Case Study: DMC Motors And Controls, Ltd

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DMC Motors & Controls, Ltd. 1) What do we know about this case? The year is 1985. DMC is a leader in Motor and control equipment sales in Canada; currently capturing over 50% of the market share. John Bridge of Hamilton Oil Company (a major buyer with strong influencing ability on the markets buying habits) conducted tests this year, the results of which could place DMC as a third preference to its major competitors thereby having a negative impact on sales and profitability. Impact of this case is primarily in the area of the sales of the Fractional Horse power motor units by the top three market players and what should DMC do, to maintain its leading position in the market. DMC faces competition locally as well as internationally. Locally the prices were fairly competitive. However, international competition was priced 10% - 20% below Canadian prices which stresses the importance of maintaining their leading position locally. Selling was primarily through sales people who would be required to keep in touch with all levels of staff in the oil companies in order to make a sale. Bigger oil companies took decisions based on tests and studies and smaller companies generally followed suit. Advertising was mainly done through pamphlets (actual installation pictures with long sales arguments) and Catalogs (detailed information on the entire product line). 2) What functional areas does the case involve? The Consumers of DMC are getting more and more educated with the industry

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