Curled Metal
Introduction
Curled Metal Inc (CMI) is a company whose strategy evolves selling products that used certain types of metal as a raw material. CMI rapidly grow in the last decade due to Slip-Seal, a product that meet the demanding specification of the automaker imposed by US strict environment legislation. In order to diversify offer from auto industry, CMI’s management decided to examine a new application for curled metal technology.
Situation Analysis
Company
Business Model and Competitive Strategy
In the beginning CMI fabricated custom components for chemical process filtration and other highly technical applications. The boost came when Slip-Seal was developed and gained 80% of market share. Sales increase from $750k in 1991 to $55M in 2007 but comparing 2006 to 2007 the net sales decrease 9,5% and the net income decrease 38,7%. CMI need a new product to increase sales and net income. CMI developed curled metal cushion pads that according to Joseph Fernandez, vice-president of the Engineered Division, can double CMI sales.
Competitive Advantage
Cushion pads are traditional made from hardwood blocks, aluminum plate and micarta slabs,micarta slabs or phenolic plastic. They were difficult to find, heat up, have low resistance and were difficult to substitute.
CMI’s cushion pads are made from Curled metal. Curled metal was continuous metal wire that was wound into tight, continuous ringlets. They can be made of various materials (e.g., cooper, monel and stainless steel) and withstand almost any temperature or chemical which made possible to handle with protective gloves immediately after being used. CMI has the advantage to perform flattening and curling operations in-house and it is possible to create custom made pads up to 30 inch. CMI’s cushion pads are also thicker than conventional ones and have a coat with polyvinyl chloride to enhance its appearance.
Customers
Needs Analysis
Despite cushion pads importance to pile-driving process, little
Curled Metal Inc (CMI) is a company whose strategy evolves selling products that used certain types of metal as a raw material. CMI rapidly grow in the last decade due to Slip-Seal, a product that meet the demanding specification of the automaker imposed by US strict environment legislation. In order to diversify offer from auto industry, CMI’s management decided to examine a new application for curled metal technology.
Situation Analysis
Company
Business Model and Competitive Strategy
In the beginning CMI fabricated custom components for chemical process filtration and other highly technical applications. The boost came when Slip-Seal was developed and gained 80% of market share. Sales increase from $750k in 1991 to $55M in 2007 but comparing 2006 to 2007 the net sales decrease 9,5% and the net income decrease 38,7%. CMI need a new product to increase sales and net income. CMI developed curled metal cushion pads that according to Joseph Fernandez, vice-president of the Engineered Division, can double CMI sales.
Competitive Advantage
Cushion pads are traditional made from hardwood blocks, aluminum plate and micarta slabs,micarta slabs or phenolic plastic. They were difficult to find, heat up, have low resistance and were difficult to substitute.
CMI’s cushion pads are made from Curled metal. Curled metal was continuous metal wire that was wound into tight, continuous ringlets. They can be made of various materials (e.g., cooper, monel and stainless steel) and withstand almost any temperature or chemical which made possible to handle with protective gloves immediately after being used. CMI has the advantage to perform flattening and curling operations in-house and it is possible to create custom made pads up to 30 inch. CMI’s cushion pads are also thicker than conventional ones and have a coat with polyvinyl chloride to enhance its appearance.
Customers
Needs Analysis
Despite cushion pads importance to pile-driving process, little