62

Strengths

Weaknesses

1. Latest technology.

1. Internal competition.

2. Stable customer pool.

2. Weak management.

3. Economies of scale

3. Poor safety strategies and unreliable

safety kits.

4. Cost leadership pricing.

4. Lack of product availability.

5. Rapid customer after sales service.

6. Higher rate of training & development
programs.
7. Unique products.
8. Fully qualified lift engineers.
9. Employees are focused & diligent.
+Opportunities

Threats

1. Increasing globalization.
E.g.:- Maldives operations

1. External competition.
E.g.:- Mitsubishi,Xuize,Hitachi

2. Upcoming projects in Sri Lanka.

3. Expansions of businesses.

2. Inflation rate fluctuations.

E.g.:-fluctuation in prices of elevator
materials.

4. Newer life styles.

3. Exchange rate fluctuations.

5. Rapid growth in tourism industry.

4. Skilled labor migration.

6. Increasing demand for apartments.

5. Increase in taxation.
6. Pertaining government rules &
regulations.

63

Appendix 05

Firm Strategy, Structure and rivalry

Factor
Conditions

Demand
Conditions

Related
And
Supporting
Industries

64

Appendix 06

Duty Free importation/ Taxation/ Progress Building Procedure- Notwithstanding the dutyfree importation status, AE Lanka. Shall bear all import taxes and/ or duties including all related
costs and expenses incurred if AE Lanka fails to comply with the duty free importation
procedures imposed by the Sri Lanka Authorities. Any loss time due to failure to comply with the
duty free importation procedure will be the sole responsibility of AE Lanka.
(Abstractions (page9) Sub contract agreement for supply Installation, Testing, Commissioning
and maintenance of 5 no. KOYO elevators for the proposed construction of business centre for
ICC development holding (pvt.) Ltd. At 30, R.A De Mel Mawatha, Colombo 03)

Questionnaires

65

Appendix 08
Blue wtr

66

Appendix 09

DELIVERY &INSTALLATION PROGRAMME FOR HARBOR PUBLIC SERVICE

BUILDING ELEVATOR
Weeks
1 2 3 4 5 6 7 8 9 1 1 1 1 1 1
0 1 2 3 4 5
/C Opening
Production Period
Shipping Period
Clearing & Delivery
Installation Testing &
Commissioning

1
6

67

68

69

70