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Curled Metal Inc.

Curled Metal Inc. By: Sheetal Gwoala Jisun Hong Jacquiline Njiraine Gabriela Silva Betel Solomon. Problem. Deciding the price of the CMI cushioning pads. Pricing Analysis. Alternative Pricing. Assumptions.

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Curled Metal Inc.

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  1. Curled Metal Inc. By: Sheetal Gwoala Jisun Hong Jacquiline Njiraine Gabriela Silva Betel Solomon

  2. Problem Deciding the price of the CMI cushioning pads

  3. Pricing Analysis

  4. Alternative Pricing

  5. Assumptions • Such sophisticated product has never been sold in pile driving industry therefore the price will be based on perceived value • Industry leader, will give us competitive advantage • Projected cost data based on the manufacture of only one pad size and assumed these numbers would not vary dramatically with a mix of sizes.

  6. Strategy Product differentiation • The CMI cushion pads eliminate downtime making them a work-saving tool • The CMI cushion pads contain no hazardous materials • Significant cost savings while using CMI pads

  7. Conventional pads Vs CMI pads

  8. S.W.O.T analysis Strength • Able to manufacture high performance cushion pads that will last longer • CMI posses great processing technology • It will help companies to save a significant amount of time and lower costs Weakness • The ambiguity of pricing and distributing the pads 

  9. S.W.O.T analysis(cont.) Opportunity  • Little attention to pads give advantage to CMI cushion pad • no dominant firm has emerged • Approval from professor McCormack will create an awareness and recognition from the pile driving industry Threats  • Hesitation from Pile hammer distributing/renting companies since the pads enable a constructor to return the equipment faster. • Need industry acceptance for the pads

  10. The VRIO Framework Costly to Imitate? Exploited by Organization? Competitive Implications Valuable? Rare? Yes Yes Yes Yes Sustained Advantage

  11. Pricing Solutions • Price CMI cushion pad higher than regular cushion pads because it is a work-saving tool and lasts longer • CMI should use existing equipment to manufacture cushion pads • Using existing equipment to produce cushion pads brings higher profit margin • Target contractors who have bigger complex projects and can purchase the pads in a large scale

  12. Recommendations • Built a brand name for the CMI cushion pad with the focus on a work saving cushion pad • Use construction-oriented manufacturer representatives to sell the product to engineering/construction contractors. • Advertise the product in the Oklahoma Contractor magazine • Feature the cushion pad in the “Piletalk” seminar • Use Professor McCormack approval to boost the brand name

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