The case of Dominion motors and controls ltd
Summary :
Table of Contents
- Company background
- Oil well pumping motor market
- The buying and selling of oil well motors
- Dominion's advertising and promotion programs
- Factors affecting specifications of oil well pumping motors
- Hamilton's field test
- Possible solutions
- Reducing the price of DMC's 10 hp motor
- Reengineering present 7.5 hp motor
- Undertaking design of a definite purpose motor
- Attempting to persuade Bridges and Hamilton executives
- Recommendations
Abstract
dominion motors & controls, ltd (DMC) had acquired 50% of the oil well pumping market in the northern Canadian oil fields since they were started in 1973. DMC offered a line of motors ranging from small fractional horsepower (hp) units to large 2,000 hp motors. It also produced motor control and panel board units. By 1984, there were approximately 5,500 producing wells in the fields. According to industry estimates, an average of 1,000 new wells would enter production each year for the next five years. Sales to this market were seasonal; over 80% were made between April and September.
DMC's competition consisted of other well-known Canadian Motor manufacturers and a number of foreign competitors. All the Canadian manufacturers maintained closely competitive pricing structures, while foreign competitors usually sold 10% to 20% below Canadian established prices.
DMC's competition consisted of other well-known Canadian Motor manufacturers and a number of foreign competitors. All the Canadian manufacturers maintained closely competitive pricing structures, while foreign competitors usually sold 10% to 20% below Canadian established prices.
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