Carrier Corporation Case Study Analysis

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Intro During the 1990’s the Carrier Corporation was working on a highly innovative new global chiller under 300 kW, called Aquasnap. The new design would integrate a Hydronic Kit inside the chiller, all previous versions required installation of the kit outside the chiller. While the new design would cost less, require less installation time, and save floor space, it did raise some concerns. Carrier was becoming deeply invested in the design and was worried if the world was ready for such an innovative product. The following sections answer some of the issues; what should Thierry Jomard’s (lead engineer) decision be, should the hydronic kit be integrated and how does Carrier address future environmental regulations, what are the…show more content…
The only way Carrier could compete was by designing a product with low labor costs” (Gibbons, and Ramdas) (i.e. the aquasnap). The implementation of the integrated aquasnap, will increase at a slightly greater rate each year, and will allow Carrier to earn about $8.6 million dollars more in 2002 alone, and $22.5 million more from 1997 to 2002. Also mass production will lower the overall cost of manufacturing due to various factors (i.e. cost of materials, number of parts, number of operations, assembly time, assembly cost, selling price, and overall price will all be reduced). The share projections are a steady 14% until 1998. If the delay bleeds into 1999 the overall loss on that entire year would be $6.8 million, but the overall market share would still increase $15.7 million through 2002. Scenarios similar to Aquasnap can be found in gaming consoles. The integration of the DVD to the PS2 game console allowed Sony to set itself apart from Nintendo, making it the highest selling game console ever. The PS2 saved the customer space, time, and money by not having to buy a dvd player. Even though the PS2 was $100 more than the Nintendo N64, it dominated the market because of simplicity and convenience (Playstation website). Aquasnap also creates simplicity and convenience for the customer but is cheaper than the competitor; therefore similar market dominance can be expected. The chart on the right shows the sales of the N64 and the above chart shows the

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