Dominion Motors case
DOMINION MOTORS AND CONTROLS, LTD.
Case Facts:
Dominion Motors and Controls, Ltd. (DMC) was a company producing motors of varying horsepower (hp) and other accessories for motors like motor control and panel-board units
DMC was facing a threat of loss of market share owing to some tests by Hamilton Oil Company – the largest Canadian oil company
The results of these tests were not yet reported, but they were rumoured to make the complete motor market incorporate some serious changes in the design of their motors in terms of starting torque, fluid-lifting requirements etc. and therefore, improve efficiency
Dominion Motors and Controls, Ltd. (DMC), had over 50% market share in the Canadian oil fields with a revenue of $323 million. The company’s points of difference were:
1. Product quality
2. Excellent salesperson (one)
3. Varied hp motors
Dominion Sales:
1. 80% of DMC’s sales were made directly by company’s salespersons to OEMs and large industrial users.
2. 20% of the sales were made to distributors for resale mostly to small users and small OEMs.
Buying pattern were seasonal which started in April to September
Competition
Although it is a very fragmented industry with many small players there were only 3 major players in this industry:
1. Spartan Motors
2. Universal Motors
3. Dominion Motors
People involved in Buying Behaviour:
Operations people: They are usually influencers, users or buyers
Engineers and Purchasers: Buyers
Geologist: Influencers
Standard Functionaries: Influencers and Gatekeepers
Rig Supervisors and foreman: Very important influencers
PROBLEM:
To evolve a strategy for Dominion motors to be able to maintain their competitive advantage and market share in the oil well pumping market
Factors affecting the sales:
NEMA specifications: All companies try to exceed these specifications to make sure that they remain competitive but the equipments are all safe. Any alterations in the design of the motors is likely to cause Dominion to fall
Case Facts:
Dominion Motors and Controls, Ltd. (DMC) was a company producing motors of varying horsepower (hp) and other accessories for motors like motor control and panel-board units
DMC was facing a threat of loss of market share owing to some tests by Hamilton Oil Company – the largest Canadian oil company
The results of these tests were not yet reported, but they were rumoured to make the complete motor market incorporate some serious changes in the design of their motors in terms of starting torque, fluid-lifting requirements etc. and therefore, improve efficiency
Dominion Motors and Controls, Ltd. (DMC), had over 50% market share in the Canadian oil fields with a revenue of $323 million. The company’s points of difference were:
1. Product quality
2. Excellent salesperson (one)
3. Varied hp motors
Dominion Sales:
1. 80% of DMC’s sales were made directly by company’s salespersons to OEMs and large industrial users.
2. 20% of the sales were made to distributors for resale mostly to small users and small OEMs.
Buying pattern were seasonal which started in April to September
Competition
Although it is a very fragmented industry with many small players there were only 3 major players in this industry:
1. Spartan Motors
2. Universal Motors
3. Dominion Motors
People involved in Buying Behaviour:
Operations people: They are usually influencers, users or buyers
Engineers and Purchasers: Buyers
Geologist: Influencers
Standard Functionaries: Influencers and Gatekeepers
Rig Supervisors and foreman: Very important influencers
PROBLEM:
To evolve a strategy for Dominion motors to be able to maintain their competitive advantage and market share in the oil well pumping market
Factors affecting the sales:
NEMA specifications: All companies try to exceed these specifications to make sure that they remain competitive but the equipments are all safe. Any alterations in the design of the motors is likely to cause Dominion to fall