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Group 8

Dominion Motors and Controls Limited

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The Dream Team

n 1910087- Manas Rastogi- The Executor

n 1910078- Hilal Mohammed- The Go-getter

n 1910075- Dakshita- The Optimist

n 1910073- Priyadarshan- The level headed realist

n 1910069- Anuj Suneja – The Dreamer

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Company Overview (Timeline)
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Company Snapshot

Products Offered:
Competition:
Control Panels and
Boards Canadian Motor
Manufacturers
Fractional Horsepower (Spartan and
Motors Universal)
1-200 hp motors
Foreign Competitors
250-2000 hp motors

Marketing:
Sales:
Sales People
80% to Large
Industries and OEMs Advertising and Trade
Journal
20% to Distributors
Catalogs

Total Sales: US$323m

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Alternative ONE

n Reducing the price of 10-hp motor to the level 7.5

hp unit

n Short Term Solution

n Help DMC buy time till they get to a long term

solution

n Employees didn’t feel the need of cutting down

prices till market became aware
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Alternative ONE

n It will send out a wrong signal

n Itis not recommended to discount your own

products

n Buying decisions would become complex

n Encourages Over motoring
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Alternative TWO
n Leveling the torque level of 7.5hp motor to Spartan

n 2 ways of Achieving this:

n Modifying the internal motor component
n Keeping the same frame size
n Lead to temperature rise (Countered by Insulation)
n Cost of US$790
n Using a larger motor frame
n Less Resistance from Customers
n Doesn’t meet NEMA mounting dimensions
n Cost of US$860

n No additional investment required

n 3 months required to begin shipment

n Would Invite a torque war

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Alternative TWO

n Violations NEMA standards on Temperature/

Mounting Dimensions

n Consumers might react negatively

n Manufacturing costs inflate

n Confused customers may have detrimental impact

n3 months required to begin shipment

n Would Invite a torque war

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Alternative Three
n Design a new specific motor

n Unquestioned competitive superiority

n Cost of US$665

n Estimated Selling Price of of US$1045

n Investment of US$75000

n Offering the market exactly what it wanted

n Could be the first manufacturer to offer a definite purpose motor

and acquire a 60% market share

n Small market size

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Alternative Three
n First Mover Advantage

n Blue Ocean Strategy

n Minimal expense for Plant and Equipment

n 60% market share

n Profit of US$380 per unit sold

n Minimal Sales Impact

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Alternative Four
n Attempt to persuade Bridges and Hamilton

n Believed that results were not accurate

n Another set of conclusions could be drawn

n“ Engineers Love big margins whether they use

them or not”

DMC Executives
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Alternative Four

n As some employees have great relations with the

senior management of Hamilton, revaluation of
results was possible

n We can hire an independent agency to counter

Bridges’ findings

n Assumed that starting torque was the most

important feature
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Alternate Alternative
n We can think about entering the US market

n Try to reduce price by Technological Advancements

n Launch a product after the survey has been successfully

completed

n Launch new technologically advanced products for

the long run
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Comparative Analysis

Alternative 1 Alternative 2 Alternative 3

1) Drop of ~25%
Profit Margin Drop of ~58% Drop of ~31%
2) Drop of ~42%

Profit USD292.8 USD359.51 USD330

Change in
1) USD126.49
Manufacturing --- USD153.47
2) USD203.49
Cost

Additional
--- Minimal USD75000
Investment
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Recommendations
n We recommend the adoption of alternative three
as it:
n Offers the first mover advantage
n Has a minimal impact on sales
n Offers customized product for customers
n Can take care of over motoring issue

n Don’t
reduce price of 10hp motor as it will send
wrong signals to the customer
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THAT’S ALL
FOLKS.