Post on 31-Dec-2015
description
Curled Metal Inc.By: Sheetal Gwoala
Jisun Hong Jacquiline Njiraine
Gabriela Silva Betel Solomon
Problem
Deciding the price of the CMI cushioning pads
Pricing Analysis
Alternative Pricing
AssumptionsSuch sophisticated product has never been sold in pile
driving industry therefore the price will be based on perceived value
Industry leader, will give us competitive advantage
Projected cost data based on the manufacture of only one pad size and assumed these numbers would not vary dramatically with a mix of sizes.
StrategyProduct differentiation
The CMI cushion pads eliminate downtime making them a work-saving tool
The CMI cushion pads contain no hazardous materials
Significant cost savings while using CMI pads
Conventional pads Vs CMI pads
S.W.O.T analysis Strength
Able to manufacture high performance cushion pads that will last longer
CMI posses great processing technology
It will help companies to save a significant amount of time and lower costs
Weakness
The ambiguity of pricing and distributing the pads
S.W.O.T analysis(cont.)Opportunity
Little attention to pads give advantage to CMI cushion pad
no dominant firm has emerged
Approval from professor McCormack will create an awareness and recognition from the pile driving industry
Threats
Hesitation from Pile hammer distributing/renting companies since the pads enable a constructor to return the equipment faster.
Need industry acceptance for the pads
The VRIO Framework
Valuable? Rare?Costly toImitate?
Exploited byOrganization?
CompetitiveImplications
Yes Yes Yes Yes SustainedAdvantage
Pricing SolutionsPrice CMI cushion pad higher than regular cushion pads
because it is a work-saving tool and lasts longer
CMI should use existing equipment to manufacture cushion pads
Using existing equipment to produce cushion pads brings higher profit margin
Target contractors who have bigger complex projects and can purchase the pads in a large scale
RecommendationsBuilt a brand name for the CMI cushion pad with the focus on a
work saving cushion pad
Use construction-oriented manufacturer representatives to sell the product to engineering/construction contractors.
Advertise the product in the Oklahoma Contractor magazine
Feature the cushion pad in the “Piletalk” seminar
Use Professor McCormack approval to boost the brand name