dominion practice case - Chris Barger Group 24 Dominion...

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Chris Barger Group 24 Dominion Case 1/26/08 Dominion Motors faces a report as a third choice motor company threatening its market share in the oil well pumping market. The first solution is to reduce the price of the 10-hp motor to that of the 7½-hp motor. This solution may be able to combat the threat Hamilton’s endorsement of the Spartan motor, but this endorsement is not public yet so reducing the price can at least wait until the announcement. A lower price in the future may be necessary as the power factor of the higher hp motor is bad and companies using it will have to pay extra money due to the low power factor. As of now, none of these events have taken effect, so reducing the price of the 10-hp motor would most likely just reduce revenues. Also, the reduced price of the 10-hp motor may bring a lower quality company image to Dominion Motors, and affect the sales of their other motors as well. Lowering the price will just reinforce the rating that Hamilton gives its motor. This poor quality company image could be hard to undo, and this reason would contribute to the solution of waiting until Dominion’s market share actually drops before the price is reduced. The next solution is to reengineer DMC’s present 7 ½ hp motor to make its starting torque at least equal to that of Spartan’s torque. Modifying the internal
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  • Fall '08
  • STAFF
  • Electric motor, Dominion Motors

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