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

AssumptionsSuch 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.

StrategyProduct 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

Conventional pads Vs CMI pads

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

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

The VRIO Framework

Valuable? Rare?Costly toImitate?

Exploited byOrganization?

CompetitiveImplications

Yes Yes Yes Yes SustainedAdvantage

Pricing SolutionsPrice 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

RecommendationsBuilt 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