Abb Electric Case Essay

1842 Words Apr 10th, 2014 8 Pages
MARKETING ENGINEERING FOR EXCEL



CASE



VERSION 2.0.3

Case

ABB Electric Segmentation
By Gary L. Lilien & Arvind Rangaswamy
1. Before beginning any case, students should familiarize themselves with the model being used. Marketing Engineering for Excel comes with tutorials that demonstrate the capability of each model. The tutorial can be found under each model within the ME►XL menu after starting Excel. These tutorials are designed to work with our OfficeStar examples which are located in the My Marketing Engineering directory, usually installed in My Documents during software installation. The data required for this case is located in the My Marketing Engineering directory (usually located within My Documents): ABB
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ABB Electric faced several other issues at this time. The salesforce relied on traditional methods of selling and was not well focused. The salespeople acted independently and did whatever they thought they needed to do to close sales quickly. At the same time, the board of directors was pushing for standardization of products and cost reduction. The board felt that to compete
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effectively against the larger companies and to improve its current position of marginal profitability, ABB Electric would need a cost advantage. The directors thought this particularly important because all the major competitors made good-quality products that were similar to ABB Electric’s. ABB Electric would have to find some way to differentiate itself in the marketplace. Virtually all of ABB Electric’s sales were to one type of customer, the investorowned electrical utilities. Because these utilities already had substantial inventories, sales to this group were projected to fall as much as 80 percent per year for the next two or three years. ABB’s salesforce focused most of its effort on this

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