Dominion Motors and Controls Case

Submitted ByGroup 4 (Sec. A)

Shiva Kant Tiwari
Rishi Varma
Narendra Patankar
Ajeet Singh
Blessen Mathai

(PGP13054)
(PGP13046)
(PGP13102)
(PGP13067)
(PGP13082)

Recommendation:

Option 1

Immediate, Effective
and short-run
solution

30% price cut needed

over list price

Before choosing any option, communicate with your

prominent clients to know their expectation and their
perception of your product.

In case of a price cut on 10 hp machine, Dominions

position for further negotiations will be weaken.

We can take a safety measure by evolving existing 7.5

hp motor for better torque, it will ensure our existing
position in the market.

Going for a specialized definite-purpose motor only

for oil well pumping market may not be the best
strategy. Given the small size of the Canadian market
and high no. of competitors, the cost of developing
a dedicated product will be very high.

Issues of overmotoring and high

power tariff may
hamper sales

Option 2

Product modification
to get a comparable
or better torque in
category

20% to 30% rise in

product cost, can
trigger a torque war
among producers

NEMA standard
violation can be an
issue, three month
needed to begin
shipment

Option 3

Will give competitive

superiority, first
mover advantage,
market share of 60%

Minor expenditure
needed for plant &
equipment, 4 to 5
months to begin
production

Canadian motor
industry uses general
purpose motors

Option 4

Starting torque was

considered the most
important feature in
a motor

Trade-off between
maximum torque &
price, as even 80
pound-feet of torque
was to be rarely used

Difficult to approach
Bridges or alter his
recommendations