Dominion Motors and

Controls Ltd.
Alternative 1
Reducing price is only a
short term measure
The motor is much more
expensive than
competitors
Inadvertently agreeing to
Hamiltons report
Will decrease margin but
increases the sales volume


Alternative 2
Violation of NEMA
standards
Rig supervisors could
boycott it
Could lead to a torque war
Re-engineering would lead
to loss of three months
sales
No additional investment
Alternative 3
Cater exactly to the market
needs
First mover advantage
Increase in market share
upto 60%
Hamiltonss report would
have impact on the next
sales cycle by which time
the new product would be
available.
NEMA standards

Alternative 4
Believe there are flaws in
the report
Can do their own testing
to dispute the report
Can cause conflict
Can create a road map for
specifically catering to the
motor needs of a company
Problem definition
New customer needs based on horsepower and removal of overmotoring
Hamilton test : Results will be out in May which has got DMC personnel extremely concerned
Recommendation
Reduce selling price of 10 hp motors if it does not want to lose market share
In the meantime, develop 5 hp motors with the power of 10 hp.
Challenge the findings of Hamilton b conducting your own tests. If they are sure about their products, do it under NEMA
supervision to give it more validity.
Engage with rig supervisors as they are the key buying influential.