Case Study: Dominion Motors & Controls, Ltd.

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Dominion Motors & Controls, Ltd.

A large supplier of motors and control equipment in Canadian oil Market, Dominion offered wide range of products for oil producers, Dominion products consists of motors ranging from small fractional horse power (hp) unites to large horse power motors. Company also produced motor control and panel-board unites which would automatically and protect a motor. Company boasts to control little over 50% of the total market share at that time.
Dominion Major Customers Includes: OEM Equipment Manufacturers, Oil companies, paper Mills and Mining Concerns etc.
Dominion Competition Include: Although it is a very disintegrate Industry with many small players there were only 3 major players in this industry:
1) Spartan
…show more content…
3) A Strong relationship with its customer.
4) Dominion Products meets NEMA standards which set standards for the manufacturer for the safe and effective use of electrical products.

Selling Period: Sales to this market were very much seasonal as 80 % of the sales made between April and September hence this makes forecasting and product development easier.
Hamilton Test Put Dominion in Dilemma:
Hamilton largest oil company in Canada and Largest Dominion customer conducted a field test to freeze oil motor specification for following reasons.
1) To find out the horsepower required to lift the crude from the ground.
2) To find out maximum torque required to start the pumping at low winter temperatures. Hamilton completed test by early 1985, being a strong relationship of DMC sales team with Bridge, they were made aware of the test result in March although the report was planned to tabled before Hamilton’s Executives in May.
As per Bridge Recommendation
1) Fluid lifting requirements hp : 3 to 5 hp motors
2) Starting Torque : 70 Pounds feet would energize the pumping
…show more content…
DMC came at third place with 89 torque which could prove quite negative to its market share because Hamilton is the largest active oil company in Canada, and Bridges is extremely influential in decision making in Hamilton’s buying. Hamilton test is going to affect entire oil industry.
Moreover DMC can’t afford to lose Hamilton as being one of the dominating player in Canadian oil Market Therefore, DMC executives needed to respond to the result of the test and come up with a solution in order for the company to stay in the oil well pumping market.
Company also needed to make sure any alteration in the design or specification should meet NEMA minimum standard as NEMA started to monitor Overmotoring and similarly penalizing for the same. Possible solution to Dominion Dilemma Suggested by DMC Executive:
Four courses of the action were developed by the Executives:
1) Reduce the price of DMC 10-HP motor to that of the 7 ½ hp

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