Case Study : The Electric Motor Company Case Essay

729 Words Sep 15th, 2015 3 Pages
In the Dominion Motor Company case there was four alternatives the executive team came up with. We have decided that alternative four is the only way to manufacture precisely what the market needs. When choosing this alternative DMC will incur the energy costs of a 5-hp motor and will be able to deliver the same level of performance as a 10-hp. The price point for this alternative will fall below the 7.5-hp motor but the attractiveness of the total offering allows this motor to be priced above the 7.5-hp motor. This engine 's performance will exceed the NEMA specifications. The engineers at DMC are confident that this engine will give DMC a long term competitive advantage over its competition, this is because you can sell the motor at a greater cost than a 7.5-hp motor. This is a large pro to this alternative because at the time they had no competitive advantage over the rest of the market. The higher profit margin will help drive value to DMC’s business in a number of ways. DMC will be able to expand its advertising strategy to channels other than print catalogues and trade journals while improving customer acquisition from advertising.
The annual market size for new wells entering production is approximately at least 1000 wells per year for the next five years. In 1985 there were approximately 5500 oils wells in production, after 1984 there should be 1000 new oil wells added each year, although this estimate was considered relatively low by some experts. Oil rig…

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