Curled Metal Inc Essay

3727 Words15 Pages
Case: Curled Metal Inc. (CMI)
Introduction Curled Metal Inc. originally sold metal as a finished good but has later developed its business concept to transforming metals into high value added manufactured products. Early in 2008, the company was about to launch a new product, which could revolutionize its business, setting a new standard in the pile-driving market: CMI cushion pads. However, this product launch poses key strategic issues to the company, ranging from assessing manufacturing capacity to defining the product value proposition. In the roadmap to the launch CMI has also to consider how to approach the market, identifying key customers or/and influencers, positioning its new product, assessing distribution alternatives and
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In fact, these are the products being used in the pile-driving industry, before the launch of CMI pads. However, the advantages of CMI pads (as described below) will tend to outperform any other substitute. On the other hand, the supplier’s power does not pose an issue for the pads industry, as different materials / metals can be used to produce or to “improvise” pads. In the overall situation analysis, the main aspects to consider in developing a marketing strategy are the following: • The customers present primarily a utilitarian need: Contractors want to be able to finish their piledriving works as fast as possible and to reduce their costs of operation. Therefore, their focus is clearly put on product performance vs. cost, but also on technical competence, as some projects present high levels of sophistication. • The pads demand is influenced by the economic environment, which affects similarly all the players. CMI business is affected namely by the construction (and pile-driving) market trends. Acting as
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provider of this dependent submarket, CMI has limited alternatives, other than expanding its market share, to counter an adverse economic environment. • Historically, CMI has competed through its technical competence and by its product performance, presenting superior products as result of effective R&D processes. • Other collaborators / prescribers / influencers have an important role in the market. As CMI prepares to launch a new revolutionary

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