Executive summary The Computron‚ Inc. is facing problems regarding pricing the bid for Computron 1000X‚ future functioning of Frankfurt plant‚ impact on production due to current market breakdown. The main concern about Computron is that if the bid of 1000X should not higher than 20% of least bid to get the contract. It is strongly recommended to get the bid for functioning of new plant. Various issues regarding cutting down prices‚ bidding high or low and its pros-cons‚ current market situation
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CASE 2 Computron inc (2006) Date: 15/05/2015 Tornike Khaduridze History Computron was an American firm that had‚ in the winter of 2002‚ opened a European sales office in Paris with Thomas Zimmermann as its manager. The company was the leader on the market between 2002-2005. The Computron 1000X was designed specifically for process control applications. It was actively used in chemical industry. The computers were produced
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Computron Inc. 1. What are the considerations affecting the price strategy of Computron? What is the relative importance of these considerations? What are the international marketing implications? Summer 1996‚ Zimmerman‚ manager of the new European Sales Division of Computron‚ an American manufacturer of medium sized digital computers‚ is faced with a biding process. He has a deadline in two weeks to decide if Computron would submit and if so at which price on a bid to sell a Computron 1000X
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Harvard Business School 9-597-063 Rev. November 14‚ 1997 DO Computron‚ Inc. (1996) In July 1996‚ Thomas Zimmermann‚ manager of the European Sales Division of Computron‚ was trying to decide what price to submit on his bid to sell a Computron 1000X digital computer to Kšnig & Cie.‚ AG‚ GermanyÕs largest chemical company. If Zimmermann followed ComputronÕs standard pricing policy of adding a 33 1 3 % markup to factory costs and then including transportation costs and import duty‚ his bid would
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Computron Inc. Q1: How far does Zimmermann have to cut the price to have a chance? The cost of a 1000X computer for the European market usually consists of the cost to manufacture ($768’000)‚ the overheads‚ a markup of 33 1/3% ($256’000) that includes the profit‚ research and development and selling expenses; in addition to these components‚ there are transportation and installation costs ($67’200) and finally the import duty ($153’600). Computron Inc. has previously assembled and manufactured
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Analysis for Computron Case Situation Analysis The following internal and external factors should be taken into consideration before decide what price to submit the bid to sell a Computron 1000X digital computer to Konig. (If Computron follow its normal price ($1‚244‚800)‚ there will be about 43% higher than one of its competitors). Internal factors: 1‚ Computron has core competencies in terms of product quality‚ reliability‚ reputation and rigorous services. 2‚ Computron has policy
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Main issue: European Sales Division of Computron had to decide what price to submit for its Computron 1000X digital computer for the bid of a purchase contract from Konig & Cie.‚ AG. * Four other computer manufacturers‚ including RMAG‚ EDAG and Digitex‚ would bid for the contract. The competitors’ prices will most likely be around the $872‚000 proposed by RMAG. * Computron used cost based pricing (firm’s standard pricing policy): The European Price= U.S. cost + 33.33% x Cost (Markup)
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REPORT ON THE GROWTH AND EXPANSION POLICY IN THE EUROPEAN DOMAIN OF COMPUTRON INC. INSTITUTE OF PETROLEUM MANAGEMENT‚ GANDHINAGAR Submitted to: Prof Sanjay Gupta Date of Submission: 15.09.2008 Submitted by: Joydeep Mukherjee Roll No: 20081020 To: Mr Thomas Zimmerman (Manager‚ European Sales Division‚ Computron Inc.) From: Joydeep Mukherjee Date: 15 September‚ 2008. Subject: Evaluation of the Opportunities and Challenges faced
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Worksheet for Computron: Competitive Bidding Assignment: Analyze the case. Summarize your analysis of alternative bidding strategies in the following table. (Identify the key criteria. Evaluate the alternative bidding strategies on each criterion.) Draw an appropriate conclusion. Criteria | Alternatives | | I. Submit bid at list price | II. Cut Price (16 %) | III. Do not Bid | High DependabilityReasonable PriceLow Emphasis on FlexibilityPinpoint Accuracy Not Required | Advantages1. Maintain
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Case Overview Thomas Zimmermann‚ manager of the European Sales Division from Computron‚ has to give a reasonable bid to win the contract of 1000X digital computers to Konig & Cie AG (Germany)‚ which is the largest chemical company and comprises of 80% business for Computron in Germany in 2005-2006. Because there are conflicts between the company pricing policy and the bid requirements due to tough competition‚ we will explain in the following the strategic positioning that Thomas Zimmermann needs
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