Harvard Business Recurled Metal
CASE STUDY
Curled Metal Inc.
Engineered Products Division
Marketing Management
Professor João Borges de Assunção
Alexandre Neves, student nº 153011108
Curled Metal Inc. Engineered Products Division
CONTENTS
The Problem Statement ................................................................................................................ 3 Demand Estimation ....................................................................................................................... 3 Cost Estimation ............................................................................................................................. 4 Price Method Proposal .................................................................................................................. 5 Strategic Positioning and Pricing ................................................................................................... 7
Curled Metal Inc. Engineered Products Division
THE PROBLEM STATEMENT
Curled Metal Inc. has been given the opportunity to diversify its business portfolio. CMI had an impressive growth in revenues from $750.000 in 1991 to $55.000.000 in 2001. Strict environmental regulations in automotive sector were successfully addressed by their product Slip-Seal, and as consequence sales increased steadily over a decade. But the future had become a little bit dark, as CMI’s management team felt that Slip-Seal could lose some terrain to their competitors, nevertheless, a new opportunity had risen. Curled Metal Technology could be successfully applied in the driving process of piles. The existent cushion pads weren’t produced in an efficient manner, they had performance problems in transmitting power, and they had to be replaced frequently. Moreover they were made from hazardous materials that could cause accidents involving human losses and material losses. The CMI’s new product for pile driving had been tested by Kendrick and the results were a major success. Kendrick
Curled Metal Inc.
Engineered Products Division
Marketing Management
Professor João Borges de Assunção
Alexandre Neves, student nº 153011108
Curled Metal Inc. Engineered Products Division
CONTENTS
The Problem Statement ................................................................................................................ 3 Demand Estimation ....................................................................................................................... 3 Cost Estimation ............................................................................................................................. 4 Price Method Proposal .................................................................................................................. 5 Strategic Positioning and Pricing ................................................................................................... 7
Curled Metal Inc. Engineered Products Division
THE PROBLEM STATEMENT
Curled Metal Inc. has been given the opportunity to diversify its business portfolio. CMI had an impressive growth in revenues from $750.000 in 1991 to $55.000.000 in 2001. Strict environmental regulations in automotive sector were successfully addressed by their product Slip-Seal, and as consequence sales increased steadily over a decade. But the future had become a little bit dark, as CMI’s management team felt that Slip-Seal could lose some terrain to their competitors, nevertheless, a new opportunity had risen. Curled Metal Technology could be successfully applied in the driving process of piles. The existent cushion pads weren’t produced in an efficient manner, they had performance problems in transmitting power, and they had to be replaced frequently. Moreover they were made from hazardous materials that could cause accidents involving human losses and material losses. The CMI’s new product for pile driving had been tested by Kendrick and the results were a major success. Kendrick