OTISLINE

Case Facts

 OTIS Elevator, a subsidiary of United technologies Corporation, Revenue in excess of $2 billion

 Organized into four divisions- North American, Latin American, Pacific and European
Transcontinental
 Into the business of design, manufacture, installation and service of elevators
 Markets three elevator lines Otis Hydraulic, Otis geared, Otis Gearless
 Introduction of automated microprocessor based elevators in 1970s led to increase in market
share
 Very competitive market with other players like Westinghouse, Dover, Montgomery, Schindler
etc
 Second largest division with over 8000 employees in 1985 Until 1978 the computer systems
used for production control and accounting
 Cost reduction program halted all the progress and led to laying off of over 60% programmers.

Problems Faced

 Response Time varied

 Out of service elevators irritated customers
 No centralized Data
 Quality of answering services varied greatly

It uses 02 theories

 Transaction cost theory

 Agency cost theory
 02 way relationship
 Based on them the future of OTISLINE is to be done