Industrial Grinders Copy
Industrial Grinders
What should Bridgeman do? Bridgeman is correct in his initial approach, although I believe there should be a few modifications made to his decision. I believe his plan on producing plastic rings and selling them in markets where they are already on sale is a sound decision. Multiple multi-national companies utilize this same technique under the guise of market testing for their new products. It would be foolish of any company to immediately begin selling 100% new product without an understanding of how that product would sell first. Additionally, Bridgeman’s superior stated himself that he needed to find a use for the steel, but would prefer that steel rings continued to be manufactured until inventory levels ran out in the following four months. This is ideal for Bridgeman because he may have a couple of customers that are hesitant to bring about change to their companies, and will only use steel rings because of the untested capabilities of the plastic rings. This would not only move physical inventory, but would also increase customer satisfaction with those particular customers. However, the pitfall here is that the customer may think that s/he is excluded from the plastic rings. They would have to understand upfront that it would be a transition process over to plastic rings while their confidence in them grew. However, I believe Bridgeman can utilize the steel for a better cause. The public realm loves it when major corporations do things for the communities they serve; if Bridgeman found a charitable use for the steel that he could publicize and market to his consumers, public opinion would go up. While he does not deal with the public directly, any sort of good publicity that he can bring to his company is desired. With profit margins for plastic rings being so high, Industrial Grinders can more than afford to offload the $93,000 worth of inventory via these means, within a year at the maximum. Even so, if only 10% of Industrial
What should Bridgeman do? Bridgeman is correct in his initial approach, although I believe there should be a few modifications made to his decision. I believe his plan on producing plastic rings and selling them in markets where they are already on sale is a sound decision. Multiple multi-national companies utilize this same technique under the guise of market testing for their new products. It would be foolish of any company to immediately begin selling 100% new product without an understanding of how that product would sell first. Additionally, Bridgeman’s superior stated himself that he needed to find a use for the steel, but would prefer that steel rings continued to be manufactured until inventory levels ran out in the following four months. This is ideal for Bridgeman because he may have a couple of customers that are hesitant to bring about change to their companies, and will only use steel rings because of the untested capabilities of the plastic rings. This would not only move physical inventory, but would also increase customer satisfaction with those particular customers. However, the pitfall here is that the customer may think that s/he is excluded from the plastic rings. They would have to understand upfront that it would be a transition process over to plastic rings while their confidence in them grew. However, I believe Bridgeman can utilize the steel for a better cause. The public realm loves it when major corporations do things for the communities they serve; if Bridgeman found a charitable use for the steel that he could publicize and market to his consumers, public opinion would go up. While he does not deal with the public directly, any sort of good publicity that he can bring to his company is desired. With profit margins for plastic rings being so high, Industrial Grinders can more than afford to offload the $93,000 worth of inventory via these means, within a year at the maximum. Even so, if only 10% of Industrial