Competitor Landscape: Hydraulics Companies

Part
01
of six
Part
01

Hydraulics Competitor Landscape: Danfoss, Pt. 1

We have updated column D, rows 3-15 of the attached project spreadsheet with information on the company Danfoss. The type of hydraulic products manufactured by Danfoss are steering components, motors, pumps, and valves. Our research revealed that Danfoss sells all its products, including its hydraulic products, in over 100 countries globally. We have provided key points from our research below.

KEY FINDINGS

  • The official website for the company Danfoss does not accommodate product purchase. However, the company has launched an e-commerce website where customers can view detailed information on products, compare products, and track their orders. The e-commerce website is only open to certain countries at the moment. Plans for opening up the e-commerce website to other countries are in motion.
  • Danfoss partners with distributors, however, these distributors are not limited to selling Danfoss products alone.
  • Danfoss products are available on third party websites such as Aliexpress and Amazon.

RESEARCH STRATEGY

Your research team commenced our research on the company's website, starting with identifying the types of hydraulic products sold by the company. We moved on to the company's latest annual report for the year 2018 to identify information on the regions where their hydraulic products are sold. Regarding the company's product availability on third-party websites, we made use of popular E-commerce websites such as Aliexpress (the retail e-commerce store for the Alibaba group) and Amazon. We have provided all the requested information in the attached project spreadsheet.


Part
02
of six
Part
02

Hydraulics Competitor Landscape: Hengli, Pt. 1

Hengli manufactures hydraulic cylinder, pumps, valves, motors, and systems products. They sell their products in Asia, North America, Europe, and the Middle East. We have updated column E, rows 3-15 of the attached spreadsheet with information on Hengli's product sales.

SUMMARY OF FINDINGS

  • Hengli's main product line consists of cylinder, pumps, valves, motors, and systems.
  • Hengli sells its products in North America, Europe, and Asia.
  • The official website of the company does not accommodate online product purchase. However, it does present full product's information.
  • Hengli has its own distribution network with over 200 marketing personnel.
  • The company provides direct contact information of the sales representatives in China, North America, Europe, and Japan.
  • Some Hengli products are available on third-party platforms such as Alibaba.

Research Strategy:

To provide insight into what the hydraulic product sales process look like at Hengli, we began our research with a thorough search on the company’s website. We found relevant information about the company such as their declared markets of operation, products, and customer relations. We also searched media outlets and third-party websites in search of further information not mentioned directly on the company's website.
Part
03
of six
Part
03

Hydraulics Competitor Landscape: DYPower, Pt. 1

DYPower sells excavators, aerial lifts, fork lifts, wheel loaders & backhoe loaders. The company supplies to the United States, but does not supply to Latin America. Below we have provided details of our findings which can also be found in column F of the attached spreadsheet.

DYPOWER OVERVIEW

  • DYPower supplies hydraulic cylinders for excavators, fork lifts, aerial lifts, wheel loaders & backhoe loaders
  • The company sells its products across the world with major markets in North America, Europe, India, China, Thailand, Indonesia, Korea, and Japan.
  • DYPower does not have an e-commerce platform or sell products via the company website.
  • The company's components cannot be purchased from any leading retail chain such as Amazon because they do not feature them as customers on their website and there are no DY Power stores on Amazon, eBay or Alibaba.
  • DYPower has not disclosed the prices for its hydraulic cylinders, which it claims that it supplies to the world's largest construction equipment manufacturers and select companies.
  • The company is also investing in state-of-the-art technologies and research and development to increase its competitiveness and emerge as the world’s number one supplier of hydraulic cylinders based on quality and market share.

