Curled Metal Inc
Curled Metal Inc – Engineered Product Division
Overview
Cumberland Metal Industries (CMI) was a company which sold metal as raw material in other products. After the company had developed the product – Slip Seal that could meet the demanding specification of the automakers, it had grown rapidly over the past decade. The sales increased from $750,000 in 1991 to over $55 million in 2007. However, the sales decreased from 61 million in 2006 to 55 million in 2007, a net decrease of 9.5%, the net profit decreased from 5.7 million in 2006 to 3.5 million in 2007, a net decrease of 38.7%. The company was under the pressure to diversity its products in order to increase the sales and the net profit. CMI had developed new product, curled metal pad (CM pad) that according to Joseph Fernandez, vice-president of the Engineered Division. CMI had to consider how to enter into the market for this new products, identify the potential customers especially and determine the price of this new product.
Competitive advantage
Curled metal would be made of various metal (e.g. copper, monel and stainless steel), it could be made to withstand any temperature or chemical. It was more chemical and temperature resistant. It never went above 250F and where the conventional pads can reach 600-700F. Thus more energy could be used to drive the pile with CM pads compared to using conventional pads. Besides, CM pads contain no hazardous material, which were less dangerous for health.
According to the Kendrick and Corey test, CM pad had the several competitive advantages as below:
- Better performance as CM pad drive pile 20% - 33% faster
- CM pad has lifetime 10 times longer
- Less CM pads required per job
- Less set changes
- Less time required for changing per set, less downtime
Thus, CMI shall focus on 11 1/2” pad and position its CM pad as new industry standard whiles emphasis on its cost efficiency and superior performance.
The Potential Market Demand
There were not
Overview
Cumberland Metal Industries (CMI) was a company which sold metal as raw material in other products. After the company had developed the product – Slip Seal that could meet the demanding specification of the automakers, it had grown rapidly over the past decade. The sales increased from $750,000 in 1991 to over $55 million in 2007. However, the sales decreased from 61 million in 2006 to 55 million in 2007, a net decrease of 9.5%, the net profit decreased from 5.7 million in 2006 to 3.5 million in 2007, a net decrease of 38.7%. The company was under the pressure to diversity its products in order to increase the sales and the net profit. CMI had developed new product, curled metal pad (CM pad) that according to Joseph Fernandez, vice-president of the Engineered Division. CMI had to consider how to enter into the market for this new products, identify the potential customers especially and determine the price of this new product.
Competitive advantage
Curled metal would be made of various metal (e.g. copper, monel and stainless steel), it could be made to withstand any temperature or chemical. It was more chemical and temperature resistant. It never went above 250F and where the conventional pads can reach 600-700F. Thus more energy could be used to drive the pile with CM pads compared to using conventional pads. Besides, CM pads contain no hazardous material, which were less dangerous for health.
According to the Kendrick and Corey test, CM pad had the several competitive advantages as below:
- Better performance as CM pad drive pile 20% - 33% faster
- CM pad has lifetime 10 times longer
- Less CM pads required per job
- Less set changes
- Less time required for changing per set, less downtime
Thus, CMI shall focus on 11 1/2” pad and position its CM pad as new industry standard whiles emphasis on its cost efficiency and superior performance.
The Potential Market Demand
There were not