Solutions and further recommendations:
After a detailed analysis of the case, we would like to present a three step plan of action that we believe is in the best interest of Dominion Motors. According to us, a consolidated strategy from three out of four of the strategies given, provides the right direction for Dominion Motors to follow. The steps we suggest are as follows:-
price reduction, but only marginal, of the 10hp motors
attempting to match the initial torque capacity of the Spartan motor
creating a product that the customer wants
Price reduction, but only marginal, of the 10hp motors
As given in the case, the reports suggest that there will be a shift in the demand for motors very soon. Customers will move towards the 7.5hp motors from the 10hp motors to comply with NEMA standards as well as utilize power optimally. Hence Dominion motors should decrease the prices of the 10hp motors marginally to induce customers to purchase at a lower price. The case also suggests that the reports will take time to be published, and as a result most people will not know about it soon. This will be an incentive if used right, to sell off the remaining inventory of the 10hp motors as soon as possible. Although, reducing it far too much to the …show more content…
Since it is now known, with reasonable credibility that the Spartan motor is going to be the one to beat, mainly for its torque capacity, this should be next on the agenda. Dominion Motors should invest some money in modelling their 7.5hp motors to be able to provide a similar capacity. Also, they should follow the size route rather than the internal machinery route. This is because although both can be questioned by NEMA standards, the internal machinery manner still has more potential risk and might not be as appealing to the customer as its larger size constraint alternative. This alternative will provide short term
After a detailed analysis of the case, we would like to present a three step plan of action that we believe is in the best interest of Dominion Motors. According to us, a consolidated strategy from three out of four of the strategies given, provides the right direction for Dominion Motors to follow. The steps we suggest are as follows:-
price reduction, but only marginal, of the 10hp motors
attempting to match the initial torque capacity of the Spartan motor
creating a product that the customer wants
Price reduction, but only marginal, of the 10hp motors
As given in the case, the reports suggest that there will be a shift in the demand for motors very soon. Customers will move towards the 7.5hp motors from the 10hp motors to comply with NEMA standards as well as utilize power optimally. Hence Dominion motors should decrease the prices of the 10hp motors marginally to induce customers to purchase at a lower price. The case also suggests that the reports will take time to be published, and as a result most people will not know about it soon. This will be an incentive if used right, to sell off the remaining inventory of the 10hp motors as soon as possible. Although, reducing it far too much to the …show more content…
Since it is now known, with reasonable credibility that the Spartan motor is going to be the one to beat, mainly for its torque capacity, this should be next on the agenda. Dominion Motors should invest some money in modelling their 7.5hp motors to be able to provide a similar capacity. Also, they should follow the size route rather than the internal machinery route. This is because although both can be questioned by NEMA standards, the internal machinery manner still has more potential risk and might not be as appealing to the customer as its larger size constraint alternative. This alternative will provide short term