Research Strategy:

In order to determine the sales process at DYPower, we began by scouring the company website which provided most of the requested data. An analysis of the website also helped to establish whether the company has an e-commerce platform. It turned out that DY Power lacks an online store, evidenced by the absence of a store or e-commerce link or page on their site. Additional searches on leading e-commerce sites such as Amazon, eBay, or Alibaba did not reveal any DYPower hydraulic cylinders listed for sale. In this regard, we concluded that DYPower products are not listed on the world’s leading e-commerce platforms, specifically those operating in Asia.
On the company’s customer’s page, DYPower shows the companies it supplies to broken down by region. There was no e-commerce company included in the lists, which can potentially indicate that they do not sell to third party e-commerce sites as they could have listed them under their customer’s section page. Overall, we suspect that since the company claims to be supplying to select companies which it has indicated on its customers’ page, then it is probable that it does not sell its products via third-party agents or e-commerce platforms.

Part
04
of six
Part
04

Hydraulics Competitor Landscape: Danfoss, Pt. 2

Danfoss made 10 acquisitions in the last 3 years, and through the acquisition of Artemis Intelligent Power in 2018, the company manufactures its own hydraulic products. Our findings have been presented in the attached spreadsheet row 16-22, "Danfoss" column and a brief overview can be found below.

FINDINGS

Acquisitions

  • In 2018, Danfoss acquired Ikusi, AXCO-Motors, AAIM, OE3i, Artemis Intelligent Power Ltd and Hydraulik Nord Fluidtechnik.
  • In 2017, the company acquired Prosa, Visedo and Kavlico thin-film technology
  • In 2016, the company acquired Sondex Holding A/S and Propulsys, Inc

Business Strategy

Part
05
of six
Part
05

Hydraulics Competitor Landscape: Hengli, Pt. 2

FINDINGS

The R&D spending of Hengli as a percent of sales is 57.8%. The business strategy used by Hengli involves using technical innovations to attract more industries, recruitment of excellent employees and physical expansion of the company globally. The details of our findings have been inputted in column E, rows 16-22 of the attached spreadsheet.

OVERVIEW OF FINDINGS

RESEARCH STRATEGY

We started the research by looking at the company's website to know about the product offerings. Through this, we were able to get their hydraulics products offerings. We then expanded the research by looking for the annual report of the company to get information related to the company's financial information. We, however, got a company profile document prepared by Hengli and this provided information on the R&D spending but no information was available on the sales. We also searched for the SEC filing of the company but this information was not available. We then expanded our search to industry and company databases which included Crunchbase, Hoovers and Pitchbook. Through this strategy, we were able to get the revenue. We assumed that the revenue represents what the company makes from its sales and then triangulated these figures to determine the R&D spend as a percent of sales.
After this, we searched news articles which included CNN, Forbes and Financial Times and we looked out for articles that discussed about the company. We also looked for possible interviews of the company's C-level officers since this might give insight into what the company is doing with regard to growth strategy, investments, and initiatives. However, we did not find any interview of the C-level officers and had to leverage on the news publications related to the company only. Through this strategy, we were able to get information on the acquisitions and expansion plans of the company.
The company profile document on Hengli also contained a list of its customers and we selected the three with the highest revenue. We did this by first looking out for their annual reports. When this was not available, our next strategy was to check company databases (which included Crunchbase, Hoovers and Craft) where we got their respective revenue and then selected the top 3 with the highest revenue.

The calculation done is below:

R&D= $350,000,000
Revenue= $605,390,000

Therefore, R&D as a percent of sales = $350,000,000/$605,390,000 x 100 = 57.8%
Part
06
of six
Part
06

Hydraulics Competitor Landscape: DYPower, Pt. 2

DY Power Corp. manufactures its own hydraulics products and many of its key customers are "top 10 construction equipment manufacturers." All the available information we found about DY Power Corp. is included in the attached spreadsheet.

