AEM222 - case 1 - Adam Schulman AJS252; 001787462 Dominion...

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Adam Schulman AJS252; 001787462 2/3/2006 Problem : Dominion Motors & Controls Ltd. has had a relatively stable and significant holding in the market for Oil Pumping in Northern Canada through the early 1980s. However, recent field tests have yielded results regarding the favored features of a popular pump that would place Dominion in third overall within the competing market providing such pumps. In effect, Dominion must act quickly if they plan on preventing the loss of their current hold on the market. Possible Solutions : 1. The simplest solution would be to readjust the price of their currently popular and powerful 10-hp motor to that of a 7.5-hp motor. This would place a more powerful motor in competition with the smaller ones. Such a solution would be a relatively successful short term solution to the dilemma. Unfortunately, profits would be reduced since the 10- hp motor costs close to two-hundred dollars more that the 7.5-hp motor. Furthermore, profits would be reduced by around six-hundred dollars per unit. While this plan can be
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AEM222 - case 1 - Adam Schulman AJS252; 001787462 Dominion...

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