Curled Metal

Curled Metal Inc

From Competitive Advantage to Competitive Strategy

Can cushion pads for piling create a competitive advantage for CMI-EPD? How is the CMI cushion pad different from conventional pads?

• Key features of cushion pads …

– Effectiveness in transmitting energy from hammer to pile – Safety – Ability to prevent shock from damaging hammer

•

How CMI pads compare with conventional pads …

– Effectiveness

• Higher productivity evidenced from higher driving rate of CMI pads • Lesser heat generated in CMI pads • CMI pads more resilient – lasts longer

– Safety

• Some qualitative evidence of no hazardous materials used, etc. – no quantitative data

– Shock prevention:

• No evidence from case on this feature

Curled metal cushion pads seem to have superior characteristics in two out of three features – we can quantify the benefits from at least one feature – effectiveness/ productivity

28 Dec 2010 2 Strategic Management, Session 5 IIM Calcutta / Sai Prakash R. Iyer

1

Curled Metal Inc

From Competitive Advantage to Competitive Strategy

Can cushion pads for piling create a competitive advantage for CMI-EPD? What is the value created by CMI cushion pads in the piling operation?

Conventional Pads (Kendrick trial) Driving rate (A) Driving time (B) (300 piles X 50 ft./pile) Change time (C) Total time (B +C) Cost of piling (at $ 414 per hour) Cost of pads WTP for CMI pads 150 feet/hour 100 hours 6.67 hours (20 set changes X 20 minutes/change) 106.67 hours $ 44,161.38 $ 3,000 (20 sets X $150/set) CMI Pads 200 feet/hour 75 hours 4 minutes (1 set change X 4 minutes/change) 75.06 hours (31.61 hours saving with CMI pads) $ 31,074.84 ($ 13,086.54 savings from improved productivity) ??? $ 16,086.54 for 6 pads $ 2681.09 per pad

Curled metal cushion pads add considerable value – the high WTP is a function of the product attribute set that can give CMI competitive advantage in the market for cushion pads

28 Dec 2010 3 Strategic Management,...