Verklar Austria

Verklar is the leading maker of roof windows, based in Europe. In its Austrian subsidiary, it has historically dominated the Austrian market through its country-based subsidiary, with about 85 percent market share. However, at the time of the case, its market share has dropped to about 75 percent, and many of its dealers have either dropped the line entirely or are buying not from the company, but from the few remaining large dealers who still buy directly from Verklar. This has prompted Mr. Nickel, the president of the subsidiary, to devise a new way to run the distribution channel in the country in order to improve performance, called the Quota System. The case calls on the reader to examine the sources of market share decline and whether the proposed Quota System solves the channel's problems.