Case Study: Dominion Motors & Controls, Ltd.

Case Study: Dominion Motors & Controls, Ltd.

The issue: A field test conducted by John Bridges concluded that the Dominion Motors Company’s best selling product is a distant third compared to its two direct competitors. The executives of Doninion Motors have two months to decide on four alternatives that could possible combat Bridges report and ensure the company’s future in the oil drilling business.

The Opportunity: The Dominion Motors Corporation has a strategic advantage in this situation. By having advanced knowledge of the field test results, Dominion Motor executives can offer both financial and product alternatives to their consumers which in turn would make the results of the field test irrelevant.

The Challenge: The Current 7.5-hp motor that Dominion Motor produces does not have the start up torque of its competitors which is a concern since industry standards to operate in harsh conditions call for a motor with high start up torque and is a desired trait by the consumer.

Alternative 1: I disagree with this approach as a long term solution to this problem. By Dominion Motors reducing the price of their 10-hp motor to compete with the 7.5-hp motors of the competitor it will show weakness with Dominion Motors confidence in their current products and the development of future efficient products. This approach will also drive down the future profitability for the entire industry.

Alternative 2: I disagree with this approach. To reengineer the design of the current 7.5- hp motor this late in the game will be costly and not in the best interest of Dominion Motor future development. The competitor is showing advancements in their development and design of new more efficient products which needs to be matched by Dominion Motors to stay in this market.

Alternative 3: Of the four alternatives given in this study, I feel this proposal is most beneficial to Dominion Motors. With the competition showing a willingness to develop and produce...