curled-metal case study analysis

solved solution for price calculation of curled metal case study problem

1. Curled Metal Inc.
By: Sheetal Gwoala
Jisun Hong
Jacquiline Njiraine
Gabriela Silva
Betel Solomon

2. Problem
Deciding the price of the CMI
cushioning pads

3. Pricing Analysis

4. Alternative Pricing

5. Assumptions
Such sophisticated product has never been sold in pile
driving industry therefore the price will be based on
perceived value
Industry leader, will give us competitive advantage
Projected cost data based on the manufacture of only one
pad size and assumed these numbers would not vary
dramatically with a mix of sizes.

6. Strategy
Product differentiation
The CMI cushion pads eliminate downtime making them a
work-saving tool
The CMI cushion pads contain no hazardous materials
Significant cost savings while using CMI pads

7. Conventional pads Vs CMI pads

8. S.W.O.T analysis
Strength
Able to manufacture high performance cushion
pads that will last longer
CMI posses great processing technology
It will help companies to save a significant amount
of time and lower costs
Weakness
The ambiguity of pricing and distributing the pads

9. S.W.O.T analysis(cont.)
Opportunity
Little attention to pads give advantage to CMI cushion pad
no dominant firm has emerged
Approval from professor McCormack will create an awareness and
recognition from the pile driving industry
Threats
Hesitation from Pile hammer distributing/renting companies since
the pads enable a constructor to return the equipment faster.
Need industry acceptance for the pads

10. The VRIO Framework
Valuable?Rare?
Costly to
Imitate?
Exploited by
Organization?
Competitive
Implications
Yes Yes Yes Yes Sustained
Advantage

11. Pricing Solutions
Price CMI cushion pad higher than regular cushion pads
because it is a work-saving tool and lasts longer
CMI should use existing equipment to manufacture cushion
pads
Using existing equipment to produce cushion pads brings
higher profit margin
Target contractors who have bigger complex projects and
can purchase the pads in a large scale

12. Recommendations
Built a brand name for the CMI cushion pad with the focus on a
work saving cushion pad
Use construction-oriented manufacturer representatives to sell
the product to engineering/construction contractors.
Advertise the product in the Oklahoma Contractor magazine
Feature the cushion pad in the “Piletalk” seminar
Use Professor McCormack approval to boost the brand name