Dominion Motors

Case Analysis: Dominion Motors & Controls, Ltd.

Marketing Management 3301 - TF 9:50

Professor Susan Sieloff

Written By: Patrick Wilver & Christina Ramos

Dominions Motors & Controls, Ltd. (DMC), is a producer of motors. This company was a hefty supplier of both motors and control equipment in the Canadian market. Also, DMC is very reputable for their product quality. Furthermore DMC developed a strong market position due to hiring a salesperson that capable to engage in the technical language of oil. With this, DMC had acquired over 50% of the available market for oil well pumping in Northern Canada.

In spite of this, John Bridges, chief electrical engineer, of Hamilton Oil Company conducted field test on oil well pumping motors. Hamilton owns and operates 30% of Canada’s producing wells, which is a direct threat to DMC’s share of the oil well pumping market. These finding are not in favor of DMC’s products and current capabilities which could cause customer shift to more efficient and appropriate products offered by competitors such as Spartan and Motor Manufacturer. Assuming customers shift to another competitor this can cause a direct hit in revenue streams resulting in lowered profits to DMC.

Furthermore power companies released two major announcements: graduated schedule of power rates dependant on horsepower rating, as well as potential penalties for overmotoring / low “power factors” in the future. The power companies have not indicated when the overmotoring penalty would incur, but this concern is something DMC should consider when deciding on how to maintain their share of the market.

DMC motors have been positioned third best by John Bridges, chief electrical engineer, of Hamilton Oil Company. Spartan was ranked first in the industry followed by Motor Manufacturers Universal which was ranked second. DMC also has foreign competitors such as the British, German, and Japanese firms. DMC’s Canadian competition is competitively priced...