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Case Study Dmc Motors And Control

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DMC Motors & Controls, Ltd. 1) What do we know about this case? The year is 1985. DMC is a leader in Motor and control equipment sales in Canada; currently capturing over 50% of the market share. John Bridge of Hamilton Oil Company (a major buyer with strong influencing ability on the markets buying habits) conducted tests this year, the results of which could place DMC as a third preference to its major competitors thereby having a negative impact on sales and profitability. Impact of this case is primarily in the area of the sales of the Fractional Horse power motor units by the top three market players and what should DMC do, to maintain its leading position in the market. DMC faces competition locally as well as internationally. Locally …show more content…

Overmotoring was becoming an increasing menace in the industry and was on the edge of being eradicated. NEMA standards are not to be broken as this would be ethically wrong on the part of DMC who has always abided by them. 3) Is this a major or a minor problem? This is a potentially major problem as the market will soon be infiltrated with information that not only affects the current market position of DMC but also has impacts on the future sales of all like companies. Bridge’s, being an influential person in the decision making of Hamilton Oil company, indicated that DMC was no longer their preferred buyer. DMC has the advantage of getting this information through their sales force before it has been released to Hamilton’s executives and to the public as well. The ball in now in the court of DMC and action is the need of the hour as to secure current as well as future market grip. DMC is now faced with an even bigger challenge of what to do and has 4 alternatives. 4) What are the alternatives? Do the math for each alternative. a. Chop down the price of the 10HP motor to that of a 7.5HP motor - Immediate competitive …show more content…

Note: Loss of income on the part of the company by cutting prices of 10HP motors to that of 7.5HP motors: (loss in income = $1580 - $1200 = $380 per

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