Curled Metal Inc.

By: Sheetal Gwoala Jisun Hong Jacquiline Njiraine Gabriela Silva Betel Solomon

Problem
Deciding the price of the CMI cushioning pads

Pricing Analysis

Alternative Pricing

Assumptions
Such sophisticated product has never been sold in pile
driving industry therefore the price will be based on perceived value

Industry leader, will give us competitive advantage

Projected cost data based on the manufacture of only one

pad size and assumed these numbers would not vary dramatically with a mix of sizes.

Strategy
Product differentiation

The CMI cushion pads eliminate downtime making them a

work-saving tool

The CMI cushion pads contain no hazardous materials

Significant cost savings while using CMI pads

Conventional pads Vs CMI pads

S.W.O.T analysis
Strength

Able to manufacture high performance cushion

pads that will last longer

CMI posses great processing technology

It will help companies to save a significant amount

of time and lower costs Weakness

The ambiguity of pricing and distributing the pads

S.W.O.T analysis(cont.)
Opportunity

Little attention to pads give advantage to CMI cushion pad

no dominant firm has emerged Approval from professor McCormack will create an awareness and
recognition from the pile driving industry
Threats

Hesitation from Pile hammer distributing/renting companies since

the pads enable a constructor to return the equipment faster.

Need industry acceptance for the pads

The VRIO Framework

Valuable? Yes Rare? Yes Costly to Imitate? Yes Exploited by Organization? Yes Competitive Implications Sustained Advantage

Pricing Solutions
Price CMI cushion pad higher than regular cushion pads
because it is a work-saving tool and lasts longer

CMI should use existing equipment to manufacture cushion

pads

Using existing equipment to produce cushion pads brings

higher profit margin

Target contractors who have bigger complex projects and

can purchase the pads in a large scale

Recommendations
Built a brand name for the CMI cushion pad with the focus on a
work saving cushion pad

Use construction-oriented manufacturer representatives to sell

the product to engineering/construction contractors.

Advertise the product in the Oklahoma Contractor magazine Feature the cushion pad in the Piletalk seminar Use Professor McCormack approval to boost the brand name