Dominion Case Analysis

Dominion Case Analysis - Mike Mascarenhas Mrm249 1961069...

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Mike Mascarenhas Mrm249 – 1961069 Team 5 February 1, 2008 Dominion Motors Case Analysis SUMMARY OF PROBLEM Dominion Motors & Controls, Ltd. is a Canadian company that, in the eighties, dealt motors and control equipment to oil drillers. When Canadian drilling began to expand in the seventies, Dominion was at the head of the pack. Many believe that this was due to its excellent human resources. However, in 1985, tests performed by Hamilton Oil Company stated that Dominion’s motor ranked only third in terms of starting torque, next to Spartan and Universal Motors. This presented an issue: what should a company who currently is at the head of an industry do to prevent declining in sales when presented with a potentially cataclysmic set of data? SOLUTION #1 Four solutions are given in the case analysis guide. The first of them is to lower the price of its 10 horsepower motor to that of its 7.5 horsepower motor. This could attract the attention of oil dealers; many people are willing to detract from quality when the price is right. This would certainly keep sales high, but revenue prices would sink nonetheless. This idea cites no possible way to maintain revenue in the long run. Oil companies will not buy more motors than they need because they are cheaper; they will only purchase the same amount as they used to. Additionally, should Dominion follow this route, they
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