Dominion Motors & Controls, Ltd.

Analysis
Hamilton is the largest active oil company in Canada, operating over 30% of producing wells, and Bridges is extremely influential in Hamiltons purchasing policy. Thus losing to Hamilton may result in a dip in industry wide sales for DMC if other companies decide to follow Hamiltons purchasing policy . DMC may still be ahead of the others in information, but their machine is 3rd choice. It could lose the industry by losing the leadership of the industry and thus market share. If DMC loses Hamilton it could lose its name as a result of being downgraded in the industry. DMC loses Hamilton implies lost dollars; immediate as well as in future. The change in the schedule of power rates, could affect the specifications of oil well pumping motors. Power companies also demanded that over motoring must be stopped.

Conclusion
Our group would like to go with Alternative 4 because of the following reasons: A1-Reducing the price of the motor will work only in the short run. Those who want10hp will get it at a lesser price. A2-(i)Will result in Torque war. (ii) High cost involved, hence sell it in lower quantities. A3-As the formal report didnt comes out in public there is no large benefit for going for a new product. As it is designing a definite purpose motor cannot solve the issue of competency. A4-It is difficult to convince Hamilton. But we find it is the best alternative.