The valves that the company makes are produced using four different machine components and are produced and shipped in large lots. Scott feels as if the competitors are now able to match their quality but have yet to try and gain market share by cutting the prices of their valves. Additionally, the pumps are made using five components from machines and then assembled into the final product. These are then shipping to the industrial companies that have purchased these pumps. One issue is that competitors keep lowering their prices on their own pumps, so Wilkerson has to match these and lower their prices as well. This makes it hard for Wilkerson to keep their gross margin profits up since their prices continue to lower. Last, the flow controllers need more labor and machining components than either the pumps or the valves. Additionally, there are many other alternatives that are used in the industry so more product runs are needed for these versus the pumps or valves. Also, more shipments are needed for these since there are shipped to industrial companies. The flow controllers were doing better than the valves or the pumps since Wilkerson was able to raise their
1. What is the competitive situation faced by Wilkerson? The critical product in term of market competition is the pumps of Wilkerson Company. The pumps are Wilkersons major product line with a production of about 12,500 units per month. Pumps currently have the lowest gross margin among all products, because competitors had been reducing prices on pumps and Wilkerson adopted its prices in order to remain competitive and to maintain the volume. 2. Given some apparent problems with Wilkersons cost system, should executives abandon overhead assignment to products entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense? Our conclusion is, that they should not adopt
To ensure that Glenn can build a respectable reputation as a car detailing business, Glenn must be able to grab a segment of the market in his area where a few competitors already exist. Glenn can penetrate the market by employing different marketing and promotional strategies to ensure that he’ll see success and profits with his limited resources. Glenn’s main objective for his business strategy is to provide cleaning and maintenance to both the interior and exterior of vehicles to preserve their condition by using quality name brand products and precise, hand-done work. Glenn has already identified the different segments of car owners: owners of older cars that are in poor condition, but served the purpose of transportation; owners of newer, mid-priced cars; and owners of expensive cars costing more than $35,000.
The first opportunity that Canada’s Cleaners Inc. acquires is the fact that all of their competitors press shirts on old equipment. This is an opportunity because it gives CCI a quality advantage and distinguishes them from their competition. The second opportunity that Canada’s Cleaners Inc. acquires is the contracting dry-cleaning industry market. This is an opportunity because CCI has approximately 20 per cent less competition than they would have 20 years earlier. The third opportunity that Canada’s Cleaners Inc. acquires
Wisher primarily distributes its mowers in farm supply stores and hardware stores located outside metropolitan areas. 75% of the company’s sales come from rural areas, while 30% of sales regenerated from wholesalers and 20% from dealer sales. Much of the company’s brand awareness comes from co-op advertising through all sources of media. Swisher’s target markets are the Midwest and Southeast, where the Ride King and their private label Big Mow are primarily distributed. The company focuses sales on consumers with over an acre of land, as well as farmers with several hundred acres. The Ride King has a distinct advantage over its competitors, since it is the only mower that has one front wheel that can turn the mower 360 degrees without shifting. As the economy improves, Swisher can take advantage of increasing sales by selling more of its mowers in large retailers. Its retail price would make it the cheapest product on the market. As other brands have distributed their mowers under private labels to the growing mass merchandisers, Swisher’s sales could be quickly depleted. In order for Swisher to fully compete, it must be able to gain market share on other private label brands. Many of its competitors have an advantage, because they use front engine mowers, while the Ride King does not. With other manufacturers selling their mowers in the same locations as Swisher, Swisher must create more brand awareness within urban areas by
The company is weakened mainly by its lack of technological advancement in every area of production. For example, if the company chose to modify their equipment to produce their “Atherley” model as well, it would be able to lower production costs of this model, in turn increasing the profits of this model further. In addition, the Atherley Furniture Company greatest threat is the decreased market for their “Parkdale” model. The “Parkdale” model has the most time consuming and costly production. With lack of a market for this model, the company stands to continue to lose profits. In conclusion, if the company wishes to continue to operate their chair division profitably as well as efficiently, the above issues need to be addressed and corrected.
A medium-sized firm Clean fabrics Inc in United States has increased the company’s revenues strategically about $350 million dollars per year. The company struggles to meet the objectives of expanding the company along with the cost control. The vision of the company is to provide the right choice to the clients and supplying the support services for the cruise ship industry in the different parts of the world operating in the areas of hotel and travel. The services are supplied to major hotel chains and cruises including linen services in the south east area of United States. Comparatively, the cruise ship industry provides the company with an
White says that “to produce a new vehicle it takes three to five years” (332), but he neglects to prove this information with ethos. The author later defends the automakers by stating “that doesn’t mean auto makers and their technology suppliers aren’t serious about rethinking the status quo” (333), therefore, he could confuse the reader with mixed opinions (332-333).
7. (10 pts.) Westinghouse and General Electric are competing on the newest version of clothes washer and dryer combinations. Two pricing strategies exist: price high or price low. The profit from each of the four possible combinations of decisions is given in the following payoff matrix:
In this paper, I will be outlining the costs and benefits of social and technological fixes, and then I will be assessing the use of social and technological fixes of air pollution through the use of automobiles.
This case analysis explores the possibility of Breezy, a leading supplier of carburators and air filters in North America, the possibility of developing offshore busines in countries where car manufacturing is growing. The report is structured as follows: First, there are five important questions that Breezy must consider and ask itself before developing a relationship with a new customer. After Breezy decides to go offshore, it will have to go through the negotiating process, which involves five steps. Breezy then, must have capabilities of how an offshore business is organized, consider the many different costs and risks involved in the implementation and decide how it will finance the project. The report also talks
These waiting times severely delay trucks and thus increase the cost of transportation and extend the lead times. Moreover, the trucks inefficient utilization have negative affects on the fixed cost of owned vehicles.
Hardee Transportation is a small truckload business, and it is currently faced with a problem that practically every company has; how to better serve its customers, and maintain a profitable return. It is essential that companies such as these evaluate their operations to ensure that it possesses the most efficient way to manage their assets. There is a great concern for these companies considering that the competition is out there, providing the same services at a lower cost, or accommodating their customer needs more fittingly. Hardee Transportation must take a look at their operations and come up with some plausible solutions to increase their revenue operations,
The major problem faced by Destin is that pumps are losing profits due to intense price competition. Destin was forced to match the continuously reduced price from its competitors despite of the high production costs. As a result, the gross margins in the latest month have fallen from 35% to 22%. The reason why the company has been stuck in such difficulty, as Peggy pointed out in the meeting, is primarily because its competitors might be using a revised costing system while Destin is still using the traditional one.
The Dow Chemical Company is the second largest chemical manufacturer in the world in terms of revenue and in terms of market capitalization; it is the third largest in the world (as of 20071). There was a steady growth of the market from the year 2002. But before that the company faced a back drop in the profit margin. The company realized its growth in 2002 only after merging with Union Carbi as the company’s sells rose to $27.8 billion. Back in 1998, the company faced the real down turn of the sale to $18.4 billion. Then, for 4 years continuously, the company managed to keep the sales around $20 billion. In the year 2000, the company planned to adopt a