Dominion Motors Case Study

756 Words4 Pages
DOMINION MOTORS & CONTROLS, Ltd. DOMINION MOTORS & CONTROLS, Ltd. M M Jamahl A. Grace Jamahl A. Grace Dominion is a large company that produces a line of motors, motor control units, and panel board units. They also acquired over 50% of the market in northern Canada in 1973. Belief for the success of this company is thought to have come from one individual who was hired with the company. Due to his market acquired skillset he was able to drive the company in a positive direction and steer away from the competition. Power companies implemented a graduated monthly base charge per HP at installation, to mitigate inefficiencies caused by over motoring in order to improve power factor. Upon the…show more content…
Thus, DMC will likely lose sales from companies industry-wide, as many will decide to follow Hamilton’s purchasing policy The information received from the sales person following up with Hamilton, had put the executives under jeopardy as to what steps must be taken to maintain the market share and grow in the market. The change in the schedule of power rates, could affect the specifications of oil well pumping motors. Power companies also demanded that over motoring must be stopped. In regards to Alternative 1 reducing the price of the motor will be a feasible option only for a short period. As in the industry the companies want more of starting torque. So it will work until the report is out. People who wanted 10 horse power will also get advantage as all those wanted 10hp will get it at a lesser price. We should also reduce price because if the report is out at the right time then the 10hp stock will not sell. So we need to reduce the price and sell it in the market. On the contrary we have deduced that Alternative 2 is not a profitable idea. Looking at the first option where the company looks at charging $790 and the company has to lower down its margins, which means they follow NEMA and the competitors can follow. The second option looks at charging $867. If the company were to increase the cost they run the risk of selling in lower quantities and margins. For Alternative 3, until the formal report comes out in the public domain till then there is no
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