Findings

1. Hydraulic Product Manufacturing, R&D, & Customers

  • DY Power Corp. manufactures its own hydraulics products.
  • The amount of money the company spends on R&D, as a percent of its net sales, was not publicly available. We did, however, find the company's statement regarding its R&D efforts, which states: "We are aggressively investing in R&D to maintain a high level of customer satisfaction, with the goal of becoming the world's #1 Hydraulic Cylinder supplier in terms of quality and market share."
  • With regard to the company's top hydraulics customers, the company's website states that its hydraulic cylinders are supplied "to each of the world's Top 10 construction equipment manufacturers, and other world-class companies." According to Construction Review Online, the "top 10 . . . construction equipment manufacturers" worldwide are Caterpillar, Komatsu, Volvo Construction Equipment, Hitachi Construction Equipment, Liebherr, Sany, Zoomlion, Terex, Doosan Infracore, and John Deere. However, DY's list of customers by region provided on its website does not include Komatsu nor Liebherr, but the other top 10 companies are listed.
  • According to the list of customers provided on DY's website, its customers in North America are Bobcat, Genie, Deere-Hitachi, and JLG. The company's customers in Korea are Doosan, Volvo, and Hyundai. The company's customers in China are Caterpillar, Doosan, Hitachi, JCB, Terex, John Deere, Kobelco, Volvo, and Takeuchi.
  • The company's customers in India are Hyundai, Kobelco, JCB, and Tata Hitachi. The company's customers in Europe are Caterpillar, Hitachi, Volvo, JCB, Terex, and Hidromek. Lastly, the company's customer in Southeast Asia is Kobelco.

2. Business Strategy

  • With regard to the company's business strategy, from a corporate-structural standpoint "[t]he company adopted a holding-company structure through company split and changed its corporate name to DY Corporation" in December 2014. From a corporate-philosophy standpoint, the company's business strategy is premised on three components: (1) Mission; (2) Vision; and (3) Core Values.
  • With respect to mission, the company states: "We contribute to the happiness of our community and the progress of society by creating exceptional value through the right-way management."
  • With respect to vision, the company stated that it strives to be a "perennial great workplace." The company's core values are principled behavior, robust business, and a workforce that's highly-motivated.
  • With respect to principled behavior, the company states: (1) "We make all regulations fairly and implement them transparently;" (2) "We choose the right way over the easy way and behave ourselves honorably;" and (3) "We maintain a healthy and highly productive work environment."
  • With respect to having a highly motivated workforce, the company states: (1) "We act proactively as the owner of our own works;" (2) "We treat each other with respect, believe in good faith and keep an open mind when communicating with one another;" and (3) "We incessantly strive to improve our character and competence, and learn from our mistakes."
  • Lastly, with respect to maintaining a robust business, the company states: (1) "We think and act in our customer's point of view, and strive for their success;" (2) "We work selflessly as a team to achieve our common objective;" and (3) "We always seek for a better way to do things without being content with the status quo."

Your research team applied the following strategy:

We were able to find some of the requested data points, though some others were not publicly available. The data points that we were unable to identify are (1) the amount of money the company spends on R&D as a percent of its sales, (2) whether its products are connected to allow for monitoring, (3) whether the company has made/announced any recent incentives/initiatives, and (4) whether the company has made any recent acquisitions. We looked for information about each of those data points by using three different strategies. First, we looked directly on DY Power's website for such information. With respect to R&D spending, the financial statements available on its website don't state such value, but instead just states its net sales. With respect to connected products, we read about each of its products on its website, but that information wasn't stated.

With respect to acquisitions and incentives/initiatives, there was no news section on the company's website, so that information wasn't included there. As a second strategy, we looked up the company using company database sites such as Reuters and others. We did that because those sites include overview information about companies, as well as news and financial data. While we found DY Power Corp. listed in those database sites, the aforementioned data points weren't included, as the information provided was about other financials and basic company overview information. As a third strategy, we looked for any published articles about the company specifically regarding each of the aforementioned data points we were searching for. However, we couldn't find any articles published about the company other than ones featuring company overview profiles, such as this Forbes listing. Accordingly, we provided all the related information we could find, though information about a few of them wasn't publicly available whatsoever.

Sources
Sources