Dominion Motors & Controls Ltd., the leading manufacturer of motors in Canada, is looking whether to make a special purpose motor for this market or reduce the price on the current design. Or the company could also contest the test results.
E. Raymond Corey
Harvard Business Review (589115-PDF-ENG)
June 06, 1989
Case questions answered:
- Is marketing only the marketing department’s job?
- What is it that we know about this case?
- Is this a brushfire or an important problem?
- What are the alternatives, and what is the mathematic calculation?
- What should DMC (Dominion Motors & Controls Ltd.) do this selling season?
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Case answers for Dominion Motors & Controls Ltd.
Description – Dominion Motors & Controls Ltd. Case Study
Dominion Motors & Controls Ltd., the leading manufacturer of motors in Canada, is threatened by a loss of market share in oilfield pumping motors because a significant customer, having tested several competing motor brands, finds a competitor’s motor to be superior.
A central issue, in this case, is whether to make a special purpose motor for this market, reduce the price on the current design, or contest the test results.
1. Is marketing only the marketing department’s job?
Marketing is not just the marketing department’s job. It involves all the stakeholders to collaborate, such as:
- HR to identify locations where they can get the appropriate talent at cost-effective rates and where government policies, political and economic environment are suitable.
- Finance to know the budgets, possible cut downs, low performing products, etc. to formulate new strategies.
- Manufacturing department to do the research and development in areas to create products for large markets.
- Market Research department to collect information about their target audience, and accordingly, position their product in front of the customer.
- Distributors to get the product at the right locations.
2. What is it that we know about this case?
DMC (Dominion Motors & Controls Ltd.), which produces motor control units, line of motors, and panelboard units for oil well pumping engines, controls the market for oil pumping motors in Northern Canada by over 50%.
During 1984 and 1985, John Bridges, Hamilton’s Chief Electrical Engineer, conducted tests on motors from different manufacturers and rated DMC’s motors to be third. This can not only impact the purchasing decision of Hamilton, but there are other smaller companies as well who could follow this large company for their motor purchasing decisions so that they…