Competition between two leading companies heats up

Implications: It is known that there are two major comprehensive competitors in the world of processing industries: Global Engineering Alliance (GEA) based in Germany, and Swedish based Alfa Laval. While GEA is stronger, more comprehensive, and rolls out red carpet to its prospect, Alfa Laval uses different leverages to compete successfully.

Analysis: In the world of processing industries, such as food and beverage making (beer, wine, juices, and so on), dairy, pharmaceutical, etc. there are two big players: GEA and Alfa Laval. GEA is very well known for its top quality equipment, comprehensiveness of the technology (one stop shopping approach, starting with initial research for a prospect), Alfa Laval finds its niche among educated customers and takes "slices of pie" by offering most cost affordable equipment. Its recent commitments in India, and purchase of a Finnish cooling equipment maker show that this company successfully competes in emerging markets such as Russia, China and India. Its recent aggressive sales provided company with needed cash and much needed increased industrial capacities for the above said markets. Apparently, it was a win-win situation for both Carrier (division of United Technologies Corporation) and Alfa Laval.